You plan to borrow $32,200 at an 8.2% annual interest rate. The terms require you to amortize the loan with 7 equal end-of-year payments. How much interest would you be paying in Year 2? Oa.$5,755.17 Ob. $2,346.29 Oc$2,384.99 Od. $2,640,40 e. 16,227.10

Q: You are loaned $300 at the end of years 1 and 2, and loaned X at the end of year 3. You pay this…

A: We will use the concept of time value of money. Here each payment is made in a different time period…

Q: You borrowed $660,000 in your mortgage to purchase a property. The mortgage requires equal annual…

A: Annual payments can be calculated by using the Excel formula ''=PMT''Note : PMT refers to…

Q: What would the monthly payment be? It is a zero amortizing loan

A: Given  Pv=300000*75%=225000 i=6%/12=0.5% n=30*12=360 Pv=pmt*(1-(1+i)^-n)/i

Q: What is the FV of a RO 800, 8-year loan with 2% monthly compound interest?   a. 3328.91 b.…

A: Using excel FV function

Q: Your company is offering a mortage loan with the following terms: 5.00% annual interest rate. Period…

A: A mortgage loan is a financial arrangement where a lender provides funds to a borrower to purchase…

Q: 10) Compute the simple interest and final amount of each loan Principal Rate Time A P 400 7% 1 year…

A: Simple interest is that amount of interest which is being charged on the principal amount for the…

Q: You borrow $11,000 over a 5-year term. The loan is structured as an amortized loan with annual…

A: Loan installment is that which is paid by borrower to lender for a specified period of time. This…

Q: What is the annual interest rate if a simple interest loan of $10,000 for 4 years charges a total of…

A: We need to use simple interest formula to solve this question Simple interest =Principal×Rate×Time

Q: What is the difference in interest paid between a 30-year mortgage loan and a 15-year mortgage loan…

A: Interest: It represents the monetary charge on the amount borrowed by the borrower from the lender.…

Q: 9. A borrower takes out a 30-year mortgage loan for $285,000 with an interest rate of 4.125%.…

A: Payment per period can be calculated using PMT function in excel.PMT(rate, nper, pv, [fv],…

Q: You have taken a personal loan from Bank Muscat for 15,000 OMR and charged with an interest rate of…

A: Loan Amortization Table  is as under -

Q: 1. A man borrows P2,500 for 2 years at 8 %4%. How much and what will be the amount at the end of the…

A: When the bank deducts interest from the loan amount it is known as a discount. When the discount is…

Q: Assume a $620,000 loan over a 20 year period at a fixed rate of 5.85%. How much would a borrower…

A: Loan amount "PV" = $620000 Annual rate = 5.85% Monthly rate "r" = 5.85%/12 NUmber of years = 20…

Q: What is the quarterly payment on a loan of $22,000 for 5 years at i= 8% per year, compounded…

A: Mortgage/ Borrowings:  Borrowings are the loan which is taken by the individual to meet its…

Q: bank also charges you a loan initiation fee of $25, which is taken out of the initial proceeds of…

A: The effective annual interest rate is a crucial concept in finance that is used to describe the true…

Q: Drake Corporation takes out a term loan payable in 12 year-end annual installments of P5,000 each.…

A: Annual payment (P) = P 5000 Interest rate (r) = 14% Number of annual payments (n) = 12

Q: What is the APR for a fed ra

A: APR means annual percentage rate. APR means the borrowing cost incurred by the borrower for a…

Q: A loan is to be paid by installments of $800 1-month from now, $600 3-months from now, and $500 4-…

A: Loans are paid by the amount that carry the interest on the loan and paid by the single equivalent…

Q: months. The interest rate is 7% compounded semi-annua determined to be 20.1488. Find the size of the…

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

Q: Suppose you have $2,200 and plan to purchase a 10-year certificate of deposit (CD) that pays 10.9%…

A: b. $6,190.68 Explanation:We can calculate the future value of the CD using the compound interest…

Q: What is the Effective Annual interest Rate (EAR) of the following car loan?. The loan amount is…

A: Calculation of Effective Annual Rate By using Rate function of Excel=RATE(nper,pmt,pv)wherenper is…

Q: Loan amount = $175,591 Assume that your broker agents introduce/assess you to a local bank of…

