A customer repays a loan of 22,000 that has an effectiveannual interest rate of 5.15% by making payments of 2,200 atthe end of each year for 11 years, followed by payments of1,000 at the end of each year for as long as necessary, until afinal payment of X of less than 1,000, made one year afterthe last regular payment of 1,000, repays the loan. Find X.a) 208 b) 295 c) 381 d) 468 e) 555

We take loans to buy large ticket items that otherwise we cannot afford. The loan is then repaid by…

Answered: A customer repays a loan of 22,000 that…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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1) A 20-year loan of $1,100 at an effective annual interest rate of 7% is repaid with payments at the end of each year. Each of the first ten payments equals 150% of the amount of interest due. Immediately after the tenth payment, you take out a 10 year loan with payments $100 at the end of each year and effective annual interest rate of i and use this loan to pay off your original loan. Find i.
Prepare an amortization schedule for a three-year loan of $117,000. The interest rate is 8 percent per year, and the loan calls for equal annual payments. How much total interest is paid over the life of the loan? Note: Leave no cells blank. Enter '0' where necessary. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Year 1 2 3 $ Beginning Balance 117,000.00 Total Payment Total interest Interest Payment Principal Payment Ending Balance
1. A borrower takes out a loan of 84,000 at an annual effective discount rate of 6%. The loan is to be repaid with annual payments of 10,000. The first payment is due four years after the loan is taken out. Calculate the amount of the drop payment. (7,673.79)
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
Can you help me to find the full repayment for this question, please?
1
am. 25.
You deposit $8000 in year 1, $7500 in year 2, and amounts decreasing by $500 per year through year 15. At an interest rate of 15% per year, determine the annual worth equivalent through year 1 to 15. Select one: O a. 4540.89 O b. 10282.48 c. 9862.73 O d. 6137.27 O e. 5717.52
A Man borrows Php 2000 for 6 years at 8 %, to be repaid in a lump sum at the end of 6 years. At the end of 6 years, the Man renews the loan for the amount due plus Php 2000 more for 2 years at 8 %. What is most nearly the amount of the loan renewal? a. Php 5 506.54 b. Php 4 371.08 c. Php 3 173. 70 d. Php 2 871.61
A company borrows $159,300 from a bank. The interest rate on the loan is 6 percent compounded semiannualy. The company agrees to repay the loan in equal semiannualy installments over the next five years. The first payment is to be made six months from now. (Use factor table in Appendix B for calculation) Required 1: What is the amount of each semiannual payment? $ Required 2: In the first payment, what is the amount of interest cancelled? $ Required 3: In the fifth payment, what is the amount of loan paid net of interest? $ Required 4: In the last payment, what is the amount of interest cancelled? $ Required 5: Assume the debt contract has the option to make one extraordinary payment of up to 20% of the principal. If the company decides to exercise the right and make the extra payment together with the 8th payment, how much it must pay in dollars at the 9th payment to pay off the loan? $
2 only

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