You borrow $11,000 from the bank at an interest rate of 6%, compounded annually. You are...
You borrow $11,000 from the bank at an interest rate of 6%, compounded annually. You are required to make 10 equal end of-year payments to pay off the loan.
a) What is the amount of these equal payments?
b) What is the amount of the 10 payments if the first payment is not made until 3 years after receipt of the money?
Homework Answers
Rate = 6%
PV = 11000
Number of Periods = 10
a) Amount of Equal Payments = 11000/(1-(1+6%)-10)/6% =
1494.55
b) Value of Loan amount after 3 years = 11000*(1+6%)3 =
13,101.18
Amount of Equal Payments =13,101.18/(1-(1+6%)-10)/6% =
1780.03
Please Discuss in case of Doubt
Best of Luck. God Bless
Please Rate Well
Add Answer to:
You borrow $11,000 from the bank at an interest rate of 6%,
compounded annually. You are...
4. You are about to borrow $16,000 from a bank at an interest rate of 7%...
4. You are about to borrow $16,000 from a bank at an interest rate of 7% compounded annually. You are required to make five equal repayments in the amount of $3,500 per year, with the first repayment occurring at the end of year 1. a. Show the interest payment and principal payment in each year. b. How much is still owing at the end of year 5? c. What annual payments would be required to completely pay off the loan...
1) Carlos has borrowed $8,000 for 8 years at 6% compounded semi-annually. He will repay interest...
1) Carlos has borrowed $8,000 for 8 years at 6% compounded semi-annually. He will repay interest every 6 months plus principal at maturity. He will also deposit X every 6 months into a sinking fund paying 5% compounded semi-annually to pay off the principal at maturity. a) Find X. Carlos goes bankrupt at the end of year 6, just after making his interest payment and sinking fund deposit. The bank confiscates the money in the sinking fund but gets no...
You need $300,000 to buy a house. You decide to borrow money from the bank to...
You need $300,000 to buy a house. You decide to borrow money from the bank to finance your mortgage. Assume that the bank charges a fixed annual interest rate of 4.50 percent and the term of the loan is 30 years. If you are required to make an equal payment every year for 30 years to pay off the loan, what is the annual payment? (Note that banks typically require monthly mortgage payments. For this problem, however, lets assume for...
1.Four years ago a person borrowed $15,000 at an interest rate of 10% compounded annually and...
1.Four years ago a person borrowed $15,000 at an interest rate of 10% compounded annually and agreed to pay it back in equal payments over a 10 year period. This same person now wants to pay off the remaining amount of the loan. How much should this person pay? Assume that she has just made the 3rd payment. 2.What is the accumulated amount resulting from a series of equal yearly deposits of $1,000 for 6 years if the interest rate...
Your brother plans to borrow $37,000 at a 6.8% interest rate compounded annually. The contract terms...
Your brother plans to borrow $37,000 at a 6.8% interest rate compounded annually. The contract terms require your brother to amortize the loan with 8 equal payments each made at the end of each year. He asks for your help to construct an amortization schedule showing details of the payments. Answer the following question: For the first payment, how much of it is interest? Do not enter text or characters such as dollar sign and comma. Answer:
Your brother plans to borrow $37,000 at a 6.8% interest rate compounded annually. The contract terms...
Your brother plans to borrow $37,000 at a 6.8% interest rate compounded annually. The contract terms require your brother to amortize the loan with 8 equal payments each made at the end of each year. He asks for your help to construct an amortization schedule showing details of the payments. Answer the following question: For the second year, how much payment amount does your brother need to make? Select one: a. $5756.90 b. $3632.37 c. $5756.898704 d. $6148.37 e. $3632.367816...
2. (10 pts) You borrow $40,000 from the local bank at 5% APR, compounded monthly on...
