A person borrows $390 that he must repay in a lump sum no more than 10 years from now. The interest rate is 9.9% annually compounded. The borrower can repay the loan at the end of the any earlier year with no prepayment penalty. What amount will be due if the borrower repays the loan after 1 year? How much would the borrower have to repay after 4 years? What amount is due at the end of the tenth year?

The loan is due at the end of 2 years(balloon loan). It has a balance of $5,000 and an interest rate of 10% that accrues semi-annually. The bank said they will take the present value of the loan. Do you have enough money to pay off the loan?

4. You borrow $720,000 at 4.00% per year compounded monthly and you plan to pay off this loan in equal annual payments starting one year after the loan is made over a period of fifteen (15) years. What are the annual end-of-year payments? Determine the amount of interest and principal that are paid each year. What is the total interest paid for the loan? a. b. Restructure the loan in the previous question to make payments monthly. Determine the savings in interest overall. C. Restructure your payment schedule once more to make payment every two weeks. Determine the savings in interest (if any) in this case (compare to both previous repayment options). 1 OF 1

The Clarks are arranging a $90,000 mortgage loan from their bank. The mortgage is to be amortized by making monthly payments over 20 years. The Interest on the loan will be 7.9% compounded semlannually. a. What is the size of the monthly payments? b. Vhat Is the principal repaid by the 20th payment? c. What is the outstanding balance after two years (I.e. 24 months)? d. How much interest will the Clarks pay in the first two years?