Arman will pay back a P450,000 loan at the end of 26 months. This loan has an annual simple discount rate of 7%. How much money does Arman actually receive from the bank? A. P68,250 B. P381,750 C. P518,250 D. P581,750
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- A BANK CHARGES 15% SIMPLE INTEREST ON A P500.00 LOAN. HOW MUCH WILL BE REPAID IF THE LOAN IS PAID BACK IN ONE LUMP SUM (FUTURE AMOUNT) AFTER THREE YEARS? O a. P572.00 O b. P752.00 O c. P725.00 O d. P275.00A consumer takes out a loan with monthly payments of €500 for a period of four years with first payment made today. Assuming an annual discount rate of 3.5%, compounded monthly, the present value of the loan is closest to:A. €22,038.74. B. €22,365.36. C. €22,430.59.Jeanelle is planning to borrow money amounting to ₱ 250,000.00 Limbon Rural Bank is offering 1.25% compounded semi – annually, while Buli Cooperative Bank offers 1% compounded monthly. 11.How much will be the maturity value after 5 years if he borrows from Limbon Rural Bank? a. ₱ 266,071.86 b. ₱ 207,660.68 c. ₱ 367,071.88 d. ₱ 376,716. 66
- A loan of $5000 is taken out today. It is due with interest at j4 = 8% in 2 years. Instead, the borrower negotiates with the lender to pay $2500 in 1 year and $X in 3 years. If the lender can reinvest any payment at j₂ = 5%, what is the value of X? OA. $3038.93 OB. $2493.59 OC. $3581.68 D. $3395.34Jeanelle is planning to borrow money amounting to ₱ 250,000.00 Limbon Rural Bank is offering 1.25% compounded semi – annually, while Buli Cooperative Bank offers 1% compounded monthly. 12.How much will be the maturity value after 5 years if he borrows from Buli Cooperative Bank? a. ₱ 207,560.78 b. ₱ 262,812.30 c. ₱ 376,431.54 d. ₱ 386,221.32 13.What will be the interest after 5 years if he borrows from Limbon Rural Bank? a. ₱ 126,716.66 b. ₱ 117,071.88 c. ₱ 42,339.32 d. ₱ 16,071.86 14.What will be the interest after 5 years if he borrows from Buli Cooperative Bank? a. ₱ 136,221.32 b. ₱ 126,431.54 c. ₱ 12,812.30 d. ₱ 2,812.53 15.Which bank offers the smaller interest? a. Both b. None c. Limbon Rural Bank d. Buli Cooperative BankA bank offers a home buyer a 25-year loan at 7% per year. If the home buyer borrows $150,000 from the bank, how much must be repaid every year? A. $15,445.90 B. $12,871.58 C. $20,594.53 D. $18,020.21
- A bank offers a home buyer a 30-year loan at 6% per year. If the home buyer borrows $140,000 from the bank, how much must be repaid every year? OA $16,273.36 OB. $12,205.02 OC. $10,170.85 OD. $14,239.19Assume you borrow $10,000 today and promise to repay the loan in two payments, one in year 2 and the other in year 4, with the one in year 4 being only half as large as the one in year 2. At an interest rate of 10% per year, the size of the payment in year 4 will be closest to:a. $4280b. $3975c. $3850d. $2335Suppose that you borrow$ 12000 at interest rate of 5% per year. If you must be repaid the loan in equal end of year payments over the next 4 years, how much must you repay at the end of each year? O a. $3672 Ob. $3384 Oc. $2672 O d. $2384
- A man wants to recieve P800 immediately and pay it back in one year. The bank charges a simple discount of 6% payable at once. How much must be barrowed? What is the rate of interest?4. On 1/1/21 we sell equipment and accept a 3-year note receivable for $36,500. The market value is $36,500. Payments of $13,655 include both principal and interest and are to be made annually starting on 1/1/22. The present value of the payments is $36,500. The bank would require the purchaser to pay interest of 6% in order to borrow from them. The equipment cost us $90,000 and had a book value of $40,000. Note: Be sure to show the date of each journal entry. The 'right' journal entry on the 'wrong' date is wrong. a. Prepare an amortization table b. Prepare the journal entry for 1/1/21 c. Prepare the journal entry for 12/31/21 d. Prepare the journal entry for 1/1/22 Amortization table: Journal entries: Debits Credits 1/1/21 12/31/21 1/1/22Everett's Electronics is receiving a senior bank loan with the following terms: $6MM principal, 5.6% interest rate, 7 year loan term, 0.75% commitment fee, and a 1% closing fee. What is the expected annual return to the lender? A. 5.85% B. 6.85% C. 5.91% D. 6.2%