Consider a compounding loan plan where the amounts owed at EOYS 3 and 4 are $5,800 and $6.264, respectively. Approximately, what would be the amount of the loan?
Q: Define each of the following loan terms, and explain how they are related to one another: the prime…
A: A loan is in the form of money given to another party who needs funds in exchange for repayment of…
Q: the final or future value of an investment the compounding periods of a loan or investment the value…
A: The final or future value of an investment is called amount. The compounding periods of a loan or…
Q: Please show all equations and work as needed. Make the correct answer clear. If possible, please…
A: The computation of net amount is as follows:Hence, the net amount of funds from the loan is $511560.…
Q: 1. What is the market rate of interest at which the lender can loan proceeds if the borrower prepaid…
A: Market interest rate is the rate which is prevailing in the market at present.
Q: Use the loan amortization table: Purchase price of a used car $5,533, Down payment $1,153, number…
A: Lookup table are used to calculate the loan amortization and are used as shortcuts to calculate the…
Q: What is the amount of compensating balance would be required for a nominal interest rate of 12% to…
A: Nominal interest rate (r) = 12% Effective interest rate (i) = 14.40% Let the compensating balance as…
Q: Give an example of a loan repayment plan.Show at least 3 payment entries including the end of period…
A: The funds acquired by the borrower is repaid either in lumpsum amount at a future date i.e. at the…
Q: Consider a loan of $98,000 at 7% compounded annually, with 12 annual payments. Find the following.…
A: Loan amortization can be defined as the procedure of amortizing the loan in such a way that the loan…
Q: Calculate the table factor, the finance charge, and the monthly payment (in $) for the loan by using…
A: Amount Financed =$6,600 Number of Payments(n) = 36 APR = 11% r = 11%/12 = 0.9167% Monthly Payment =…
Q: What is the actuarial rate for a simple loan of $1,500 that requires a repayment of 2,000 in 5
A: In this we have to calculate effective interest rate by use of present and future value.
Q: Calculate the loan amount on a purchase having a cash price of $47,900 with a down payment of…
A: Down Payment: The down payment is the portion of the purchase price that you pay out-of-pocket (as…
Q: The Loan payoff schedule contains which of the following/s a. annual payment b. All of them
A: A loan payoff schedule is a payment schedule prepared for the loan payments. Whenever a loan is…
Q: A. How much is the amount of the loan? B. How much is the payment on the first period? C. For the…
A: The amount of the loan is the stated loan amount. The interest component can be calculated by…
Q: (a) What is the finance charge (in $) on the loan? 2$ (b) Use Table 13-1 to find what annual…
A: Finance charge refers to the payment made in addition to the borrowed amount. The finance charge…
Q: Choose the correct letter and pls provide the solution thanks A firm’s current assets and current…
A: Current ratio is the ratio between current assets and current liabilities in the business.
Q: ture or false is the add-on method is used to calculate a finance charge of $150.80 on a $2,200…
A: The add-on method of interest is one of the methods of determining the quantum of loan repayments…
Q: What is the amount of compensating balance would be required for a nominal interest rate of 12% to…
A: Borrowings are the loan which is taken by the individual to meet its financial requirements. The…
Q: The total cost of the subsidized loan is S Round your answer to two decimal places, if necessary.
A: Here, Amount of Loan is $50,000 The loan has been taken before 2 years from graduation and has…
Q: Calculate the table factor, the finance charge, and the monthly payment (in $) for the loan by using…
A: Annual percentage rate: It is the annual rate charged on borrowed money.
