A loan of $20,000 is to be amortized in 10 level annual payments. The interest rate for the first 3 years is 4% while the interest rate for the subsequent 7 years is 6%. Calculate the loan balance B6 by; (a) the prospective method

Consider a loan of $2.5 million that is paid quarterly over a period of 10 years. Calculate the dollar amount of interest and loan principal repaid corresponding to each payment if the interest rate is 9% per year, compounded quarterly. What is the 5th Quarter Interest and also the 5th Quarter Principal Repayment respectively O a $157,274.15 and $232,276.07 O b. $97,158.12 and $95,032.24 O c. $46,919.62 and $32,752.85 O d. $52,601.74 and $42,841.70

H3. Show proper step by step calculation

Suppose you take a 3/1 interest-only ARM for $100,000, monthly payments, 30-year term. The initial contract rate is 4.00% and the contract rate for year 4 is 6.50%. What is the balance of the loan at the end of year 4? 94,892.15 98,591.88 96,483.13 95,347.22

The principal P is borrowed and the​ loan's future value A at time t is given. Determine the​ loan's simple interest rate r. P​ = ​$2300​, A​ = ​$2722​, t​ = 6 months.



TASK: 2 are mu pare Apply your understanding about the present value and future value of annuities and prepare TWO Loan EMI (EMI = Equated Monthly Installments) payment schedules based on the following instructions: 1. Loan Summary and schedule of Short term loan (20 marks) 2. Loan Summary and schedule of Long term loan (20 marks) Guidelines: 1. Suggested Short term Loan period is 1 year to 3 years 2. Suggested Long term Loan period is 7 years and above 3. Each loan summary should contains following points: a. What type of loan is chosen? b. Why it is chosen? C. Interest rate, number of years (loan period) and loan amount to be assumed and clearly stated d. Starting date and ending date of the loan period is to be mentioned 4. The payment schedule should cover the following: a. Serial No. b. Date (period) c. EMI amount (EMI = Equated Monthly Installments) d. Principal component of the EMI e. Interest component of the EMI f. Interest paid to date g. Principal paid- to date h. Principal…

(Ch 11 #9) There is a loan obligation to pay $1000 one year from today and another $1000 two years from today. Assuming the annual effective rate of interest is 10%, find the following: a) Macaulay duration of the loan. b) Modified duration of the loan. c) Convexity of the loan.

1. A loan with the following terms is being made: Fixed rate, constant payment 9% interest rate $70,000 desired mortgage amount. $1,500 loan discount points paid by the buyer/borrower to the lender 25-year term, monthly payments a. Calculate the APR for federal truth-in-lending purposes (assume that the discount points are paid up front by the borrow and rolled into the loan principal). b. Do you think that the APR calculated in (a) reflects the likely return that the lender will receive over the term of the loan? List specific reasons that the lender's actual return might be different than the APR.

The following is an amortization schedule for a loan of $5000 to be repaid over two years at 7% compounded semiannually (depicted below in the table). Find the value of A, B, C, and D.