A debt of $4000 due now is to be repaid by a payment of $1,000 in 1 year, a payment of $2,000 in 3 years, and a final payment in 5 years. If the interest rate is 6% compounded annually, how much is the final payment?
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A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…
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A: In this we have to calculate present value of both option.
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A: The figure is shown below for considering the time period:
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- . A debt of P100,000 is to be discharged by ten semi-annual payments, the first to be made 6 months after the loan is given. The debt will be discharged by 5 equal payments each P10,000 and by 5 other equal payments of such amount that the final payment will liquidate the debt. If interest is 12% compounded semi-annually, what is the amount of the last 5 payments? Construct an amortization schedule.A debt of RM600 due in three years and RM800 due in four years is to be repaidby a single payment two years from now. If the interest rate is 8% compoundedsemiannually, how much is the payment?What would the required payment be on a K1,000 loan that is to be repaid in three equal installments at the end of each of the next three years if the interest rate is 10%?
- A debt of $600 is due 3 years from now and $800 due 5 years from now, is instead to be paid off by two payments: $500 nowand a final payment at the end of 6 years. What would this payment be if an interest rate of 6% compounded quarterly is assumed?A loan of $8000 will be discharged by a cash payment of $3200 now; $1800 at the end of 4 years; $600 at the end of 6 years, and the last payment at the end of 7 years. If money is worth 4% compounded annually, what is the size of the last payment?How large must each annual payment be if the loan is for $50, 000? Assume that the interest rate remains at 10% and that the loan is still paid off over 5 years.
- A debt of R7000 is to be paid off by a payment of R2000 now, and two equal payments two consecutive years from the second year. If the interest rate is 6% compounded semi-annually, how much is each of the two payments?When interest is charged on the unrecovered balance, if you borrow $10,000 at 10% per year interest and repay the loan in equal payments over a 5-year period, the payment amount is $2638 per year. How much will the annual payment be if the interest rate is charged on the initial loan amount instead of the unrecovered balance?A debt of $3000 is to be paid off in 6 years from now, but instead, it will be settled through three payments: Year 0 3 5 Payment 500 1500 X What will this final payment (X) be if we assume a 6% interest compounded annually?
- What annual interest rate paid for if: a) Payment of $5,000 per year for 6 years will repay an original loan of $25,000? b) Thirty-six monthly deposits of $100 will result in $4,500 at the end of three years? What is the effective interest rate for this case?"If a loan of 1 million is made for 7 days at a rate of 5% per annum, how much interest would be received? (Assume 365/365 days in the year)What is the present worth of annually payments ( 2000 $ ) if the first payment will deposit after five from now , and the last one will deposit at begin of the fifteenth year ? Assume interest rate ( 7 % ) ?