A: Mortgage relates to a long-term fixed asset financing option where bank makes payment for fixed…

Q: A LOAN OF P80,000 IS MADE FOR A PERIOD OF 18 MONTHS AT A SIMPLE INTEREST RATE OF 10%. WHAT FUTURE…

A: Simple interest measures the interest payment on the principal amount for a period of time without…

Q: A borrower takes out a 30-year mortgage loan for $100,000with an interest rate of 6% plus 4 points.…

A: Effective annual interest rate is the percentage at which the amount of interest earned on an…

Q: Which expression best calculates your monthly payment for a $10,000 conventional loan that you…

A: Compound = n = Monthly = 12Present Value = pv = $10,000Annual Interest Rate = r = 4%Time = t = 5…

Q: Construct an amortization schedule for a $1.000, 3.5% annual rate loan with 3 equal payments. The…

A: Annual Payment = [PV of Annuity * r] /[1 - (1 + r)-n]

Q: 5% annual rate loan with 3 equal payments. The first payment will be made at the end of the1st year.…

A: Information Provided: Loan value = $1000 Annual rate = 5% Number of payments = 3

Q: What is the monthly payment size of a 25-year mortgage for $100 000 and an interest rate of 6%…

A: Monthly payment refers to an amount that is paid on monthly basis including the principal and…

Q: What is the monthly payment on a $160,000, 30-year mortgage at 6% with a $40,000 balloon payment? O…

A: A mortgage refers to a loan that is borrowed for purchasing or maintaining a property. The loan is…

Q: A fully amortizing mortgage loan is made for $100,000 for 15 years. The interest rate is 6 percent…

A: Loan installment is that which is paid by borrower to lender for a specified period of time. This…

Q: A loan of $20,000 is to be amortized in 10 level annual payments. The interest rate for the first 3…

A: Loan  =$ 20,000 Interest Rate for first 3 years =4% Interest rate for next 7 years =6%

Q: What is the maturity value of a $7,500 loan for 16 months at 4.8% compounded monthly? Also. how much…

A: Future value is the worth of any asset or any sum of money at a future date when such asset or money…

Q: What is the effective annual interest rate on the loan? Car purchased for $29,000 with a 5 year loan…

A: Compound = n = Monthly = 12Interest Rate = r = 9%

Q: You plan to borrow P10,000 from your bank, which offers to lend you the money at a 7.5% nominal rate…

A: Nominal rate (D)= 7.5% Borrowed amount = P10,000

Q: Part a. Loan payments you borrow $100,000 over a period of 30 years at a fixed APR of 5.5% calculate…

A: The monthly payment can be derived from the following formula PMT=P×APRn1-1+APRn(-nY

Q: If someone borrow $4000 with interest rate 4% and has to return the loan with equal payment in 4…

A: loan repayments are usually monthly EMIs or annual payments. It consists of interest and principal…

Q: What is the FV of a RO 800, 6-year loan with 2% monthly compound interest?   a. All options are…

A: Using excel FV function

Q: You take out a loan of $1,250 under simple interest with 4.28% APR. The term of the loan is four…

A: Information Provided: Loan amount = $1250 APR = 4.28% Term = 4 years

Q: You take out a traditional 30 year mortgage for $292,490. It has a fixed interest rate of 4.25% and…

A: EMI, or Equated Monthly Installment, is a fixed monthly payment made by a borrower to repay a loan,…

Q: A LOAN OF P80,000 IS MADE FOR A PERIOD OF 18 MONTHS AT A SIMPLE INTEREST RATE OF 10%. WHAT DUE AT…

A: Loan amount = P80,000 Annual interest rate = 0.10 or 10% Annual period = 1.5 (i.e. 18 / 12) Amount…

Q: Find the amount (in $) of interest on the loan.

A: Interest: It refers to the monetary charge paid by the borrower to the lender for taking a loan. It…

Q: What will be the compounded amount on a loan of P1.500 at 12% interest compounded quarterly for I…

A: Loan amount (PV) = P 1500 Annual interest rate = 12% Quarterly interest rate (R) = 12%/4 = 3% Period…

Q: FRM. (Term=30 years, Note Rate = 5.25, Loan Amount = 800,000, Points=2) What is the FTL annual…

A: Time period is 30 years Loan amount is 800,000 Points =2 To Find: Annual percentage rate