A $25,000 loan is to be repaid with a payment of $4,500 in 1 month, another payment in 8 months and a final payment that is three times larger than the 2nd payment in 1 year. Use today as the focal date. a. Find the 2nd and final payments if interest is 6 4 % p.a. 2nd Payment: Final/3rd Payment: Round to the nearest cent b. Find the amount of interest paid on this loan. Interest Paid: Round to the nearest cent

A $25,000 loan is to be repaid with a payment of $4,500 in 1 month, another payment in 8 months and a final payment that is three times larger than the 2nd payment in 1 year. Use today as the focal date. a. Find the 2nd and final payments if interest is 6 4 % p.a. 2nd Payment: Final/3rd Payment: Round to the nearest cent b. Find the amount of interest paid on this loan. Interest Paid: Round to the nearest cent

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter7: Using Consumer Loans

Section: Chapter Questions

Problem 6FPE

See similar textbooks

Similar questions

Calculating interest and APR of installment loan. Assuming that interest is the only finance charge, how much interest would be paid on a 5,000 installment loan to be repaid in 36 monthly installments of 166.10? What is the APR on this loan?
Cost of Bank Loan Mary Jones recently obtained an equipment loan from a local bank. The loan is for 15,000 with a nominal interest rate of 11%. However, this is an installment loan, so the bank also charges add-on interest. Mary must make monthly payments on the loan, and the loan is to be repaid in 1 year. What is the effective annual rate on the loan (assuming a 365-day year)?
You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.
You have approached your bank for a 30 year mortage loan in the sum of $2,160,000. The bank has agreed to lend you the money at the annual rate of 6.32% a Caluate the montly repayment on this loan b Compute the interest payment for the first month of the loan based on the answer in a.
Fill in an amortaization table for a loan of $9,300 to be paid back over 4 years, at an annual interest rate of 1.2% compounded semiannually. At each step, round your answers to the nearest cent and use these values to calculate the next. Payment Number Payment Amount Payment Amount to Interest Payment Amount to Debe Outstanding Pri 9300 2 3. 4 5. 6. 7. 8.
Prepare an amortization schedule for a five-year loan of $71,500. The interest rate is 7 percent per year, and the loan calls for equal annual payments. If you could show how to solve using a financial calculator that would be greatly apprectiated, thank you. YEAR BEGINNING BALANCE TOTAL PAYMENT INTEREST PAYMENT PRINCIPAL PAYMENT ENDING BALANCE 1 2 3 4 5
Establish loan amortization schedules for 3- year loan of 20.000 (initial loan) with equal payments at the end of each year. The interest rate is 5 percent per year? show how you compute each of the items
A $23,970 loan is to be settled by making payments of $6,999 at the end of every six months. The interest is 7.58% compounded monthly. a) Find the number of payments in the term. N = b) Fill in the missing values of the amortization schedule below. Round off your answers to two decimal places. Enter a positive value for all answers. Payment Number 0 1 2 3 4 Payment Amount ($) PMT FA A A A Interest Portion ($) INT FA A $ Principal Portion ($) PRN $ A $ Loan Balance ($) BAL A A $23,970
A 5-year loan is to be repaid by month-end repayments of 7,000 starting in one month at an interest rate of 1.2% p.a. compounded monthly. Or, it can be repaid by year-end repayments of $X staring in one year. Calculate the yearly repayments $X. Correct your answer to the nearest cent without any units. (Do not use "$" or "," in your answer. e.g. 12345.67)
Assume that interest is the only finance charge. Use financial calculator to answer the questions. How much interest would be paid on a $8,000 installment loan to be repaid in 48 monthly installments of $211.10? Round the answer to 4 decimal places. % per month What is the APR on this loan? Round the answer to 2 decimal places. %
A $400 loan is to be amortized with eight quartely payments over 2 years. If the interest is at J4 = 10% a. Find the quartely payment b. Construct an amortization schedule for this loan payment.