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

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

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

Related questions

Q: A debt of $4,000.00 is to be paid off with 8 equal semi-annual payments. If the interest rate is 15%…

A: Repaying debt in equal instalments is a type of annuity. That is any number of payments of equal…

Q: A debt of P10,000 with interest at the rate of 20% compounded semiannually is to be amortized by 10…

A: A deferred annuity is the annuity plan under which payment is accumulated for a certain period and…

Q: Miller borrows $310,000 to be paid off in three years. The loan payments are semiannual with the…

A: Instalment= P x R x (1+R)^N / [(1+R)^N-1] N= 3 years*2 = 6 periods R= 10%/2 = 5%

Q: A debt can be repaid by payments of $3125.00 today, $2770.00 in two and half years and $4600.00 in…

A: To Find: Single Payment to settle debt four years from now

Q: 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…

A: Total debt =$4000 interest rate =6% First payment $1000 in one year Second payment $2000 in three…

Q: An interest-only ARM is made for $200,000 for 30 years. The start rate is 5 percent and the borrower…

A: a) Computation:

Q: Two debts, the first of $1300 due three months ago and the second of $2000 borrowed two years ago…

A: So you need to repay 2 debts in 1 payment. Let us break this down into 2 calculations. First DebtThe…

Q: A debt of $19,000 is being repaid by 15 equal semiannual payments, with the first payment to be…

A: Loan = P = $19,000 15 equal semiannual payments Interest = r = 5% compounded semiannually…

Q: A person has made an arrangement to borrow $1,000 now and another $1,000 two years hence. The entire…

A: Interest charged on the principal amount and the interest accrued is known as Compound Interest. It…

Q: a. Set up an amortization schedule for a GHȼ 25,000 loan to be repaid in equal installments at the…

A: Annual Payment = Principal × Rate (1+rate )n/ (Rate + 1)n -1 Loan Amount = GH¢ 25,000 Time (n) = 5…

Q: Set up an amortization schedule for a Rs 100,000 loan to be repaid in equal installments at the end…

A: in this we have to calculate present value FACTOR and find out equal annual payment.

Q: A debt of P40,000, whose interest rate is 15% compounded semiannually, is to be discharged by a…

A: Given, The debt amount is P40,000 Interest rate 15%

Q: Suppose a borrower makes a $100,000 loan with annual payments at a 10 percent rate and a 10-year…

A: Annuity: An annuity is the series of payments which is received or paid for a fixed period of…

Q: A loan is amortized over 7 years with monthly payments at a nominal interest rate of 5% compounded…

A: The series of cash flows given here is a form of annuity with growth. However, the growth rate here…

Q: Prepare an amortization schedule for a three year loan of P90,000. The interest rate is 10% per…

A: Amortization means paying the debt over the period through regular payments. Amortization schedule…

Q: A sum of P10,000 was invested now and left for 6 years, at which this time the principal is…

A: Invested amount (P) = P 10,000 Interest rate (R) = 15.8% Period till first withdrawal (N1) = 6 Years…

Q: A loan of 200000€ will be repaid with %12 nominal interest. convertible over 3 months. the debt is…

A: Loan Amount is 200,000 Nominal interest rate convertible over 3 months is 12% Time period is 72…

Q: A debt is amortized for 4 years by a series of payments that decreases annually by ₱ 500, the first…

A: Answer: Year payment {(1+i)^n-1/i} Uniform payment 1 5000 1.00 5000.00 2 4500 2.05 9225.00…

Q: A $13,000 loan is to be amortized for 10 years with quarterly payments of $414.98. If the interest…

Q: A debt of $17,000 is being repaid by 17 equal semiannual payments, with the first payment to be made…

A: Repayment of debt is made in fixed installments which include interest payment and also part of…

Q: To pay off a P100,000 loan , it is required that 20 semi -annual payments that is increased by…

A: A) P2,854 Explanation:

Q: How much interest is payable each year on a loan of $4,000 if the interest rate is 10% (simple…

A: Following is the answer to the given questions

Q: Prepare an amortization schedule for a three year loan of P90,000. The interest rate is 10% per…

A: A loan refers to borrowed money taken by a person from a lender in case of a shortage of money. It…

Q: A sum of P1,000.00 is invested now and left for eight years, at which time the principal is…

A: The amount of withdrawal at the end of the 16th year will include the interest plus the…

Q: A debt of P10,000 with 10% interest compounded semi-annually is to be amortized by semi-annual…

A: The amount can be calculated with the help of present value of annuity function.

Q: A debt of P10,000 with yearly interest of 24% is to be amortized over the next 6 years with the…

A: Debt paid in equal annual payment from year 1 to year 6. Amortization table used to display the…

Q: A debt of P40,000, whose interest rate is 15% compounded semiannually, is to be discharged by a…

A: Equally installments means an equal amount is repaid. Equally installment includes the interest…

Q: A loan of $4000 at 7.5% compounded monthly requires three payments of $1000 at 6, 12, and 18 months…

A: Compound interest means the interest on the principal plus the accumulated interest on the previous…

Q: A debt of $24,000, which is due 8 years from now, is instead to be paid off by four payments: $8000…

A: Compound interest is defined as an addition of an interest to he sum of the loan that is principal.…

Q: A sum of P1,000 is invested now and left for eight years, at which time the principal is withdrawn.…

A: Invested amount or principal amount is P1,000 Effective Annual interest rate is 5% Principal is…

Q: A debt of P10,000 with 10 % interest compounded semi-annually is to be amortized by semi-annual…

A: Debt amount (PV) = P 10,000 Interest rate = 10% Semi annual interest rate (r) = 10%/2 = 5% Period =…

Q: what was the corresponding interest rate if it compounded quarterly?

