(Related to Checkpoint 6.1) (Annuity payments) A firm borrows $20,000 from the bank at 13 percent compounded annually to purchase some new machinery This loan is to be repaid in equal annoinstaliments at the end of each year over the next 13 years. How much will each annual payment be?The amount of each annual payment will be $ (Round to the nearest cont)

Annual payment refers to an amount that is paid on yearly basis for the repayment of loan amount…

Answered: (Related to Checkpoint 6.1) (Annuity…

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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A $3,000,000 apartment complex loan is to be paid off in 10 years by making 10 equal annual payments. How much is each payment if the interest rate is 7.5% compounded annually? (a) State the type. A. present valueB.sinking fund C.present value of an annuityD.amortizationE.ordinary annuity (b) Answer the question. (Round your answer to the nearest cent.)
Engineering Economics (Annuity) An ordinary annuity paying P1,811 at the end of each year for 15 years, is to be converted to an annuity paying an amount at the beginning of each month for 15 years. Money is worth 10% compounded annually. Determine the Future value of the payment and the amount being paid at the beginning of each month for 15 years? note: include cash flow diagram and complete/readable solution for this problem, this is 100% upvote guaranteed
Please help me answer Questions 14 & 16. :(
An annuity with a cash value of $12,000 pays $1,690 at the beginning of every six months. The investment earns 5% compounded semi-annually. (a) How many payments will be paid? (b) What is the size of the final annuity payment? points possidic (a) The number of payments is (Round up to the nearest whole number.) (b) The size of the final payment is $. (Round to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
A $20,000 loan obtained today is to be repaid in equal instalments over the next six years, starting at the end of this year. If the annual interest rate is 10%, compounded annually, how much is the payment for each year?
An annuity purchased for $175,000 pays $4,000 at the end of every quarter. How long will the payments continue if the funds earn 4% compounded semiannually? (Do not round intermediate calculations and round up the number of payments, n, to the next whole number.) It will be years months
A $6,000,000 apartment complex loan is to be paid off in 10 years by making 10 equal annual payments. How much is each payment if the interest rate is 7.5% compounded annually? (a) State the type. ordinary annuity sinking fund amortization present value of an annuity present value (b) Answer the question. (Round your answer to the nearest cent.)
1) A 20-year loan of $1,100 at an effective annual interest rate of 7% is repaid with payments at the end of each year. Each of the first ten payments equals 150% of the amount of interest due. Immediately after the tenth payment, you take out a 10 year loan with payments $100 at the end of each year and effective annual interest rate of i and use this loan to pay off your original loan. Find i.
Suppose you are thinking of availing a loan of P100,000 at Pag-ibig Funds for house repairs after typhoon Jolina. Interest is pegged at 14% compounded quarterly, and you intend to make equal quarterly payments to pay-off this loan in three years. Set-up an amortization schedule (table) to serve as your guide in tracking the payments made, interest paid, principal repaid and outstanding principal for each period.
Excellent bank has offered you, a GHC 60,000 35year loan to purchase an equipment in your Factory. The loan payments are to be made on monthly basis. The total payment at the end of the thirty five -year period is $ 134,964.00. Determine the effective annual interest rate if the interest is compounded continuously

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