Q: The following loan was paid in full before its due date. a) Find the value of h using an appropriate…
A: Given: APR = 8.7% Regular Monthly Payment = $214. Number of payments after Payoff (n) =4
Q: ? Why? What if the interest rate is 4% (.04)? Explain. (Hint: you can use the formula for a…
A: Option 1: Present value = $850,000 Option 2: Present value = Annuity * [1 - 1 / (1 + rate)^periods]…
Q: Assuming that you obtain a bank loan for Php. 500,000 with an annual interest payment of 10% of the…
A: Loan = 500,000 Effective Rate = 8% Interest Rate = 10% on principal Present Value = ? Assuming N =…
Q: What type of loan requires both principal and interest payments as you go by making equal payments…
A: Interest-only loan:The borrower only pays the interest on the mortgage through monthly payments for…
Q: In order to borrow $100,000 for a 5% loan on a discount loan basis with a 5% compensating balance;…
A: Whenever an individual is in need of extra funds to finance his or her purchase in case of less cash…
Q: In a discount interest loan, you pay the interest payment up front. For example, if a 1-year loan is…
A: Given: Interest rate = 8.50% Amount borrowed = $42,000 Interest amount = $3,570 Net loan = $38,430
Q: What is the maturity value of a loan of R64 000 earning an interest of R12 733?
A: Maturity value is the sum of principal loan and interest earned during the loan period
Q: a. What was the payment size? Round to the nearest cent b. What was the size of the interest portion…
A: Amortization: It represents the process of paying the loan by making periodic payments. These…
Q: alculate the table factor, the finance charge, and the monthly payment (in $) for the loan by using…
A: The given problem can be solved using PMT function in excel. PMT function computes installment…
Q: Select the correct choice that completes the sentence below. The rebate amount is equal to the…
A: Rebate is a term used in short-selling, which is selling securities that a trader does not own. In…
Q: How can we calculate the total annual interest payment for a credit card debt of $ 1,000?
A: We should pay the credit card bill by the end of credit free period to avoid interest charges upon…
Q: Find the following. (Round your answers to the nearest cent.) Finance Charge Number of Payments…
A: Finance charge is an additional amount which is paid on borrowed amount. It is expenses for the…
Q: (a) What is the rebate fraction of a 36 month loan paid off after the 13th payment? (b) What is…
A: Total loan period = 36 months Months completed =13 months Remainig months = total loan period -…
Q: loan of 15700 was charged a simple discount rate of 4.2%. If the proceeds received were 15463.72,…
A: find the amount of bank discount.:: Bank discount=Proceeds -Maturity value=$15463.72-$15700=238.28$…
Q: Suppose that you took out a loan at 10% interest for 283 days. If the amount of interest was…
A: In this question we need to find the amount of principal borrowed if amount of interest was $930.41…
Q: 1. suppose that you have the capacity to pay, would you rather borrow a loan that is amortized…
A:
Q: Find apr of the loan given the amount of the loan, number and type of payments and the add on…
A: The annual percentage rate would be providing the information as to what is the cost of borrowing…
Q: 1. Based on the information, determine the value of each “ ? “ in the following table Loan principal…
A: We need to compute annual installment amount of loan. This can be computed with the help of PMT…
Q: Simple interest refers to interest on a loan computed as a percentage of the loan amount. Compound…
A: COMPOUND INTEREST IS CALCULATED ON THE PRINCIPAL AMOUNT AND ALSO ON THE ACCUMULATED INTEREST OF…
Q: Calculate the table factor, the finance charge, and the monthly payment (in $) for the loan by using…
A: Here, Amount Finance is $8,800 Number of Payments is 36 APR is 11%
Q: With loans, spreadsheets make it easy to _____. (can be more than 1 of the options listed below) a.…
A: Loan is a value which is borrowed from the other sources like banks and this amount is repaid later…
Q: e the table factor, the finance charge, and the monthly payment (in $) for the loan by using the APR…
A: In this we need to determine the present value factor monthly and from that we can find out monthly…
Q: Rank the following car loan descriptions from highest payment ot lowest payment. The loan amount is…
A: For the calculation purpose, the loan amount is assumed as 1,000.
