The present value of a loan of R12 000 due in five years’ time, at a simple discount rate of 15% per annum is

Q: A loan is being repaid with 10 payments of RM2,000 followed by 10 payments of RM1,000 at the end of…

A: First 10 semi annual payment = RM 2000 Next 10 Semi annual payments = RM 1000 Annual interest rate =…

Q: Suppose a $18,186 loan has an annual compound interest rate of 2.2% with semi-annual compounding…

A: In this question we need to calculate the Future value of the loan from details given as follows:…

Q: What is the payment for a loan of $320000 with an interest rate of 8.13% compounded monthly for 6…

A: using financial calculator to solve the monthly payment

Q: A firm is scheduled to receive payment of $32,000 in 2 years. What is the present value of this…

A: To calculate the present value we will use the below formula   Present value = FV/[1+(r/m)]n*m Where…

Q: Find the maturity value of a loan of $2,400.00 after three years. The loan carries a simple interest…

A: Simple interest refers to the method of calculating the interest amount. Under this method, the rate…

Q: A 3,000,000 peso loan is to be amortized at 4.55% quarterly for 2 years. Solve for the value inside…

A: Quarterly payment for loan will be, Where, P = Loan amount =3000000 r = Quarterly  interest rate =…

Q: Find the maturity value of a loan of $2,900.00 after three years. The loan carries a simple interest…

A: Given that, Loan amount (P)=$2,900.00 Rate of interest (i)=7.5% p.a. Time (n)=3 years Maturity value…

Q: A five year $10 000 loan requires $2770 annual payments. What is the interest rate

A: Borrowings are the liability that is used to finance the requirement of the funds. The borrower…

Q: $25,000 is borrowed at an annual compound rate of 8%. The loan is repaid with 5 annual payments,…

A: Loan amount is the amount that is borrowed

Q: A loan of 750000 needs to be paid in annual installments by the end of every year. The interest rate…

A: The periodic payment of a loan or debt is known as installment. The installment includes principal…

Q: A loan of P30,000 is to be repaid monthly for 5 years that will start at the end of 4 years. If…

A: Present value of deferred annutiy Present value of deferred annuity refers to the annuity which…

Q: Draw a Cash Flow Diagram for P10,535 being loaned out at an interest rate of 12% per year over a…

A: Simple Interest per annum = Principle * Rate * Time = P10,535 * 12% * 1 = 1264.2   Cash flow diagram…

Q: A loan of size L is to be paid off by payments of 2000 each year for 10 years. The principal repaid…

A: The question is based on the concept of loan amortization and sinking fund. The question can be…

Q: What rate compounded monthly was charged on a loan of ₱3500.00 repaid in monthly installments of…

A: Loan = 3500 Monthly Installment = 107.19 Time Period (N) = 39 months

Q: For an interest rate of 12% compounded annu-ally, determine the following: (a) How much can be lent…

A: Given information: Interest rate of 12% compounded annually, Future value of lump sum amount is…

Q: What is the present value of $452,000 to be received in 6 years from today.  Assume a per annum…

A: Compound interest is one of the form of interest in which interest is charged on both principal as…

Q: a) For a loan of $55,000, with an annual interest rate of 5 % p.a. compounded monthly, and monthly…

A: “Hey, since there are multiple questions posted, we will answer first question. If you want any…

Q: a) Payment of $5,000 per year for 6 years will repay an original loan of $25,000? b) Thirty-six…

A: Future Value = Present value ( 1 + i )n

Q: A consumer loan of P80,000 is obtained that is due 3 months from now. If interest rate is 8%…

A: The borrower is required to pay the lender the initial sum borrowed and the interest on the loan.…

Q: A loan of P30,000 was made with a rate of 15% annually. How many years will he pay an amount of P…

A: Loan amount  is P30,000 Rate"r" is 15% Annually Total Interest paid is P6,000 Future Value is…

Q: What would be r in this problem? A P100,000 loan is to be paid monthly for 2 years with an interest…

A: Interest rate = 10% per annum semiannually compounded Compounding frequency = 2 Let the monthly…

Q: Given a principal amount of P500,000 and an interest rate of 5.08% per year, construct a loan…

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

Q: A loan of P300,000 is to be repaid in full after 2years. If the interest rate is 9% per annum. How…

A: given, P= p300,000 r=9% m=12 n=2

Q: A firm is scheduled to receive payment of $32,000 in 2 years.  What is the present value of this…

