A man made a loan of P100,000 at a rate of 15% per annum and promise to pay it according to the following manner, P30,000 at the end of 1st year, unknown payment at the end of 2nd year and a final payment of P76,374.38 at the end of 4th year. Find the unknown payment made by the man.
with solution
A man made a loan of P100,000 at a rate of 15% per annum and promise...
A loan is made for five years at a simple interest rate of 12% per annum. What is the equivalent annual effective rate of discount during the fourth year of the loan?
15. Find the amount of the following payments at the end of 5th year. P3000 at the end of 1st yr, P45000 at the end of 2nd year and p6000 at the end of 4th year, if money worth 12% per annum.
Kareena obtained a $500,000 housing loan. The loan interest rate is 6% per annum and the agreed loan repayment period is 25 years. Calculate Kareena’s monthly mortgage payment.
$5,000 is deposited today into a bank account. The account earns 3.2% per annum compounded half yearly for the first 7 years, then 8.2% per annum compounded quarterly thereafter. Assuming no further deposits or withdrawals are made, (d) Calculate the account balance 10 years from today. A loan of $100,000 is made today. The borrower will make equal repayments of $3800.75 per month with the first payment being exactly one month from today. The interest being charged on this loan...
1) A loan of RM 10,000 at a flat rate of 10% per annum was repaid by making 24 monthly instalment.Find A) the total interest charged, B)the monthly payment,and C)the outstanding loan just after the tenth payment using the rule of 78.
1. Narelle borrows $600,000 on a 25-year property loan at 4 percent per annum compounding monthly. The loan provides for interest-only payments for 5 years and then reverts to principal and interest repayments sufficient to repay the loan within the original 25-year period. Assume rates do not change. a) Calculate the monthly repayment for the first 5 years. (CLUE: it is INTEREST ONLY) (2 marks) b) Calculate the new monthly repayment after 5 years assuming the interest rate does not...
Problem Set 1. A man is paying off a debt of $15,000 with regular payments of $300 at the end of each month. Annual interest is 18% compounded monthly. (a) Find the exact amount of time to at least five decimal places that it will take to pay off this loan. (b) Determine the size of the balloon payment to be made to pay off the loan at the time of the last regular payment. (c) Determine the size of...
You have taken out a loan of $300 000 at an interest rate of 3% per annum compounded quarterly. You plan to repay the loan in 240 reducing-principal payments made at the end of each quarter and starting at the end of the first quarter. (a) How much is the principal reduced by after each payment? (b) Write down an expression for the loan balance before repayment Am at the end of period m. This means that A1 should give...
Assume the prevailing interest rate is 5% per annum. A 4 -year lease agreement requires you to pay $1650 up front, followed by payments of $1650, $1650, and $1650 at the beginning of each of the following three years, respectively. What would the payment on a 4-year lease with a constant annual payment have to offer for you to be indifferent between the two lease options? Assume that the first payment on the constant annual payment lease will be made...
Consider a loan for $1000 with an interest rate of 10% per year. Suppose that there is a payment of $200 at the end of 1 year, a payment of 500 at the end 2 years, and a final payment at the end of 3 years to completely repay the loan. What is the final payment?