Q: Hi there, quick question. For an loan with a capital amount of 2500, initiation fee of 315,…
A: Loan is a facility to borrow certain amount of money from the banks and financial institutions at…
Q: ( A)What is the rebate fraction of a 36 month loan paid off after the 12th payment? (b) What is…
A: Rebate fraction can be calculated by using this equation Rebate fraction =Sum of digit of remaining…
Q: How much would one pay in points on a $145,000 loan if 2 points were charged? a. $2,900 b. $2,000…
A: The amount which is paid optionally while taking a loan, especially on a home loan is called points…
Q: Find the APR (true annual interest rate), to the nearest 0.01%, for the loan given below. Purchase…
A: Given, Purchase price $4280 Down payment $350. So, the price paid is $4,280-$350=$3,930
Q: A man loans $10,000, part at 6% annual interest and the rest at 11%. The annual total income from…
A: The various Loans can be taken on various interest rates. This is done to maintain the total…
Q: Find the return on a loan under the following conditions. The base rate on the loan is 5%, the risk…
A: Base Rate (Br) is 5% Risk Premium (RP) is 4% Origination Fees (OF) is 0.5% Compensating Balance…
Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
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- pls refer to the image attached, 1. suppose that you have the capacity to pay, would you rather borrow a loan that is amortized monthly, or one that is amortized quarterly? 2. what is your considerations when availing a loan? (quantitative or qualitative considerations) Discuss.What would the loan payment amount and the interest payed for Kevan’s loan be if the PV=8500, PMT=495.74, FV=0, Rate=6.2, Period=18, Payment Frequency=12, and Compounding=monthly6. Calculating simple interest and APR on a single-payment loan You are taking out a single-payment loan that uses the simple interest method to compute the finance charge. You need to figure out what your payment will be when the loan comes due. The equation to calculate the finance charge is: FsFs = P r t In the equation, FsFs is the finance charge for the loan. What are the other values? P is the amount of the loan. r is the stated rate of interest. t is the term of the loan in . You’re borrowing $4,000 for a year and a half with a stated annual interest rate of 10%. Complete the following table. (Note: Round your answers to the nearest dollar.)
- Suppose that you have the capacity to pay, would you rather borrow a loan that is amortized monthly or one that is amotized quarterly? what are your considerations when availing a loan (qualitative or quantitative) discuss.Consider a loan repayment plan described by the following initial value problem, where the amount borrowed is B(0) = $40,000, the monthly payments are $600, and B(t) is the unpaid balance of the loan. Use the initial value problem to answer parts a through c. B' (+) =0.03B - 600, B(0) = 40,000 a) Find the solution of the initial value problem and explain why B is an increasing solution. B(t) = Why is B an increasing function? O A. The function is increasing because it is an exponential function with a positive coefficient and a negative exponent. O B. The function is increasing because it is an exponential function with a positive coefficient and a positive exponent. O C. The function is increasing because it is an exponential function with a positive exponent. O D. The function is increasing because it is an exponential function with a positive coefficient. b) What is the most that you can borrow under the terms of this loan without going further into debt each month? The…rive loan is below. Payments of $1,987.26 are made monthly. Payment # Payment 1 1,987.26 2 1,987.26 3 1,987.26 Interest Debt Payment Balance 1,604.17 383.09 1,602.41 384.85 1,600.65 386.61 Provide your answer below: X Y Z Calculate the value of z, the balance of the loan at the end of month 3. Give your answer to the nearest dollar. Do not include commas or the dollar sign in your answer.
- With loans, spreadsheets make it easy to _____. (can be more than 1 of the options listed below) a. Calculate the amortization schedule b. Determine the number of remaining loan payments c. Find the loan balance due at any time d. Demonstrate the split between the principal and interest amounts.The of the present values of all the payments required to pay off a loan is equal to the original principal of the loan. square root sum economic rate equivalent paymentCalculate the table factor, the finance charge, and the monthly payment (in $) for the loan by using the APR table. (Round your answers to the nearest cent.) AmountFinanced Number ofPayments APR TableFactor FinanceCharge MonthlyPayment $700 18 16% $ $ $
- Note: Round all answers to the nearest cent when necessary. Calculate the amount financed, the finance charge, and the total deferred payment price (in $) for the following installment loan.Prove the loan payment formula, shown below. PMT=Prn1−1+rn−nt Question content area bottom Part 1 Manipulate the formula shown below to prove the loan payment formula. The left side of the equation is the future value of the principal amount and the right side is the future value of the loan payments. First, solve the equation for PMT. P1+rnnt = PMT1+rnnt−1rnFind the following. (Round your answers to the nearest cent.) FinanceCharge Number ofPayments Frequency Amount Number ofPayments Left $9.10 12 Monthly $15 5 (b) the amount needed to pay off the loan