2.A certain loan was to be amortized based on the schedule below at 15% interest. What is the equivalent annual uniform payment of the loan? End of Year Payment 1 P 7,000 2 P 6,500 3 P 6.000 4 P 5,500 5 P 5.000 6 P 4,500 7 P 4,000 a. P 5365.80 b. P 5333.00 c. P 6475.12 d. P 5775.08 PLEASE SHOW YOUR SOLUTIONS. THANK YOU

2.A certain loan was to be amortized based on the schedule below at 15% interest. What is the equivalent annual uniform payment of the loan? End of Year Payment 1 P 7,000 2 P 6,500 3 P 6.000 4 P 5,500 5 P 5.000 6 P 4,500 7 P 4,000 a. P 5365.80 b. P 5333.00 c. P 6475.12 d. P 5775.08 PLEASE SHOW YOUR SOLUTIONS. THANK YOU

Fundamentals of Financial Management (MindTap Course List)

15th Edition

ISBN:9781337395250

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter16: Working Capital Management

Section: Chapter Questions

Problem 8Q: Define each of the following loan terms, and explain how they are related to one another: the prime...

See similar textbooks

Similar questions

A loan is to be amortized by n level annual payments of X where n > 5. You are given (1) The amount of interest in the first payment is 604.00 (2) The amount of interest in the third payment is 593.75 (3) The amount of interest in the fifth payment is 582.45 Calculate X.
3. A debt of P3,500 is to be amortized by 6 equal semiannual payments with interest at 6%compounded semiannually. What is the total interest to be paid during the term of the loan?
2 A debt of P75,000 is to be amortized by giving payment of P15,000 at the end of each quarter at 3% simple interest every quarter. Construct the amortization schedule. а. Amount Payment Number of Payment Payment on Interest Payment on Principal Balance b. How much of the third payment is allotted for the interest? c. How much of the third payment is allotted for the principal? d. How much is the balance after the third payment? How many payments are needed to settle the debt? е. f. How much is the concluding payment? g. Find the total interest to be paid.
In an amortization table for a four-year loan of $45,280, given an interest rate of 11%, how much will the principal payment be in the second year if the loan calls for equal payments? Select one: a.$15222.90 O b.$10,448.32 O c.$15,593 d.$10,671.69
A LOAN OF P80,000 IS MADE FOR A PERIOD OF 18 MONTHS AT A SIMPLE INTEREST RATE OF 10%. WHAT DUE AT THE END OF THE LOAN PERIOD? O a. P92,100.00 O b. P93,000.00 O c. P92,020.00 O d. P92,000.00
10) Compute the simple interest and final amount of each loan Principal Rate Time P 400 7% 1 year P 640 9% 3 months P 985 10% 180 days (ordinary time period) 60 days (exact time period) P 850 6% ABCD Interest ? ? ? ? Final amount ? ? ? ?
A loan of X is repaid with level payments of R payable at the end of each year for n years. You are given: (i) The interest paid in year 1 is 797.50. (ii) The principal repaid in year n-4 is 865. (iii) The principal outstanding at the end of year n-1 is 1,144.50. Determine X. A B с D E 9,500 10,000 10,500 11,000 11,500
What will be the compounded amount on a loan of P1.500 at 12% interest compounded quarterly for 1 year? of O P16.822.63 O P1.690 O Pl,688.26 O P16.860
Ma3. A loan is amortized by level payments made at the end of each quarter, for 25 years: The monthly rate is 1%. The principal in the 29th payment is 8370. Find OLB69 OA. 1,115,185.53 OB. 1,101,108.22 OC. The correct answer is not shown here. OD. 1,430,370.34 OF. 1,301,108.22
A loan is to be amortized by a group of five end of year payments forming an ascending arithmetic progression. The initial payment was to be P 5,000 and the difference between successive payments was to be P500. But the loan was renegotiated to provide for the payment of equal rather than uniformly varying sums. If the interest rate of the loan was 15%, what was the annual payment? P 5861 P 5530 P 5420 P 5713
Find the payment necessary to amortize the following loan. S7500, 8.8% compounded semiannually; 18 semiannual payments The payment is S (Round to the nearest cent as needed.)
This questi Consider a loan of $7700 at 6.8% compounded semiannually, with 18 semiannual payments. Find the following. (a) the payment necessary to amortize the loan (b) the total payments and the total amount of interest paid based on the calculated semiannual payments (c) the total payments and total amount of interest paid based upon an amortization table. (a) The semiannual payment needed to amortize this loan is $ 545.94. (Round to the nearest cent as needed.) (b) The total amount of the payments is $ 9827.07 (Round to the nearest cent as needed.) The total amount of interest paid is $ 2127.07 (Round to the nearest cent as needed.) (c) The total payment for this loan from the amortization table is $ (Round to the nearest cent as needed.) The total interest from the amortization table is $ (Round to the nearest cent as needed.)