The purchase of a car requires a $15,000 loan to be repaid in monthly installments for four years at 10% interest compounded monthly. If the general inflation rate is 6% compounded monthly, find the actual and constant dollar value of the 151h payment of this loan.

Q: A demand loan of $3000.00 is repaid by payments of $1500.00 after two years, $1500.00 after four…

A: A. Amount outstanding at the end of 2nd Year           $ 3000 (1+0.08/2)2x2 $3509.57568 B.…

Q: ill grant an 80 percent loan on a home with an appraised value of $328,400 at 4.75 percent annual…

A: Loans are paid by the equal monthly payments and these payments carry the payment of principal and…

Q: An installment contract for the purchase of a car requires payments of $311.25 at the end of each…

A: The amount financed for the car is approximately $16,900.60. The total interest cost over the 5…

Q: A loan is to be repaid over 30 years, with month-end repayments of 8,000. If the interes rate is…

A: Loan Amount = Monthly payments * [ 1- [1/(1+r)^n ] / r  where r is the monthly rate = 3/12 = 0.25  n…

Q: Assume you graduate from university with a $37,000 student loan. If your interest rate is fixed at…

A: The monthly payment amount can be calculated with the help of present value of annuity function.…

Q: Calculate the present value of a loan that could be cleared by payments of $3,250 at the end of…

A: Present value of loan ca be calculated by using loan amortisation formula. Present value of loan(P)=…

Q: A $15 000.00 loan requires payments at the end of each month for five years. If the interest rate on…

A: Present value of annuity formula.PV = A*wherePV = present value of annuityA= periodic paymentsr=…

Q: To pay off a loan of P1M, it is required that quarterly payments that increase by P1000.00 be made…

A: The cash flow diagram and the amortization schedule: A cash stream refers to a periodic cash inflow…

Q: Payment rate = i 729.18 dollars per year Interest paid i 12395.98

A: We first need to determine the effective annual rate using the formula below: EAR = einterest rate -…

Q: Calculate the present value of a loan that could be cleared by payments of $3,250 at the end of…

A: We need to use present value of ordinary annuity formula to calculate the loan amount for given…

Q: A demand loan of $3000.00 is repaid by payments of $1000.00 after two years, $1000.00 after four…

A: Loans are paid by payments and these payments carry the payment for interest and payment for loan…

Q: A car loan requires 30 monthly payments of $199.00 starting today. At annual rate of 12 percent…

A: Loan (mortgage) amortization schedule refers to a schedule which is prepared to shows the periodic…

Q: Compute the monthly payment on a $65,000 loan if the principal and interest are to be repaid in 84…

A: Monthly payments could be computed by using the present value formula. Present value of all the…

Q: machine selling for $10000 may be purchase by paying a $1000 deposit and the balance in equal…

A: in this problem we have to calculate present value FACTOR and from that we can get monthly payments.

Q: Required: a. If the borrower makes interest-only payments for three years, what will the payments…

A: Amortization: It is the process of paying the loan by making periodic and regular payments. These…

Q: Find the vehicle payment under the following conditions: A loan of $16,000.00 at 4.9% compounded…

A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…

Q: Laurier Inc. has borrowed $ 65000 from its bank. The annual interest rate on the loan is 4%…

A: Solution Given Amount borrowed $65000 Interest rate 4% Compounding Annually…

Q: A $17000 loan is to repaid by monthly payments of $390, the first payment is due in one year's time.…

A: given, pv = $17000 pmt = $390 r=10% m=12

Q: Van Buren Resources Inc. is considering borrowing $100,000 for 202 days from its bank. Van Buren…

A: Given:Borrowing amount=$1000000 for 202 daysPayable amount $3000 of interest at maturityRepaid…

Q: An installment contract for the purchase of a car requires payments of ​$217.43 at the end of each…

A: Interest expenses The amount that the borrower pays for the funds borrowed is called the interest…

Q: Consider a five-year floating rate loan with principal of $10 million and quarterly payments based…

A: Given information: 5 year floating rate loan of $10 million

Q: n is to be repaid over 30 years, with month-end repayments of 5,000. If the interest rate is 4.1%…

A: Loans are to be paid by equal fixed monthly payments and these monthly payments carry payment for…

Q: What is the amount of each payment if Plascote Industries borrows $32,600, at  an annual interest of…

A: for calculating amount to be paid for each installment we use PMT function in excel to determine the…

Q: An interest-only ARM is made for $218,000 for 30 years. The start rate is 5 percent and the borrower…

A: It is the process of paying the loan by making periodic and regular payments. These payments include…

Q: Van Buren Resources Inc. is considering borrowing $120,000 for 168 days from its bank. Van Buren…

A: Financing Costs: Financing costs is nothing but an interest cost that a company would incur for…

Q: Compute the monthly payment on a $65,000 loanif the principal and interest are to be repaid in 84…

A: a) Loan amount (PV) of $65,000 needs to be repaid in (n) 84 equal installments at an annual interest…

Q: Calculate the present value of a loan that could be cleared by payments of $3,350 at the end of…

A: Here,Semi Annual Payments (PMT) is $3,350Time Period (n) in years is 7 yearsInterest Rate (r) is…

Q: Consider a student loan of $25,000 at a fixed APR of 12% for 20 years. a. Calculate the monthly…

A: We need to use loan amortisation formula below to calculate monthly payment.  PMT =P*i1-1(1+i)n…

Q: Find the monthly payment on an auto loan of 200000 to be akortized over a 5-year period at a rate of…

A: Given Information : Auto loan - 200000 Period - 5 years Rate - 9%

Q: A demand loan of $5000.00 is repaid by payments of $2500.00 after two years, $2500.00 after four…

A: A loan refers to a contract between two parties where money is forwarded by one party to the other…

Q: A $14,000 loan is to be amortized for 10 years with quarterly payments of $467.98. If the interest…

A: Given information: Loan amount $14,000 Number of years 10 Paying Quarterly $467.98 Interest rate is…

Q: You have taken out a 60-month, $26,000 car loan with an APR of 8%, compounded monthly. The monthly…

A: A loan refers to a contract between two parties where money is forwarded by one party to the other…

Q: Consider a loan of $5.2 million that is paid quarterly over a period of 15 years. Calculate the…

A: Loan amortization is the process of paying off a loan over time with regular, fixed payments. Each…

Q: A demand loan of $6000.00 is repaid by payments of $2500.00 after two years, $2500.00 after four…

A: Amortization or loan repayment schedule For level-payment loans, a loan amortization schedule is a…

Q: Find the effective interest rate for a loan for four years compounded semiannually at an annual rate…

A: Effective Interest rate is rate effectively we are paying on a loan on annual basis when compounding…

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.