U. John borrows $10 000 for 10 years and uses a sinking fund to repay the principal The sinking tund deposits earm an annual effective interest rate of 5% The total required payment for both the interest and the sinking-fund deposit made at the end of each year is $1445-05 Calculate the annusl effective interest rate charged on the loan 7. A company borrows $10 000 for 5 years Interest of Sf

U. John borrows $10 000 for 10 years and uses a sinking fund to repay the principal The sinking tund deposits earm an annual effective interest rate of 5% The total required payment for both the interest and the sinking-fund deposit made at the end of each year is $1445-05 Calculate the annusl effective interest rate charged on the loan 7. A company borrows $10 000 for 5 years Interest of Sf

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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Similar questions

A firm borrows 2,000 for 6 years at 8%. At the end of 6 years, it renews the loan for the amount due plus 2000 more for 2 years at 8%. What is the lump sum due? a. 3,260.34 b. 3,280.34 c. 3,270.34 d. 3,250.34 solution please in written with regards to multiple choices
Alpha company borrows $ 2000 for six years at 8%. At the end of six years, it renews the loan for the amount due plus $ 2000 more for two years at 8%. The lump sum due equals to: Select one: a. $1035 b. $6035 27 c. $4035 d. $2035
Towline Corporation borrowed S75,000.00 at 11% compounded monthly for 10 years to buy a warehouse. Equal payments are made at the end of every month. (a) Determine the size of the monthly payments (b) Compute the interest included in payment 37. (c) Determine the principal repaid in payment period 7. (d) Construct a partial amortization schedule showing details of the first three payments, the last three payments, and totals (a) The size of the monthly payment is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
Lime Co. incurs a $4,000 note with equal principal installment payments due for the next eight years. What is the amount of the current portion of the noncurrent note payable due in the second year? A. $800 B. $1,000 C. nothing, since this is a noncurrent note payment D. $500
s
A store amortizes a $75,000 loan at 10% compounded quarterly with quartlerly payments of $2985.72 for 10 years. How much will be the unpaid balance after 7 years?
9. A company borrows 1,000,000 at an annual effective discount rate of 4%. The loan is to be repaid with n annual payments of 100,000 plus a drop payment one year after the nth payment. The first payment is due two years after the loan is taken out. Calculate the amount of the drop payment. A 87.072.14 B 90,700.14 C 94,479.31 D 98,415.95 E 99,999.99
A loan of $ 10,000 is amortized by equal annual payments for 30 years at an effective annual interest rate of 10 % Determine the year in which the interest portion of the payment is most nearly equal to one-half of the payment. The year that the interest portion of payment is most nearly equal to one-half of the payment= ?
A debt of $13,000 with interest at 5% compounded semi-annually is repaid by payments of $1,850 made at the end of every 3 months. Construct an amortization schedule showing the total paid and the total cost of the debt. Complete the amorization schedule. (Round to the nearest cent as needed.) Outstanding Principal Balance $13,000 Payment Number Amount Paid Interest Paid Principal Repaid 1 $1,850 2 $1,850 3 $1,850 $ $ 4 $1,850 $ 5 $1,850 $4 6 $1.850 $ 7 $1,850 $ $ 8 $0 The total paid is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) The total interest is S
A lender lends $10000 which is to be repaid in annual payments of $2100 for 6 years. Which of the following shows the timeline of the loan from the lenders perspective?
a) A bank made a 4-year 12% amortizing $2,500,000 loan with equal payments. What is the amount of interest and principal paid at the end of the 3rd year? What is the balance on the loan at the end of the 3rd year? b) Assume instead the bank demands that the borrower pay interest only for the first two years and then principal payments of $1,250,000 in years 3 and 4. What is the amount of interest and principal paid at the end of the 3rd year? What is the balance on the loan at the end of the 3rd year? Assume the same 12% rate of interest. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac).
A company issues a $10,000 two-year, 4% note payable, repayable in 8 quarterly installments with fixed principal payments. How much is the first installment payment?

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