SOA 191] A five-year loan has an annual nominal interest rate of 30%, convertible monthly. The loan is scheduled to be repaid with level monthly payments of 500, beginning one month after the date of the loan. The borrower misses the thirteenth through the eighteenth payments, but increases The next six payments to X so that the final 36 payments of 500 will repay the oan. Calculate X.

SOA 191] A five-year loan has an annual nominal interest rate of 30%, convertible monthly. The loan is scheduled to be repaid with level monthly payments of 500, beginning one month after the date of the loan. The borrower misses the thirteenth through the eighteenth payments, but increases The next six payments to X so that the final 36 payments of 500 will repay the oan. Calculate X.

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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(Ch 11 #9) There is a loan obligation to pay $1000 one year from today and another $1000 two years from today. Assuming the annual effective rate of interest is 10%, find the following: a) Macaulay duration of the loan. b) Modified duration of the loan. c) Convexity of the loan.
In an amortization table for a four-year loan of $45,280, given an interest rate of 11%, how much will the principal payment be in the second year if the loan calls for equal payments? Select one: a.$15222.90 O b.$10,448.32 O c.$15,593 d.$10,671.69
If you borrow $100,000 at an annual interest rate of 10% for six years, what is the annual payment (prior to maturity) on a fully amortized loan? 14 Your choice: 14/15 Qs A: $0.00 B: $10,000.00 C: $16,666.67 D: $22960.74
15. What is the rate of interest on a 30 year fully amortizing loan if the monthly repayments are $1,270.48? a) 5.45% b) 4.85% c) 5.86% d) 6.12% 16. Based on a $400,000 25 year loan at an interest rate of 6.45% what are the interest payments in the first month a) $1,857.50 b) $2,150.00 c) $2,418.75 d) Can’t answer the question without knowing if the loan is fully amortizing or partially amortizing. 17. Moving from a Fixed-Rate loan to an Adjustable Rate loan transfers interest rate exposure from the lender to the borrower? a) True b) False
5.15(a) A loan of $20,000 is to be amortized in 10 level annual payments. The interest rate for the first 3 years is 4% while the interest rate for the subsequent 7 years is 6%. Calculate the loan balance B6 by; (a) the prospective method
Assume we have a $500,000 mortgage at 3.5% original interest rate, with a 30- year term and monthly payments. The interest rate can be adjusted at the end of each year, and we assume the rate increases 0.15% after the first year and another 0.5% after the second year. What is the loan balance at the end of the second year? O481,255 None of the given answers 455.812 418,256 480,709
2.A certain loan was to be amortized based on the schedule below at 15% interest. What is the equivalent annual uniform payment of the loan? End of Year Payment 1 P 7,000 2 P 6,500 3 P 6.000 4 P 5,500 5 P 5.000 6 P 4,500 7 P 4,000 a. P 5365.80 b. P 5333.00 c. P 6475.12 d. P 5775.08 PLEASE SHOW YOUR SOLUTIONS. THANK YOU!
K Use PMT= 31¬ [₁-3] a. Find the monthly payments and the total interest for the loan. b. Prepare a loan amortization schedule for the first three months of the mortgage. to determine the regular payment amount, rounded to the nearest cent. The cost of a home is financed with a $130,000 20-year fixed-rate mortgage at 4.5%. nt a. The monthly payment is $ (Do not round until the final answer. Then round to the nearest cent as needed.) 1 2 The total interest for the loan is $ (Use the answer from part a to find this answer. Round to the nearest cent as needed.) b. Fill out the loan amortization schedule for the first three months of the mortgage below. Payment Number Interest $1 $ 3 $ (Use the answer from part a to find these answers. Round to the nearest cent as needed.) Principal $ $ $ Loan Balance $ S 4
A LOAN OF P80,000 IS MADE FOR A PERIOD OF 18 MONTHS AT A SIMPLE INTEREST RATE OF 10%. WHAT FUTURE AMOUNT IS DUE AT THE END OF THE LOAN PERIOD? O a P92,100.00 O b. P92,020.00 O c. P92,000.00 O d. P93,000.00
You plan to borrow $43,100 at an 8.0% annual interest rate. The terms require you to amortize the loan with 7 equal end-of- year payments. How much interest would you be paying in Year 2? a. $3,110.63 b. $3,061.57 c. $7,665.11 d. $8,278.32 e. $3,448.00
12.) Find the simple interest on a loan of P65,000.00 if the loan is given at a rate of 8% and is due in 6 years and 3 months. A. $3,250.00 C. P32,500.00 B. P31,200.00 D. P46,800.00
What is the difference in interest paid between a 30-year mortgage loan and a 15-year mortgage loan both of $72700 if the annual interest rate is 5% a. $27262.50 b. $54525.00 c. $37012.40 d. $10348.38

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