Red Lions Corporation takes out a $8.6 million short-term amortizing loan fornine months at 11.4% per annum. It makes monthly payments to pay off the loan.However, after completing 5 months of repayments, it decides to payoff early theremaining part of the loan amount.Q1. How much are the monthly repayment (in millions of dollars)?millions. (Give answer to 4 decimal places)$Q2. How much does it repay to payoff the remaining part of the loan (in millions ofdollars)?$millions. (Give answer to 4 decimal places)

The sum borrowed to meet the specific personal or business needs is regarded as the loan/mortgage.…

Answered: Red Lions Corporation takes out a $8.6…

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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Similar questions

:A company borrowed (100000$) from a bank and decided to repay this dept by a series payments (payment every 6 months for 5 years). The bank put a condition about the payment that every payment should increase by (1000$) each time. If the interest rate is (% 9) compounded quarterly, determine the amount of each payment?
Answer the following problems with complete solution.
5.-DO IT IN EXCEL, AND SHOW THE FORMULASThe company purchases a machine, its cost of $726,000 will be financed with a loan at 13.8% interest for three years that requires equal semi-annual payments (annuities) that include principal and interest. What is the amount of the payment? A) $185,674.92 B) None of these amounts C) $311,662.137 D) $151,841.86 (Choose one option) D) $151,841.86
I need the answer as soon as possible
17. A start-up company that makes hydraulic seals borrowed $800000 to expand its packaging and shipping facility. The contract required the company to repay the investors through an innovative mechanism called faux dividends, a series of uniform annual payments over a fixed period of time. If the company paid $250000 per year for 5 years, what was the interest rate on the loan? A 7% per year 7.1% per year 11.7% per year 17% per year
A:If I lend you $ 1500, at % 8 per year, what is the simple interest to be paid at the end of two years? B:An engineer deposits $ 1000 in an account. If the bank pays interest rate of 6% per year. compounded daily, how much money will have accumulated in the account after 6 years?
Acme Industries Ltd. borrowed $50,000 and amortized the loan over 10 years at a rate of j1=8.00%. They will make monthly payments on the loan. a) Calculate the monthly loan payment rounded UP to the next cent: b) What is the balance owing on the loan after 3 years?
9. A man borrows Php10,000 from a loan firm. The rate of simple interest is 15%, but the interest is to be deducted from the loan at the time the money is borrowed. At the end of one year he has to pay back Php10,000. What is the actual rate of interest?
A radio commercial for a loan company states: "You only pay 29g a day for each $500 borrowed." If you borrow $1,586 for 166 days, what amount will you repay, and what annual interest rate is the company actually charging? (Assume a 360-day year) a. Amount you repay $(Round to two decimal places.)
3. 4. Suppose you recently bought a house for R1 650 000 and secured a home loan from the bank, with an interest rate of 9% per annum (compounded monthly) for a 20-year (240-month) term. You are obligated to make equal monthly payments, and your first payment is due in one month's time. However, after reviewing the bank's repayment calculation, you realize that you can afford to pay R1 000 more each month. How many months less will it take you to repay the home loan if you consistently make an additional monthly payment of R1 000. You may assume that the interest rate will remain fixed over the term of the home loan. a) 203.24 months. b) 0.24 months c) 36.76 months d) 60.10 months e) None of the above Nombulelo Makwete has been shopping around for a loan to finance the purchase of a used car she is buying. She needs to borrow R205 000. She found four offers that seem to be attractive, but would like to choose the offer with the lowest annual interest rate. The information she was…
An open loan of $17,000 was taken out today where payments (deposits) and withdrawals can be made freely with a loan rate of 2.8% compounded semi-annually. To reduce the balance of the loan, $1030 was paid 12 months from today, and $5730 was paid 16 months from today. What is the final outstanding balance of the loan 24 months from today (8 months after the last payment)? State your final answer in dollars ($) with two decimals.
The Johnson Family borrowed $3,000 for 18 months at 4% interest. What is the total payback on the Single Payment loan(round to the nearest dollar){DO NOT INCLUDE COMMAS OR $}?

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