Teal and Associates needs to borrow $65,000. The best loan they can find is one at 12% that must be repaid in monthly installments over the next 5 1/2 1 2 years. How much are the monthly payments? (a) State the type. A. ordinary annuityB.sinking fund C.present valueD.amortizationE.future value (b) Answer the question. (Round your answer to the nearest cent.)

Teal and Associates needs to borrow $65,000. The best loan they can find is one at 12% that must be repaid in monthly installments over the next 5 1/2 1 2 years. How much are the monthly payments? (a) State the type. A. ordinary annuityB.sinking fund C.present valueD.amortizationE.future value (b) Answer the question. (Round your answer to the nearest cent.)

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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Teal and Associates needs to borrow $65,000. The best loan they can find is one at 11% that must be repaid in monthly installments over the next years. How much are the monthly payments? (a) State the type. O ordinary annuity O sinking fund O present value O amortization O future value (b) Answer the question. (Round your answer to the nearest cent.) $
Teal and Associates needs to borrow $35,000. The best loan they can find is one at 12% that must be repaid in monthly installments over the next years. How much are the monthly payments? (a) State the type. O present value future value O sinking fund O ordinary annuity O amortization (b) Answer the question. (Round your answer to the nearest cent.) $
MY NOTES ASK YOUR TEACHER Teal and Associates needs to borrow $65,000. The best loan they can find is one at 11% that must be repaid in monthly installments over the next years. How much are the monthly payments? (a) State the type. O future value O ordinary annuity O amortization O sinking fund O present value (b) Answer the question. (Round your answer to the nearest cent.) 2$ Need Heln? Read It
Suppose you want to borrow $90,000 and you find a bank offering a 20-year loan with an APR of 5%. a. Find your regular payments if you pay n = 1, 12, 26, 52 times a year. b. Compute the total payout for each of the loans in part (a). c. Compare the total payouts computed in part (b). a. The payment for n = 1 would be $ The payment for n = 12 would be $ The payment for n = 26 would be $ The payment for n= 52 would be $ (Do not round until the final answer. Then round to the nearest cent as needed.)
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1. Suppose you borrow $16,000. The interest rate is 9%, and it requires 4 equal end-of-year payments. Set up an amortization schedule that shows the annual payments, interest payments, principal repayments, and beginning and ending loan balances. Round your answers to the nearest cent. If your answer is zero, enter "0".
Suppose you want to borrow $90,000 and you find a bank offering a 20-year term for a loan of that amount, with an APR of 7%. Complete parts (a) and (b) below. (a) What are your monthly payments? PMT=$ (Round to the nearest cent as needed.) Question
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