If you borrowed $30,000 at 25% annual interest. You agreed to repay the loan with five equal annual payments. How much of the total amount repaid is interest? How much of the third annual payment is interest, and how much principal is there? If you decided to pay off your loan after the third payment, how much will you pay?
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If you borrowed $30,000 at 25% annual interest. You agreed to repay the loan with five equal annual payments.
How much of the total amount repaid is interest?
How much of the third annual payment is interest, and how much principal is there?
If you decided to pay off your loan after the third payment, how much will you pay?
(Please Include Equations used and cashflow diagram)
(Please don't use excel)
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- If you borrowed $30,000 at 25% annual interest. You agreed to repay the loan with five equal annual payments. How much of the total amount repaid is interest? How much of the third annual payment is interest, and how much principal is there? If you decided to pay off your loan after the third payment, how much will you pay? (Please Include Equations used and cashflow diagram)Why would a bank lending officer be interested in thecash flow statement of a company that is applying for a loan?14. When you complete your MBA, you will treat yourself to a new car. The car you want to buy costs $25,000 and you have enough to put 20% down in cash. You can take out a loan for the rest of the cost of the car. Calculate your monthly car payments assuming the auto finance department states that the annual interest rate on the car loan is 8% and you pay the loan over a 3-year period.
- You opened a savings yesterday by depositing $10,000. You would like to be able to withdraw $2,000 per year for each of the next 4 years of college and still have $3,000 left in the account when you graduate. What interest rate does this account need to earn? (HARD)You have just been hired as a loan officer at a national bank. Your first assignment is to calculate the amount of the periodic payment (in $) required to amortize (pay off) the following loan being considered by the bank (use Table 12-2). (Round your answer to the nearest cent.) LoanPayment PaymentPeriod Term ofLoan (years) NominalRate (%) Present Value(Amount of Loan) $ every month 1.75 6 $30,000The First National Bank is offering a 3 year certificate of deposit (CD) at 4% interest compounded quarterly; Second National Bank is offering a 3 year CD at 5% interest compounded annually. (Round your answers to two decimal places.) (a) If you were interested in investing $7,000 in one of these CDs, calculate the compound amount (in $) of each offer. (Use Table 11-1.) First National Bank Second National Bank 2$ (b) What is the annual percentage yield of each CD? First National Bank % Second National Bank % (c) If Third National Bank has a 3 year CD at 4.5% interest compounded monthly, use the compound interest formula to calculate the compound amount (in $) of this offer. $
- As one of the loan officers for Grove Gate Bank, calculate the monthly principal and interest, PI (in $), using this table and the monthly PITI (in $) for the mortgage. (Round dollars to the nearest cent.) Amount Interest Financed Rate $220,000 7.50% Term of Loan (years) 25 $ Monthly PI Annual Property Tax $6,543 Annual Insurance $2,126 $ Monthly PITIIf you borrowed $24,000 at 12% annual interest. You agreed to repay the loan with five equal annual payments. How much of the total amount repaid is interest? How much of the third annual payment is interest, and how much principal is there? If you decided to pay off your loan after the third payment, how much will you pay?Please include a drawing of cashflow diagram
- For the following questions, choose the letter of the best answer (Show any work and explanations): 1. A home loan is taken out for $162,000. The loan is for 30 years, with a nominal annual rate of 7.5%,resulting in monthly payments of $1,132.73. The interest portion of the first payment will be what? a) $1,012.50 b) $682.73 c) $120.23 d) Answer cannot be determined without more information 2. A $100,000 asset has a $20,000 salvage value after its 10-year useful life. The depreciation allowanceusing straight-line depreciation is closest to what value? a) $2,000 b) $8,000 c) $10,000 d) $12,000 3. With reference to the straight-line depreciation method, which statement is false? a) The deprecation life (n) is set based on the MACRS property classes. b) An equal amount of depreciation is allocated in each year. c) The book value of the asset decreases by a fixed amount each year. d) The asset is depreciated down to a book value equal to the salvage value. 4. This past year, CLL…1. Find the interest paid on a loan of $2000 for 1 year at a simple interest rate of 7% per year. 2. Find the maturity value of a loan of $49,583 after 18 months. The loan carries a simple interest rate of 8.3% per year. 3. Find the exact interest on a loan of $7500 at 13% annually made on July 17 and due November 30. (Table 11-1) 4. Find the ordinary interest on a loan of $850 at 11% annually made on February 10 and due May 31. (Table 11-1)It refers to the actual or exact rate of interest earned on the principal during a one year period. A Nominal Rate of interest B) Compound Interest D Simple Interest Effective Rate of Interest