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- Freddy agreed to make quarterly payments of $781.25 for 4 years on a loan of $10,000. What simple interest rate is he paying?Jonathan wishes to borrow $180 000 from a commercial bank. He was told that the loan would be amortized over five years and that payment could be made at the beginning or at the end of each year. Please assist Jonathan by answering the following questions. a. Explain to Jonathan, what is the purpose of a loan amortization schedule? b. Jonathan borrows $180 000 at 9% per annum for five years. The loan is repayable in five equal instalments at the beginning of the year. What is the annual payment?PLEASE SHOW ALL WORK. Dax borrows $500,000 and the loan is governed by compound interest at an annual effective interest rate of 4.75%. Dax agrees to repay the loan by ten equally spaced payments, the first four of which are for $25,000 and the next six of which are for $70,000. When should he make the first payment (in years)?
- Zach Taylor is settling a $20,000 loan due today by making 6 equal annual payments of $4,727.53. Determine the interest rate on this loan, if the payments begin one year after the loan is signed.Andy borrowed P9000 from Randy today and P12000 two years after and made a partial payment of P7000 one year after. It was agreed that the balance of the loan would be amortized by two payments on the 4th and 5th year from the start of transaction, the second being 50% larger than the first, if the interest rate is 12%, what is the amount of each payment?Liam loaned an amount of 15,581 and he will pay it with an amount of 25,501 after 9 years. What is the agreed interest rate between Liam and the bank compounded annually in percent?
- Marissa borrowed $1,010 today and is to repay the loan in two equal payments, one in 3 months and the other in 14 months. Assuming an interest rate of 4% p.a. on the loan, determine the size of the equal payments if a focal date of "today" is used.Chris Jenkins is borrowing $11,500 for 5 years at 10 percent. Payments are made on a monthly basis, which are determined using the add-on method. How much total interest will Chris pay on the loan if it is held for the full five-year term? What are Chris' monthly payments? Round the answer to the nearest cent. How much higher are the monthly payments under the add-on method than under the simple interest method (determined using a calculator or approximated using Exhibit 7.6)? Round the answer to the nearest cent.The Flemings secured a bank loan of $272,000 to help finance the purchase of a house. The bank charges interest at a rate of 4%/year on the unpaid balance, and interest computations are made at the end of each month. The Flemings have agreed to repay the loan in equal monthly installments over 25 years. What should be the size of each repayment if the loan is to be amortized at the end of the term? (Round your answer to the nearest cent.)$
- Sigmund and Karl each borrowed an identical amount from Ludwig at a nominal rate of discount of 5.2% convertible quarterly. Sigmund repays his loan by making payments of $3,000 at the end of each year for six years. Karl makes payments of $4,100 at four equally spaced times T, 2T, 3T, and 4T. Find T. (Hint: You will need to find the interest rate I for a period of length T. Round your answer to three decimal places.) (year) T = .034Emerson Cammack wishes to purchase an annuity contract that will pay him $7,000 a year for the rest of his life. The Philo Life Insurance Company figures that his life expectancy is 20 years, based on its actuary tables. The company imputes a compound annual interest rate of 6 percent in its annuity contracts. a. How much will Cammack have to pay for the annuity? b. How much would he have to pay if the interest rate were 8 percent?Jose has a 15-year mortgage of $250,000 from his bank. The mortgage calls for equal monthly repayments and carries an annual percentage rate (APR) of 3%. Right after Jose makes his first repayment, how much in principal does Jose still owe the bank? O A) $248,274 B) $249,899 C) $248,899 D) $249,274