Exercise_04 1) You are owed payments of $400 due today, $500 due in five months, and $618 due in one year. You have been approached to accept a single payment nine months from now with interest allowed at 12% p.a. How much will the single payment be? Now (1 + rt) $400 5 Months $500 = 9 months 4 months 9 Months 1 Year Focal date $618 = 3 months

Exercise_04 1) You are owed payments of $400 due today, $500 due in five months, and $618 due in one year. You have been approached to accept a single payment nine months from now with interest allowed at 12% p.a. How much will the single payment be? Now (1 + rt) $400 5 Months $500 = 9 months 4 months 9 Months 1 Year Focal date $618 = 3 months

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

See similar textbooks

Similar questions

Assume that you take out a $3000 loan for 47 months at 6.5% APR. How much total interest will you have paid at the end of the 47 months? (Round your answer to the nearest cent.) $ 3631.12
You borrow $5000 now and agree to pay this whole amount back in three payments Poyment 1. SX in 2 months. Payment 2. $2X in 6 months Payment 3. $2X in 10 months a) Determine X if (yearly) interest is at 11.0% compounded monthly. b) Determine X if (yearly) interest is at 11.0% compounded continuously, Note: Do not use your calculator for this problem; type in an expression which represents the exact answer for parts a) and b). You must convert interest rate to the exact values, for example 10.1% = 101 1000
Assume you take out a $2000 loan for 30 months at 9% APR. What is the monthly payment? (Round your answer to 2 decimal places.) N: months I %: P.V: $ PMT: $ F.V: 0 P/Y: 12 C/Y: 12
Payments of $657 and $1000 due 2 years ago and today respectively are to be replaced by two $1000 payments. If the first of the two $1000 payments is due in one year, and the interest rate is 3.6% compounded monthly, then to the nearest month, in how many months is the second $1000 payment due? Use 1 year from today as vour focal dato
Consider a loan of $7000 with an APR of 9% and a loan term of 10 years. Complete parts (a) through (c) below. a. Use technology to construct a table showing the interest payment and loan balance after each month. Verify that, with monthly payments of $88.67, the loan balance reaches $0 after 120 months. (Do not round until the final answer. Then round to the nearest cent as needed.) Month Interest Principal Balance S7000.00 s6963.83 $52.50 s36.17 1 119 120
You are considering taking out a loan of $10,000.00 that will be paid back over 9 years with quarterly payments of $360.02. If the interest rate is 5.9% compounded quarterly, what would the unpaid balance be immediately after the eleventh payment? The unpaid balance would be $ (Round to 2 decimal places.) Submit Question
You borrow $5000 now and agree to pay this whole amount back in three payments: Payment 1. $X in 3 months. Payment 2. $2X in 7 months. Payment 3. $2X in 12 months. a) Determine X, if (yearly) interest is at 11.0% compounded monthly. b) Determine X, if (yearly) interest is at 11.0% compounded continuously. ANSWER IN FRACTION FORM PLEASE
Advanced Math Payments of $657 and $1000 due 2 years ago and today respectively are to be replaced by two $1000 payments. If the first of the two $1000 payments is due in one year, and the interest rate is 3.6% compounded monthly, then to the nearest month, in how many months is the second $1000 payment due? Use 1 year from today as your focal date.
You are considering taking out a loan of $7,000.00 that will be paid back over 12 years with every 2 months payments of $149.54. If the interest rate is 7.7% compounded every 2 months, what would the unpaid balance be immediately after the fifteenth payment? Round answers to 2 decimal places.
Assume that you take out a $2000 loan for 30 months at 9.5% APR. what is the monthly payment round to the nearest cent - $75.16 Make payment for every months 30 months of interest payment- $2254.8 Make payment you calculate every month for 30 months what is the dollar amount interest - $225.8 I need help with this question If you make the payment you just calculate every month for 30 months, what is the percentage of interest paid altogether? Round the percentage to one decimal place?
Suppose you take out a loan for $7,000, at 12% ordinary interest. If the amount of interest is $672, what is the time period? (Round any fraction to the next higher day.) O280 days O 284 days 288 days O 292 days
One of your customers has just made a purchase in the amount of $26,400. You have agreed to payments of $550 per month and will charge a monthly interest rate of 1.38 percent. How many months will it take for the account to be paid off? Multiple Choice 48.00 months 85.32 months 79.23 months 73.95 months 37.08 months