Alhambra Corporation borrowed $1 million from Anaheim Bank with the understanding that Alhambra will pay the loan back in 6 monthly installments of $175,000 each. Find the annual rate of interest charged by the bank.

A bank made a farmer loan of 1000 at 14% for three years compounded annually. Find the future value and the compound interest paid on the loan. Compare the compound interest with the simple interest for the same period

A company plans to make four annual deposits of $4,250 each to a special building fund. The fund's assets will be invested in mortgage instruments expected to pay interest at 12% on the fund's balance. Determine how much will be accumulated in the fund after four years under each of the following situations: 1. The $4250 annual deposit are made at the end of each of the four years and interest is compounded annually. 2. The $4250 annual deposit are made at the beginning of each of the four years and interest is compounded annually. 3. The $4250 annual deposit are made at the beginning of each of the four years and interest is compounded quarterly. 4. The $4250 annual deposit are made at the beginning of each of the four years interest is compounded annually, and interest earned is withdrawn at the end of each year.

5.

Company A is contemplating on borrowing $500,000 to start a business.  Credit union 1 has offered to loan the company the money at an interest rate of 14% compounded continuously.  Credit union 2 has offered the money with the stipulation that the company repays it by making monthly payments of $120,000 for 5 years.  From which credit union should the company borrow the money?

The payment necessary to amortize a 5.7% loan of $97000 compounded annually, with 5 annual payments is ​$22,839.84. The total of the payments is ​$114,199.20 with a total interest payment of ​$17,199.20. The borrower made larger payments of ​$23,000.00. Calculate​ (a) the time needed to pay off the​ loan, (b) the total amount of the​ payments, and​ (c) the amount of interest saved.   a. The time needed to pay off the loan with payments of ​$23,000.00 is _____ years. ​(Round up to the nearest​ year.)   b. The total amount of the payments is ​$______ ​(Round to the nearest cent as​ needed.)   c. The amount of interest saved is ​$______. ​(Round to the nearest cent as​ needed.)

A finance company uses the discount method of calculating interest. The loan principal is $5,000, the interest rate is 10%, and repayment is expected in two years. You will receive

Ontario Credit Union borrowed $275,000 at 9.5% compounded semi-annually from League Central to build an office complex. The loan agreement requires payment of interest at the end of every 6 months In addition, the credit union is to make equal payments into a sinking fund so that the principal can be retired in total after 20 years Interest earned by the fund is 8% compounded semi-annually (a) What is the semi-annual interest payment on the debt? (b) What is the size of the semi-annual deposits into the sinking fund? (c) What is the total annual cost of the debt? (d) What is the interest earned by the fund in the 32nd payment interval? (e) What is the book value of the debt after 16 years? (f) Prepare a partial sinking fund schedule showing details, including the book value of the debt, for the first three payments, the last three payments, and the totals. (a) The interest payment is $ (Round the final answer to the nearest dollar as needed. Round all intermediate values to six decimal…

SureWin Company owes an amount of debt to a bank and the bank proposed the following annual payments to pay off the debt.  Year 0 (Today): 20,000 Year 1: 24,000;  Year 2: 30,000; Year 3: 30,000; Year 4: 35,000; (1) If the appropriate interest rate that bank is charging is APR 6% annual compounding, what would be the amount to debt owed today? (2) If SureWin can negotiate with the bank to pay yearly equal instalments over 4 years starting from the end of year 1 with the same 6% annual interest rate, what would be the amount of yearly payment? (3) If the bank accepts SureWin proposal in (2), what would be the interest amount paid to the bank in the first year?

Stinson Corporation borrowed $85,000 at 8% compounded quarterly to buy a warehouse. Monthly payments of $1200 were made over the term of the loan. Construct a partial amortization schedule showing the last 2 payments. Determine the total amount paid to settle the loan. Show work, not just the answer. Determine the total principal repaid. Determine the total amount of interest paid. Show work, not just the answer.