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Given an interest rate of 4% and a term of 20 years, how much could the city borrow if they paid $1M/ year in payment?
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- How much must be invested now to receive $50,000 for 8 years if the first $50,000 is received in one year and the rate is 10%?Suppose you wish to borrow $60,000 at an annually compounded interest rate of 16% for a period of 14 years. What would be the annual repayment?A borrower looking to borrow $100,000 can obtain an 80 percent loan with an 8 percent interest rate and monthly payments. The loan is to be fully amortized over 25 years. Alternatively, he could obtain a 90 percent loan at an 10 percent rate with the same loan term. What is the incremental ANNUAL cost of borrowing the additional funds? 20.13 17.42 23.98 18.19
- A loan of 2000 is taken now and is agreed to be repaid as follows: annual payments of 200 each for as long as possible and a final payment of 200+ X where X < 200; the first payment is due 10 years from now. The effective annual rate is 4%. a) How many payments of 200 are made? b) What is the amount of the final payment?What is the present value of an investment that will pay $1,000 in one year's time, and $1,000 every year after that, when the interest rate is 8%?Suppose you wish to borrow Php 20,000,000 to buy a parcel of real estate. The lender is willing to lend the money at 10% per annum. Amortize the payments annually over 10 years.
- Darby Hospital is borrowing $81 million for its medical office building. The annual interest rate is 4%. What will be the equal annual payments on the loan if the length of the loan is 4 years and payments occur at the end of each year?[x]An investment pays $4,000 per year at the beginning of each year for the next 4 years and then $6,000 per year at the beginning of each year for the next 6 years. Using a discount rate of 8%, what is the GPV of these payments?How large must each annual payment be if the loan is for $50, 000? Assume that the interest rate remains at 10% and that the loan is still paid off over 5 years.
- Assume annual car payments of $6000 for 4 years and an interest rate of 9% per year. What initial principal or PW will this repay?Suppose you wish to purchase heavy equipment machinery and a commercial bank will lend you $65,000 for the transaction. The loan will be amortized over 5 years and the nominal interest rate will be 8% payable monthly. Calculate the monthly payment and the annual percentage rate (EAR) of the loan to be amortized.Using a spread sheet, calculate the annual payments on a loan for $ 100,000, 10-year loan, 5% per year interest. Then build an amortization schedule for this loan. Develop an amortization for a $100, 000 loan, 5% interest, the annual payments will begin at $4,000 and increase by $1,000 per year until the loan is paid. Then answer this question: How many years will it take to pay off this loan?