You have debt payments of $500 due three months ago, $1,000 due today, and $2,000 due in fifteen months. You want to combine these debt payments into one payment due six months from today at 12% per year compounded monthly. Calculate the size of that payment.
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You have debt payments of $500 due three months ago, $1,000 due today, and $2,000 due in fifteen months. You want to combine these debt payments into one payment due six months from today at 12% per year compounded monthly. Calculate the size of that payment.
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- Suppose that you borrow $10,000 from a bank to purchase a car. You agree with the bank to repay the loan into equal payments every four months for one year. If the interest rate is 16% compounded quarterly, calculate the interest paid, principal paid, and the end balance for each period until the loan is totally repaid.You have taken out a loan that requires you to repay $200 per month for 10 years at 12% annual percentage rate with monthly compounding. The first payment occurs today. What is the current value of this loan?Assume that you can get a loan from NCB for $264,500 for three years to buy an item of your choosing. The loan must be repaid in 36 equal monthly payments. The annual interest rate on the loan is 12 percent of the unpaid balance. How large are the monthly payments?
- You are taking a $2000 loan. You will pay it back in four equal amounts, paid every six months starting 3 years from now. The interest rate is 14% compounded semiannually. Calculate the amount of each semiannual payment.You have borrowed $14,300 at a compound annual interest rate of 15 percent. You feel that you will be able to make annual payments of $3,000 per year on your loan. (Payments include both principal and interest.) How long will it be before the loan is entirely paid off (to the nearest year)?using excel do the following Create an amoritization schedule for a $1,000,000 loan that requires equal annual payments in each of the next 10 years. The annual rate is 6%. How much is the remaining loan balance after 5 years? Analyze the amount of each equal payment that goes towards interest and principal in each year. What do you notice?
- You borrow $50, 000 for 5 years. This is an amortized load, meaning that payments are the same each month, and the loan is fully paid off with final payment. The quoted interest rate (or APR) in 12% per year. What is the monthly payment?You borrow $10,000 at 14 percent compound annual interest for four years. The loan is repayable in four equal annual installments payable at the end of each year. What is the annual payment that will completely amortize the loan over four years? (You may wish to round to the nearest dollar.) Of each equal payment, what is the amount of interest? The amount of loan principal? (Hint: In early years, the payment is composed largely of interest, whereas at the end it is mainly principal.)Suppose you have accumulated $22,000 in credit card debt. If the interest rate on the credit card is 22.7% APR compounded monthly, how many years will it take you to pay off this debt if you pay $500 per month?
- You borrow $5,000 and have to pay $5,300 six months later. Calculate the effective annual rate of this loan.Suppose you are thinking of availing a loan of P100,000 at Pag-ibig Funds for house repairs after typhoon Jolina. Interest is pegged at 14% compounded quarterly, and you intend to make equal quarterly payments to pay-off this loan in three years. Set-up an amortization schedule (table) to serve as your guide in tracking the payments made, interest paid, principal repaid and outstanding principal for each period.You have maxed out your $10,000 credit card, which is being charged 12.8% annual interest compounded daily. What is the minimum monthly payment to continue to break even? How much should you pay each week to get out of debt within one year?
