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- A firm borrows $2,000,000 at 12% annual interest and wishes to pay it back with payments that increase by $50,000 per year over the 10-year life of the loan. How much would their first payment be?How much would a company have to invest now in order to sufficiently provide for annual payments of $313,000 over a 8-year period? Assume the interest rate is 12% per year.If you borrowed P10,000 from a bank with 18% interest per annum, what is the total amount to be paid at the end of one year?
- 4. If 10,000php is invested in account paying 6% compounded quarterly; A. How much will be in the account at the end of 5years? b. How much interest will it earn? C. Compare the interest it will earn if it is paid at simple interest rate.u) $15,000 is invested in an account at fime 0. At the end of 4 years, an additional $15,000 1s invested into the same account. The account is expected to return 9% interest (compounded annually). a) What is the value in the account at the end of 10 years? $Suppose you borrow $70,000 at 5.25% annual interest to be repaid with a fully amortized plan over 14 years (equal end-of-year payments). What is the annual payment? What is the total amount of principal and interest paid?
- How much should be invested now into an 8% per annum interest-bearing account, compounded yearly, so that an amount of R250 000 will be accumulated in 6 years?If $600 is invested in an account with an annual interest rate of 14.5%, compounded continuously, how much will the account be worth in 5 years?1. What is the future equivalent of $1,000 invested at 6% simple interest per year for 2½ years? 2. A present obligation of $20,000 is to be repaid in equal uniform annual amounts, each of which includes repayment of the debt (principal) and interest on the debt, over a period of five years. If the interest rate is 10% per year, what is the amount of the annual repayment? 3. It is estimated that a copper mine will produce 10,000 tons of ore during the coming year. Production is expected to increase by 5% per year thereafter in each of the following six years. Profit per ton will be $14 for years one through seven. a. Draw a cash flow diagram for this copper mine operation from the company's viewpoint. b. If the company can earn 10% per year on its capital, what is the future equivalent of the copper mine's cash flows at the end of year seven?
- If a firm borrowed P500,000 at a rate of 10% simple interest with monthly interest payments and a 365-day year, what would be the required interest payment for a 30-day montA loan of $60000 at j4 = 6% is to be repaid over 20 years with semi-annual payments. a) How much principal is repaid as part of the 28th payment? b) What is the outstanding balance of the loan after 34 payments?The principal P is invested at the interest rate of r/year for t years. (Use a 365-day year.) P = $110,000, r = 4%, t = 7 1 4 , compounded monthly.Determine i, the compound interest rate.