A loan is being repaid with 10 payments of RM2,000 followed by 10 payments of RM1,000 at the end of each half-year. If the nominal rate of interest conversion semiannually is 10%, find the outstanding loan balance immediately after five payments have been made.
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(a)
A loan is being repaid with 10 payments of RM2,000 followed by 10 payments of RM1,000 at the end of each half-year. If the nominal rate of interest conversion semiannually is 10%, find the outstanding loan balance immediately after five payments have been made.
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- Set up an amortization schedule for a Rs 100,000 loan to be repaid in equalinstallments at the end of each of the next 5 years. The interest rate is 10%compounded annually. b. What percentage of the payment represents interest and what percentage represent principal for each of the 5 years? Why do these percentages change over time?A loan of £10,000 is repaid in 5 years with quarterly payments made in arrears. The initial payment is of amount P and subsequent payments increase at the end of every year by 2% p.a. compound. The interest rate is 6% p.a. effective. (a) Find the value of P. (b) What is the outstanding balance at the start of the final year? (c) What is the interest component of the first payment in the final year?A loan is to be repaid by an annuity payable monthly in arrears over a 5-year period. The annuity starts at a rate of £200 per month and increases each month by £5. Repayments are calculated using a rate of interest of 8% per annum effective. (i) Calculate the amount of the original loan to the nearest £. (ii) (iii) Calculate the capital outstanding at the end of the first year (after the payment due has been made) to the nearest £0.01. Hence, or otherwise, calculate the capital and interest components of the 13th and 14th payments.
- A loan of £4,000 is to be repaid over 5 years by a level annuity payable monthly in arrears. The amount of the monthly payment is calculated on the basis of an interest rate of 1% per month effective. Find the total capital repaid and interest paid in the first and last month, respectively. Answer: The interest paid in the first month is a) £4000x1.01= £4040 b) £4000x(1-exp(-0.01))=£39.807 c)£4000x0.01= £40 d)£4000x0.12= £480 The repaid capital is a)£0.535 b)£48.9778 c)£49.1771 d)£587.734 In the last month, the interest paid is a)£ 0.00535 b)£0.489778 c) £0.889778 d)0.491771 In the last month, the capital repaid is a)£479.645 b)£431.358 c)£88.088 d)39.8007 They are multiple-choice questionsA loan of £4,000 is to be repaid over 5 years by a level annuity payable monthly in arrears. The amount of the monthly payment is calculated on the basis of an interest rate of 1% per month effective. Task : Find the amount of the loan that has been repaid after 30 months. Answer: The loan outstanding after 30 months is a)L(1+i)^t-x∑_(s=1)^t(1-i)^s b)L(1+i)^t-x∑_(s=2)^t(1+i)^s c)x·a_30] d)a_30] Hence a)£1744.12 b)£1644.12 c)£1603.69 d)£1703.69 has been repaid at that point in time. They are multiple-choice questionsA loan of L is being amortized with payments at the end of each year for 10 years. If vs = 22/30, find expressions for the following in terms of (a) The amount of principal reapid in the first 5 payments. (b) The amount due at the end of 10 years if the final 5 payments are not made as scheduled
- Suppose that one has a bank loan for P15,584.48, which is to be repaid in equal end-of-month installments for 9 years with a nominal interest rate of 0.114 compounded monthly. What is the amount of each payment?A loan of £4,000 is to be repaid over 5 years by a level annuity payable monthly in arrears. The amount of the monthly payment is calculated on the basis of an interest rate of 1% per month effective. Find a) The interest paid in the first month b)The repaid capital c)In the last month, the interest paid and the capital repaid3) A loan of P50k requires quarter payments of P2875 over 10-year period. These payments include both principal and interest. a) what is the nominal interest rate for this loan? b) Determine the amount of unpaid loan principal after 6 years.
- 3. a) Calculate the interest rate applied in a loan of P1000 with repayment of P1100 and duration of 10 months. b) What is the monthly interest, daily interest, equivalent to the yearly interest found in a)?Answer the given problem below. Attach a complete solution. A loan of P5000 is made for a period of 13 months, from January 1 to January 31 the following year, at interest rate of 20%. What future amount is due at the end of the loan period for an (a) ordinary and (b) exact interest rate?A loan taken from Riyadh Bank; needs to be paid off, in N years. If the loan is equal to 40 identical installment payments, calculate N. ASSume the Annual interest rate is 0.6 %.