Problem #5: A loan of $40,000 is paid off in 36 payments at the end of each month in the following way:Payments of $1000 are made at the end of the month for the first 12 months.Payments of $1000 + x are made at the end of the month for the second 12 months.Payments of $1000 + 2x are made at the end of the month for the last 12 months.What should x be if the nominal monthly rate is 8%?

A loan refers to a contract where a borrower receives a sum from a lender on the promise of…

Answered: A loan of $40,000 is paid off in 36…

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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Problem #5: A loan of $55,000 is paid off in 36 payments at the end of each month in the following way: Payments of $1375 are made at the end of the month for the first 12 months. Payments of $1375 + x are made at the end of the month for the second 12 months. Payments of $1375 + 2x are made at the end of the month for the last 12 months. What should x be if the nominal monthly rate is 10.4%? Problem #5: 53625.00 Answer correct to 2 decimals.
1. A business loan is amortized constantly through 35 monthly rents, if the first rent is L 8,850 and the rate is 18% compounded by months. What is the value of the credit if before starting the 35 constant amortization rents you make 10 payments of L 5,000.00. Make the amortization table in its first 10 lines and the last 5. How much is the total interest generated?. do the exercise in excel
Assume that you take out a $2000 loan for 30 months at 9.5% APR. what is the monthly payment round to the nearest cent - $75.16 Make payment for every months 30 months of interest payment- $2254.8 Make payment you calculate every month for 30 months what is the dollar amount interest - $225.8 I need help with this question If you make the payment you just calculate every month for 30 months, what is the percentage of interest paid altogether? Round the percentage to one decimal place?
5: A loan of $40,000 is paid off in 36 payments at the end of each month in the following way: Payments of $1000 are made at the end of the month for the first 12 months. Payments of $1000 + x are made at the end of the month for the second 12 months. Payments of $1000 + 2x are made at the end of the month for the last 12 months. What should x be if the nominal monthly rate is 8%?
Task: A loan of £1800 is to be repaid with 12 equal monthly instalments. The nominal rate of interest i(12) for the transaction is 6% per annum convertible 12-thly. Find the amount of each monthly repayment, assuming that payments are made at the end of each month, at the beginning of each month. Answer: Let the unit of time be months. Then the (effective = nominal) rate of interest per unit time is (blank). Let the monthly repayment in £ be X. Then (blank) = X (v + v^2 + ... + v^12) = X a12] We calculate the present value of annuity: (blank) Thus X = (blank)
PROBLEMS 1. What is the annual rate of interest if P265 is earned in four months on an investment of P15,000? Ans. 5.3% 2. A loan of P2,000 is made for a period of 13 months, from January 1 to January 31 the following year, at a simple interest rate of 20%. What future amount is due at the end of the loan period? Ans. P2.433.33 3. If you borrow money from your friend with simple interest of 12%, find the present worth of P20,000, which is due at the end of nine months. Ans. P18.348.62
A payday loan is made for six weeks, where the amount of the interest owed per $100 borrowed is $20. If you borrow $500 for six weeks how much do you owe at the end of six weeks and what is the APR for this transaction?
1. A loan of $14,400 is to be repaid in end-of-the-quarter payments of $600. How many payments are required to repay the loan at 10.5% compounded quarterly? 2. Scheduled payments of $1,010 due five months ago and $1,280 due today are to be repaid by a payment of $615 in four months and the balance in seven months. If money is worth 7.75% p.a. and the focal date is in seven months, what is the amount of the final payment?
Suppose a bank offers to lend you $10,000 for 1 year on a loan contract that calls for you to make interest payments of $350.00 at the end of each quarter and then pay off the principal amount at the end of the year. What is the effective annual rate on the loan? 14.75% 13.28% 12.39% 11.21% 15.34%
Finance You have just taken a car loan of $15,000. The loan is for 48 months at an annual interest rate of 15% (which the bank translates to a monthly rate of 15%/12 = 1.25%). The 48 payments (to be made at the end of each of the next 48 months) are all equal. Calculate the monthly payment on the loan. In a loan table calculate, for each month, the principal remaining on the loan at the beginning of the month and the split of that month’s payment between interest and repayment of principal. Show that the principal at the beginning of each month is the present value of the remaining loan payments at the loan interest rate (use either NPV or the PV functions).
Suppose you are borrowing $25,000 and makingmonthly payments with 1% interest. Show that themonthly payments should equal $556.11. The keyrelationships are that for any month t(Ending month t balance)= (Ending month t - 1 balance)- ((Monthly payment) - (Month t interest))(Month t interest) = (Beginning month t balance)x (Monthly interest rate)Of course, the ending month 60 balance must equal 0.
A payday loan is structured to obscure the true interest rate you are paying. For example, you pay a $15 "fee" for a two-week $180 payday loan (when you repay the loan in two weeks, you pay $180+$15). What is the effective annual interest rate for this loan? Assume 26 bi-weekly periods per year. Enter your answer as a decimal, rounded to 4 decimal places. Your Answer:

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