A loan of £14,000 is repaid by annual payments of £1,400 each at the end of the year.How long does it take to repay the loan on the basis of an interest rate of 1% p.a.?数字yearsEnter an answer correct to 2 decimal placesSuppose the payment at t = 10 is increased to repay the loan (a balloon payment).What is the value of the payment at t = 10?£ 数字Enter an answer correct to 2 decimal placesAlternatively, the loan may be repaid via a payment at t = 11 (a drop payment).What is the value of the payment at t = 11?£ 数字Enter an answer correct to 2 decimal places

Using time value of money annuity formulas we can solve these questions. 1. Using the below formula…

Answered: A loan of £14,000 is repaid by annual…

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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A loan of £13,000 is repaid by annual payments of £1,600 each at the end of the year. How long does it take to repay the loan on the basis of an interest rate of 7% p.a.? Number years Enter an answer correct to 2 decimal places Suppose the payment at t = 12 is increased to repay the loan (a balloon payment). What is the value of the payment at t = 12? £ Number Enter an answer correct to 2 decimal places Alternatively, the loan may be repaid via a payment at t = 13 (a drop payment). What is the value of the payment at t = 13? £ Number Enter an answer correct to 2 decimal places
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A debt of $4033 with interest at 8.91% compounded monthly is to be repaid by equal payments at the end of each month for 5 years. What is the principal repaid (PRN) in the first payment? PMT INT Payment Number 10 Answer: PRN ? BAL 4033
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A loan of £14,000 is repaid by annual payments of £1,400 each at the end of the year. How long does it take to repay the loan on the basis of an interest rate of 1% p.a.? 数字 years Enter an answer correct to 2 decimal places