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School
Regent University *
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Course
320
Subject
Finance
Date
Nov 24, 2024
Type
jpeg
Pages
1
Uploaded by AgentCoyote2925
Fully
amortized
loan
(annual
payments
for
principal
and
interest
with
the
same
amount
each
year).
Chuck
Ponzi
has
talked
an
elderly
woman
into
loaning
him
$10,000
for
a
new
business
venture.
She
has,
however,
successfully
passed
a
finance
class
and
requires
Chuck
to
sign
a
binding
contract
on
repayment
of
the
$10,000
with
an
annual
interest
rate
of
10%
over
the
next
20
years.
Determine
the
cash
flow
to
the
woman
under
a
fully
amortized
loan,
in
which
Ponzi
will
make
equal
annual
payments
at
the
end
of
each
year
so
that
the
final
payment
will
completely
retire
the
original
$10,000
loan.
Review
Only
0
Click
the
icon
to
see
the
Worked
Solution
(Using
an
Equation).
o
Click
the
icon
to
see
the
Worked
Solution
(Using
a
Calculator).
o
Click
the
icon
to
see
the
Worked
Solution
(Using
a
Spreadsheet).
What
is
the
amount
of
payment
that
the
woman
will
receive
at
the
end
of
years
1
through
207
$
1,1774.60
(Round
to
the
nearest
cent.)
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Related Questions
Please see attached
arrow_forward
Discount loan (interest and principal at maturity). Chuck Ponzi has talked an elderly woman into loaning him $20,000 for a new business
venture. She has, however, successfully passed a finance class and requires Chuck to sign a binding contract on repayment of the $20,000
with an annual interest rate of 9% over the next 20 years. Determine the cash flow to the woman under a discount loan, in which Ponzi will have
a lump-sum payment at the end of the contract.
What is the amount of payment that the woman will receive at the end of years 1 through 19?
(Round to the nearest cent.)
$
arrow_forward
Discount loan (interest and principal at maturity). Chuck Ponzi has talked an elderly woman into loaning him $20,000 for a new business venture.
She has, however, successfully passed a finance class and requires Chuck to sign a binding contract on repayment of the $20,000 with an annual
interest rate of 9% over the next 20 years. Determine the cash flow to the woman under a discount loan, in which Ponzi will have a lump-sum
payment at the end of the contract.
What is the amount of payment that the woman will receive at the end of years 1 through 19?
$ 0.00 (Round to the nearest cent.)
What is the amount of payment that the woman will receive at the end of the loan in year 20?
(Round to the nearest cent.)
arrow_forward
Discount loan (interest and principal at maturity). Chuck Ponzi has talked an elderly woman into loaning him
$10,000
for a new business venture. She has, however, successfully passed a finance class and requires Chuck to sign a binding contract on repayment of the
$10,000
with an annual interest rate of
8%
over the next
10
years. Determine the cash flow to the woman under a discount loan, in which Ponzi will have a lump-sum payment at the end of the contract.
What is the amount of payment that the woman will receive at the end of years 1 through
9?
$nothing
(Round to the nearest cent.)
What is the amount of payment that the woman will receive at the end of the loan in year
10?
$nothing
(Round to the nearest cent.)
arrow_forward
Discount loan (interest and principal at maturity). Chuck Ponzi has talked an elderly woman into loaning him
$45,000
for a new business venture. She has, however, successfully passed a finance class and requires Chuck to sign a binding contract on repayment of the
$45,000
with an annual interest rate of
11%
over the next
5
years. Determine the cash flow to the woman under a discount loan, in which Ponzi will have a lump-sum payment at the end of the contract.
What is the amount of payment that the woman will receive at the end of years 1 through
4?
$nothing
(Round to the nearest cent.)
arrow_forward
Interest-only loan (regular interest payments each year and principal at maturity). Chuck Ponzi has talked an elderly woman into loaning
him $25,000 for a new business venture. She has, however, successfully passed a finance class and requires Chuck to sign a binding contract
on repayment of the $25,000 with an annual interest rate of 10% over the next 5 years. Determine the cash flow to the woman under
an interest-only loan, in which Ponzi will pay the annual interest expense each year and pay the principal back at the end of the contract.
