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

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A: 1) Monthly Payment  = P * r * [(1+ r)n/({1 + r}n -1) Where, P = Principal borrowed = (car price -…

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A: in this we have to calculate present value FACTOR and than find out monthly payment.

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A: PV= 70,000=cr1-1(1+r)n70,000=c0.0081251-1(1+0.008125)240568.75= c[0.856600]c= $663.96 Monthly…

Q: Suppose you secure a $250,000 mortgage loan to be paid off over 30 years at an annual interest rate…

A: Calculator steps: I/y = rate = 7.1%/12 = 0.5916667% NPER = Number of periods = 30*12 = 360 PV =…

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A: Interest Paid = $5300 -$5000 Interest Paid =$300 Interest Rate =$300/$5000 Interest Rate = 6%…

Q: monthly. Then compute for the

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A: Given: Amount borrowed = $20,000 Number of years = 4 Interest rate = 8% Compounding frequency = 12

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A: Principal Amount = p = $10,200Compound = Quarterly = 4Time = t = 5 * 4 = 20Interest rate = r = 7.5 /…

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A: Loan amortization schedule: It implies to a detailed table that shows the periodic loan payments…

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A: 1). Monthly payment is calculated using following equation Monthly payment = A×(r/m)(1-1(1+r/m)n×m)…

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A: Future Value of Loan = Amount of Loan + interest on Loan

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A: A mortgage is a loan made usually for a property in which the collateral is the property itself.

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A: Here,

Q: Develop an amortization schedule for the loan described.

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Q: Excellent bank has offered you $40,000, 30-year loan to purchase an equipment in your Factory. The…

A: A = P1+r100n Where  A = Amount P = Principal r = Rate of interest n = Number of periods

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A: Future Value = Present Value * (1+r)^n