A: Present value of future cash flow can be calculated as follows: = Future Value/ (1 + rate)^number of…

Q: Find the interest that will be deducted in advance from a loan of P25,000.00 due in 2 years if the…

A: Given Information : Amount of loan = ₱25,000 Annual interest rate = 6% Number of years = 2

Q: You get a twenty-year amortized loan of Php100,000 with a 5% annual interest rate.  What are the…

A: Whenever a borrower acquires funds from a lender, he makes a promise to repay back the principal…

Q: $25,000 is borrowed at an annual compound rate of 8%. The loan is repaid with 5 annual payments,…

A: P= $25,000 Rate= 8% compounded annually Time= 5 year (annual payments)

Q: A one million peso loan is to be paid annually at an interest rate of 8.00% pa compounded monthly.…

A: Loan amount (L) = P 1 million Interest rate = 8% compounded monthly. We need to find the annual rate…

Q: Consider a $150,000 loan with an annual interest rate of 6.5 percent and a 30-year term. Discount…

A: Present value of annuity Annuity is a series of equal payments at equal interval over a specified…

Q: What's the present value of $14,000 discounted back 5 years if the appropriate interest rate is…

A: An investment decision is taken on the basis of the returns expected to be generated by the…

Q: A loan of $3000 is to be repaid by level monthly installments in arrears over a period of 3 years.…

A: Annual percentage rate (APR) refers to the annual cost of funds borrowed.

Q: A loan for P 50,000 is to be paid in 3 years at the amount of P65,000. What is the effective rate of…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: Consider a loan of 25000 for a period of 30 years at a fixed apr of 9.5% the monthly payment is

A: Given information: Loan amount is 25,000 APR is of 9.5% Number of years (period) is 30

Q: A loan of Php20,000 is expected to yield a compound amount of Php45,000 at a nominal rate of 9%.…

A: Loan amount (PV) = Php 20,000 Future value (FV) = Php 45000 Interest rate  = 9% Semi annual interest…

Q: Find the future value of this loan. $15,458 at 6.7% for 6 months

A: Intreast rate for 6 months =6.7×6/12=3.35%

Q: 1. Calculate the yield to maturity on a simple loan of $10,000 that requires the repayment of…

A: Present value of loan = $10,000 Future value of loan = $10,600 Time duration = 1 year

Q: Consider a loan of 1,000,000 which is to be amortized by 60 monthly payments. The interest rate is…

A: Monthly payment is the portion of the loan amount along with the interest that is paid every month.…

Q: How much interest will be owed on a loan of P15,500 at the end of 4 years and 7months using 15…

A: Loan amount (P) = P15500 Period (t) = 4 Years and 7 Months = 4+(7/12) = 4+0.583333333333333 =…

Q: Suppose that one has a present loan of $1,000 and desires to determine what equivalent uniform EOY…

A: EOY payments is the abbreviation for end of year payments which is the payment made at the end year.…

Q: What is the future value of general annuity of P48,000 per annum, for 5 years, at 15% interest…

A: Annual payment (P) = P48,000 Number  of annual payments (n) = 5 Years Interest rate (r) = 15% Number…

Q: Suppose you wish to borrow $60,000 at an annually compounded interest rate of 16% for a period of 14…

A: Using the PMT function in excel

Q: What is the yield to maturity on a simple loan for$1,500 that requires a repayment of $15,000 in…

A: Individuals, corporates, and governments take loans to finance their needs. The interest rate on the…

Q: A 20 year loan is being repaid in equal annual ins he amount of interest in the last payment is $90.…

A: Present value of annuity With annuity or equal payment (PMT), interest rate (r) and period (n), the…

Q: A cash loan is to be repaid by paying P13,500 quarterly for 3 years starting at the end of 4 years.…

A: This problem is related to deferred annuity where annuities are deferred. hence there are no payment…

Q: A loan of $8000 will be discharged by a cash payment of $3200 now; $1800 at the end of 4 years; $600…

A: Present Value refers to the value of cash flows today which is to be received at some future time…

Q: If $15,000 was borrowed at 12 percent interest with monthly payments of $333.67, how long will take…

A: Present value is the present worth of any sum of a money to be received in the future at a specified…

Q: A loan of P95000 is borrowed for 240 days at a simple interest rate of 12.3 percent per year. What…

A: Loan amount (P) = P95000 Interest rate (r) = 12.3% Period (t) = 240 days = 240/365 =…

Mortgages

A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.

Mortgage

The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.