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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3. Complete an amortization schedule for a $38,000 loan to be repaid in equal installments at the end of each of the next 3 years. The interest rate is 7% compounded annually. If an amount is zero, enter "0". Do not round intermediate calculations. Round your answers to the nearest cent. Beginning Balance $ % Interest Year 1 2 3 ɔ. What percentage of the payment represents interest and what percentage represents principal for each of the 3 years? Do not round intermediate calculations. Round your answers to two decimal places. % Principal Payment $ % % % % Interest $ % Repayment. of Principal $ Year 1: Year 2: Year 3: % Why do these percentages change over time? I. These percentages change over time because even though the total payment is constant the amount of interest paid each year is declining as the remaining or outstanding balance declines. Remaining Balance $ II. These percentages change over time because even though the total payment is constant the amount of interest paid…
The interest rate on a $15,300 loan is 9.7% compounded semiannually. Semiannual payments will pay off the loan in nine years. (Do not round intermediate calculations. Round the PMT and final answers to 2 decimal places.) a. Calculate the interest component of Payment 12. $ b. Calculate the principal component of Payment 5. Principal c. Calculate the interest paid in Year 8. Interest paid d. How much do Payments 5 to 8 inclusive reduce the principal balance? Principal reduction Interest
Subject :
Accounting What is the value of the following payment stream 1 year from now, at a simple interest rate of 4.4%. $10,000 3-years ago, $6,000 1.25 years ago, $12,000 due in 3 years, $18,000 due in 5 years. What is the value of the payment stream at the focal date?
Q11 To borrow $1,900, you are offered an add-on interest loan at 6 percent. Three loan payments are to be made, one at four months, another at eight months, and the last one at the end of the year. Compute the three equal payments. (Round your answer to 2 decimal places.) THREE EQUAL PAYMENTS?
Suppose you deposit $1,751.00 into an account today that earns 5.00%. It will take ___ years for the account to be worth $2,806.00. Answer format: Number: Round to: 2 decimal places.
Suppose you borrowed $20,000 at a rate of 9.2% and must repay it in 5 equal installments at the end of each of the next 5 years. How much would you still owe at the end of the first year, after you have made the first payment? O a. $16,000.00 O b. $17,106.89 Oc. $14,831.44 O d. $16,671.44 Oe. $15,266.89
Find the final amount of money in an account if $500 is deposited at 7% interest compounded quarterly (every 3 months) and the money is left for 8 years. The final amount is $ . Round answer to 2 decimal places
What is the amount of ten equal annual deposits that can provide five annualwithdrawals, where the first withdrawal of $2,000 is made at the end of year land subsequent withdrawals increase at the rate of 5% per year over the previous year's if the interest rate is 7% compounded annually?(a) $745(b)$652(c) $1,000(d) $1,563
Find the equated date at which the originat payments are equivalent to the single payment State your answer in years and months (from 0 to 11 months) Original Payments Single Payment $1047 00 due today and $1308.00 due in 4 years Interest Rate 5% Frequency of Conversion semi-annually $2624 59 In year(s) and month's) the single payment will be equivalent to the original payments
Give typing answer with explanation and conclusion a loan of 4415$ borrowed today is to be repaid in three equal installments due in one and a half years, four years, and five years, respectively. what is the size of the equal installments if money is worth 9.2% compounded monthly? The payments are each$?

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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