What is the total amount you will pay if you do not pay the loan within the term and meet all the conditions of the loan? Assume that the loan is compounding monthly. First you need to calculate the payment; so what is TVM variable: the number of periods N?

Suppose that you want to take out a loan and that your local bank wants to charge you an annual real interest rate equal to 3%. Assuming that the annualized expected rate of inflation over the life of the loan is 1%, determine the nominal interest rate that the bank will charge you. What was the actual real interest rate on the loan if, over the life of the loan, actual inflation is 0.5%?

Find the monthly payment needed to amortize principle and interest for the fixed rate mortgage. Use eithr the regular monthly payment formula or the given table.

Select the correct choice that completes the sentence below. The rebate amount is equal to the rebate fraction O A. multiplied by the total finance charge O B. multiplied by the number of months of a loan OC. divided by the number of weeks of the loan O D. divided by the total interest

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What are the Effects of Maturity on Monthly Payments on Fully Amortizing Loans?

Task: Assume that at time 0 a sum L is lent for a series of n yearly payments. The rth payment, of amount x, is due at the end of the rth year. Let the effective annual interest rate for the rth year be i,. Give an identity which expresses L in terms of the x, and i,. Answer: The identity is [ Select ] [ Select ] L = x_1 (1+i_1)^(-1) + x_2 (1+i_1)^(-1) (1+i_2)^(-2) + .. + x_n (1+i_1)^(-1) (1+i_2)^(-2) ... (1+i_n)^(-n) L = x_1 (1+i_1) + x_2 (1+i_1) (1+i_2) + ... + x_n (1+i_1) (1+i_2) ... (1+i_n) L = x_1 (1+i_1)^(-1) + x_2 (1+i_1)^(-1) (1+i_2)^(-1) + .. + x_n (1+i_1)^(-1) (1+i_2)^(-1) ... (1+i_n)^(-1) Question 3 L = x_1 (1+i_1) + x_2 (1+i_1) (1+i_2)^2 + ... + x_n (1+i_1) (1+i_2)^2 ... (1+i_n)^n

Which of the following statements is CORRECT? Question 2 options: a) The proportion of the payment that goes toward interest on a fully amortized loan increases over time. b) An investment that has a nomiral rate of 6% with semiannual payments will have an effective rate that is smaller than 6%. c) If a loan or investment has annual payments, then the effective, periodic, and nominal rates of interest will all be different. d) The present value of a 3-year, $150 ordinary annuity will exceed the present value of a 3-year, $150 annuity due. e) if a loan has a nominal annual rate of 7%, then the effective rate will never be less than 7%.

the intereswt rate a company pays on 1 - year, 5-year loan depends on?

1. What is the different between an ordinary annuity and an annuity due? Which occursmore in practice? Give a common example of both. 2. Using the example of a savings account, explain the difference between the effectiveannual rate and the annual percentage rate. 3. A mortgage instrument pays $1.5 million at the end of each of the next two years. Aninvestor has an alternative investment with the same amount of risk that will payinterest at 8% compounded semiannually. what the investor should pay for themortgage instrument?