A: Interest Rate: It is the rate for computing either the present value of an amount or the future…

Q: A loan, amortized over 7 years, is repaid by making payments of $1,600 at the end of every month. If…

A: Present value is the current value of the amount of money or cash flows that are expected in the…

Q: Monthly payments are to be made against an $850,000 loan at 7.25% compounded annually with a 15-year…

A: Note: As per Bartleby guidelines, only the first 3 subparts can be solved. Please post any other…

Q: A P28,000 debt at 15% interest compounded semi-annually is to be amortized at P2,250 every 6 months.…

A: The following is the amortization table. From this we can answer the 3 questions. Please note the…

Q: Consider a floor that has a principal amount of $10 million. The tenor is 3 months, the life of the…

A: The London Interbank Offer Rate, as well as LIBOR, seems to be the interbank market's reference…

Q: A debt is amortized for 4 years by a series of payments that decreases annually by ₱ 500, the first…

A: First payment = P 5000 Annual decrease in payment = P 500 Annual interest rate = 5% Period = 4 Years

Q: A P15,000 loan at 12% compounded quarterly is to be amortized every 3 months for 12 years. Find the…

A: Here, To Find: Quarterly payment =? Construction of amortization schedule =?

Q: An obligation will be amortized by quarterly payments of P5,000 for 10 years. If interest is 6%…

A: Given a certain rate of return, present value (PV) is the current value of a future sum of money or…

Q: A N$1000 loan is repaid by annual payments of N$150, plus a smaller final payment. The first payment…

A: solution : given loan amount =$1000 interest rate =10% payment at end of each year…

Q: A loan of P8,000 will be amortized by payments at the end of each quarter for 8 years and 9 months.…

A: To solve this problem we will have to find the periodic quarterly payment and then make a loan…

Q: Monthly payments are to be made against an $850,000 loan at 7.25% compounded annually with a 15-…

A: An amortizing loan is a type of debt that requires regular monthly payments. Each month, a portion…

Q: Find the semi-annual payment of a P15,000 debt to be amorlized by 5 equal payments at the end of…

A: Solution:- Given, Loan amount = PV = P15,000 Number of payments = n = 5 Interest rate = i = 15%/2…

Q: A debt of Php 10,000.00 with interest at the rate of 20% compounded semi-annually is to be amortized…

A: Accrued Interest- Accrued interest refers to the interest which has not been paid but has already…

Q: A debt of P15,000.00 with an interest at the rate of 16% compounded semi-annually is to be amortized…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: A P35,000 debt is to be paid off in eight equal yearly payments, each combining an amortization…

A: Effective annual interest rate(EAR) refers to the actual interest rate which is received on deposits…

Q: A $11,000 loan is to be amortized for 10 years with quarterly payments of $351.14. If the interest…

A: Loan amortization is a type of loan that needed borrower to make scheduled periodic payments applied…

Q: A basic ARM is made for $180,000 at an initial interest rate of 6 percent for 30 years with an…

A: Mortgage is long-term loan contract which is used to buy fixed asset generally home. Mortgage is…

Q: A $17,000 loan is to be amortized for 10 years with quarterly payments of $568.26. If the interest…

A: Loan amount = $ 17000 Period = 10 Years Number of quarterly payments = 10*4 = 40 Quarterly payment…

Question

. 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.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

2. Find the semiannual payments to repay a debt of P100,000 in 5 equal payments with interest at 12% compounded semiannually, the first of these payments to start one year after the loan is made. Construct an amortization schedule.
Set up an amortization schedule for a Rs 100,000 loan to be repaid in equalinstallments at the end of each of the next 5 years. The interest rate is 10%compounded annually. b. What percentage of the payment represents interest and what percentage represent principal for each of the 5 years? Why do these percentages change over time?
Use the Amortization Table to determine the payment required to amortize a loan of $7500 at an annual interest rate of 12% with a term of 15 years. Payments are to be made monthly.What is the amount of each payment?
Show your complete solution in a word file. A debt of P350,000 is to be amortized by 6 equal semi-annual payments with interest at 6% compounded semi-annually. Find the periodic payment and construct an amortization schedule.
Create an amortization table for a 15-yr fully amortizing, 6% loan for $10 million. Assume annual payments. What is the loan balance after year 5?
An amortized loan of P100,000 with an interest rate of 8% per annum will be paid quarterly for 1 and 1/2 years. Determine the periodic payment. Then construct the amortization schedule.
A $400 loan is to be amortized with eight quartely payments over 2 years. If the interest is at J4 = 10% a. Find the quartely payment b. Construct an amortization schedule for this loan payment.
A N$1000 loan is repaid by annual payments of N$150, plus a smaller final payment. The first payment is made one year after the time of the loan and construct an amortization schedule and determine the size of the last payment interest rate=10% per annum time=3 years
Prepare an amortization schedule for a three year loan of P90,000. The interest rate is 10% per year, and the loan calls for equal annual payments.
6) A loan of 1000 at a nominal annual interest rate of 10% + x compounded monthly is repaid by four monthly payments, starting one month after the loan is made. The first two payments are amount X each and the final two are amount 3X. Construct the amortization schedule for this loan.
Prepare an amortization schedule for a three year loan of P90,000.The interest rate is 10% per year, and the loan calls for equal annual
Prepare an amortization schedule for a three-year loan of $111,000. The interest rate is 10 percent per year, and the loan calls for equal annual payments. How much total interest is paid over the life of the loan?