2. (10 pts) You borrow $40,000 from the local bank at 5% APR, compounded monthly on a 6-year loan but you want to pay for the loan with payments every four months. (a) What is your effective interest on your 4-month payment? (b) What is your payment made every four months? (c) What is the APY for your loan with your payments??
Bob Pearson borrowed $24000 from a bank at an interest rate of 9% compounded monthly. The...
Bob Pearson borrowed $24000 from a bank at an interest rate of 9% compounded monthly. The loan will be repaid in 72 equal monthly installments over 6 years. What is his monthly payment amount? Immediately after his 20th payment, Bob desires to pay off the remainder of the loan in a single payment. What is this remaining balance? Monthly Payment =$ Single payment for remaining Balance after 20th payment = $ Last saved at 10:20:17
a student takes an education loan from a bank. He expects to borrow $40,000 a year...
a student takes an education loan from a bank. He expects to borrow $40,000 a year for the next 4 years (the first amount is drawn immediately, on 2/28/2010). The annual interest rate being charged is 8%; for the first several years, the interest is not paid, but it is added to the loan at the end of each year. He is required to repay the loan in equal annual payments starting 7 years from the date of the loan...
Bob Pearson borrowed $20000 from a bank at an interest rate of 11% compounded monthly. The...
Bob Pearson borrowed $20000 from a bank at an interest rate of 11% compounded monthly. The loan will be repaid in 72 equal monthly installments over 6 years. What is his monthly payment amount? Immediately after his 20th payment, Bob desires to pay off the remainder of the loan in a single payment. What is this remaining balance? Monthly Payment =$ Single payment for remaining Balance after 20th payment = $
4. You are about to borrow $16,000 from a bank at an interest rate of 7% compounded annually. You are required to make five equal repayments in the amount of $3,500 per year, with the first repayment occurring at the end of year 1. a. Show the interest payment and principal payment in each year. b. How much is still owing at the end of year 5? c. What annual payments would be required to completely pay off the loan...
1) Carlos has borrowed $8,000 for 8 years at 6% compounded semi-annually. He will repay interest every 6 months plus principal at maturity. He will also deposit X every 6 months into a sinking fund paying 5% compounded semi-annually to pay off the principal at maturity. a) Find X. Carlos goes bankrupt at the end of year 6, just after making his interest payment and sinking fund deposit. The bank confiscates the money in the sinking fund but gets no...
Your brother plans to borrow $37,000 at a 6.8% interest rate compounded annually. The contract terms require your brother to amortize the loan with 8 equal payments each made at the end of each year. He asks for your help to construct an amortization schedule showing details of the payments. Answer the following question: For the first payment, how much of it is interest? Do not enter text or characters such as dollar sign and comma. Answer:
Your brother plans to borrow $37,000 at a 6.8% interest rate compounded annually. The contract terms require your brother to amortize the loan with 8 equal payments each made at the end of each year. He asks for your help to construct an amortization schedule showing details of the payments. Answer the following question: For the second year, how much payment amount does your brother need to make? Select one: a. $5756.90 b. $3632.37 c. $5756.898704 d. $6148.37 e. $3632.367816...
Bob Pearson borrowed $24000 from a bank at an interest rate of 9% compounded monthly. The loan will be repaid in 72 equal monthly installments over 6 years. What is his monthly payment amount? Immediately after his 20th payment, Bob desires to pay off the remainder of the loan in a single payment. What is this remaining balance? Monthly Payment =$ Single payment for remaining Balance after 20th payment = $ Last saved at 10:20:17
Bob Pearson borrowed $20000 from a bank at an interest rate of 11% compounded monthly. The loan will be repaid in 72 equal monthly installments over 6 years. What is his monthly payment amount? Immediately after his 20th payment, Bob desires to pay off the remainder of the loan in a single payment. What is this remaining balance? Monthly Payment =$ Single payment for remaining Balance after 20th payment = $
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 11 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 11 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 11 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 11 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 11 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 11 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 11 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 11 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 11 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 11 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 11 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 11 months ago