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- 4. Consider a conventional fixed-rate 30-yr loan for 100,000 at 10%. a. What is the total payment and the total interest paid over the life of the loan? b. In a biweekly program, you pay half of the total monthly payment every two weeks until the loan is repaid. Assume biweekly compounding. In a biweekly program for this loan, when will it be paid off and what will be the total interest saved over the life of the loan?Suppose United Bank offers to lend you $10,000 for one year at a nominal annual rate of 8.00%, but you must make interest payments at the end of each quarter and then pay off the $10,000 principal amount at the end of the year. What is the effective annual rate on the loan?Suppose that one has a present loan of $1,000 and desires to determine what equivalent uniform EOY payments, A, could be obtained from it for 10 years if the nominal interest rate is 20% compounded continuously (M =∞).
- Consider a $200,000 loan with fixed monthly payments. Compute the amount of interest savings when the term of the loan is 15 years and the interest rate is 6.2% versus when the term is 30 years and the interest rate is 7.5% assuming that the loan is held until its maturity. Ignore time value of money.What is the size of eight equal annual payments to repay a loan of $1,000? The first payment is due one year after receiving the loan? The interest rate is 10% per year. Hint (at_Page 21) The constant amount or payment (PMT) per interest period is calculated using the formula: PV(RATE(1+ RATE)NPER (1+ RATE)NPER – 1 PMT = RATE = effective interest rate per interest period NPER = number of compounding (interest) periods %3D PV = present value or principle or initial amount at the startSuppose that you obtain a 100.000 TL loan from a bank. The maturity is 10 years and the annual interest rate is 10%. You will pay monthly installments. However, according to the loan agreement you will make no payments for the first three years. What would be the monthly payment amount? 830,06 TL 660,75 TL O 1.104,81 TL 879,46 TL O Diğer: What would be the annual interest rate for a 5.000.000 TL bank loan that requires 125.000 TL of total interest payment for a period of 4 months? O 7% 7,5% 8% 8,5% O Diğer:
- A loan for $53,000 is made for 10 years at 8 percent interest and no monthly payments will be due (assuming monthly compounding). a. How much will be due at the end of 10 years? b. What will be the yield to the lender if it is repaid after eight years? c. If 4 point is charged to the yield, what will be the new yield to the lender?1.Suppose you can save $200 per year at the end of each year for 15 years and earn 7.49% interest per year. However, you cannot start saving for five years. What is the present value of this annuity? 2.What are the annual payments for a 4-year $4,000 loan if the interest rate is 9% per year? Make up a loan amortization schedule.Consider a loan of 1,000,000 which is to be amortized by 60 monthly payments. The interest rate is 10% converted monthly. How much of the 47th payment goes to pay the interest? How much of the 47th payment goes to pay the principal?
- What is the size of 8 equal annual payments to repay a loan of $1,000? The first payment is due one year after receiving the loan? The interest rate is 10% per year. Hint: The constant amount or payment (PMT) per interest period is calculated by usingConsider a five-year floating rate loan with principal of $10 million and quarterly payments based on the three-month bbalibor rate. Suppose the bbalibor rates are 0.01 for the first three years and 0.02 for the last two years. What is the value of the floating rate loan when it is issued? Write your answer in millions of dollars without the $b) suppose that the market interest rate is 5%. Calculate the present value of the following. Show how your answer is obtained. Calculation using a formula, not using excel. i) A fixed payment loan with annual payments of $163 that matures in three years.