What is the amount of payment that the woman will receive at the end of years 1 through 4?
(Round to the nearest dollar.)
arrow_forward
Interest-only loan (regular interest payments each year and principal at maturity). OChuck Ponzi has talked an elderly woman into loaning him $20,000 for a new business venture. She has, however, successfully passed a
finance class and requires Chuck to sign a binding contract on repayment of the $20,000 with an annual interest rate of 7% over the next 10 years. Determine the cash flow to the woman under an interest-only loan, in which Ponzi
will pay the annual interest expense each year and pay the principal back at the end of the contract.
What is the amount of payment that the woman will receive at the end of years 1 through 9?
(Round to the nearest dollar.)
arrow_forward
nterest-only loan (regular interest payments each year and principal at maturity). Chuck Ponzi has talked an elderly woman into loaning him
$45,000
for a new business venture. She has, however, successfully passed a finance class and requires Chuck to sign a binding contract on repayment of the
$45,000
with an annual interest rate of
11%
over the next
10
years. Determine the cash flow to the woman under an interest-only loan, in which Ponzi will pay the annual interest expense each year and pay the principal back at the end of the contract.
What is the amount of payment that the woman will receive at the end of years 1 through
9?
$nothing
(Round to the nearest dollar.)
arrow_forward
Interest-only loan (regular interest payments each year and principal at maturity). Chuck Ponzi has talked an elderly woman into loaning him $40,000 for a new business venture. She has, however, successfully passed a finance class and requires Chuck to sign a binding contract on repayment of the $40,000 with an annual interest rate of 8% over the next 10 years. Determine the cash flow to the woman under an interest-only loan, in which Ponzi will pay the annual interest expense each year and pay the principal back at the end of the contract. Question content area bottom Part 1 What is the amount of payment that the woman will receive at the end of years 1 through 9? $enter your response here (Round to the nearest dollar.)\
( explain all point of question with proper address )
arrow_forward
Discount loan (interest and principal at maturity). Chuck Ponzi has talked an elderly woman into loaning him $45,000 for a new business venture. She has, however,
successfully passed a finance class and requires Chuck to sign a binding contract on repayment of the $45,000 with an annual interest rate of 11% over the next 5
Determine the cash flow to the woman under a discount loan, in which Ponzi will have a lump-sum payment at the end of the contract.
years.
.....
What is the amount of payment that the woman will receive at the end of years 1 through 4?
$
(Round to the nearest cent.)
arrow_forward
Chuck Ponzi has talked an elderly woman into loaning him
$50,000
for a new business venture. She has, however, successfully passed a finance class and requires Chuck to sign a binding contract on repayment of the
$50,000
with an annual interest rate of
11%
over the next
15
years. Determine the cash flow to the woman under a discount loan, in which Ponzi will have a lump-sum payment at the end of the contract.
What is the amount of payment that the woman will receive at the end of years 1 through
14?
arrow_forward
Chapter 4, Question 9. Please see attached
arrow_forward
Chuck Ponzi has talked an elderly woman into loaning him $35000 for a new business venture. She has, however, successfully passed a finance class and requires Chuck to sign a binding contract on repayment of the $35000 with an annual interest rate of 11% over the next 15 years. Determine the cash flow to the woman under an interest-only loan, in which Ponzi will pay the annual interest expense each year and pay the principal back at the end of the contract.
What is the amount of payment that the woman will receive at the end of the loan in year 15?
arrow_forward
910 is incorrect
arrow_forward
Chuck Ponzi has talked an elderly woman into loaning him $35,000 for a new business venture. She has, however, successfully passed a finance class and requires Chuck to sign a binding contract on repayment of the $35,000 with an annual interest rate of 8% over the next 5 years. Ponzi may choose to pay off the loan early if interest rates change during the next 5 years. Determine the ending balance of the loan each year under the three different payment plans:
a. If Chuck chooses the discount loan, what is the ending balance of the discount loan in year 1?
arrow_forward
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mary, a college student, needs to borrow $8000 today for her tuition. She agrees to pay back the loan in a lump-sum payment upon graduationg, 4 years from today. The lender agrees to lending at a fixed 3.85% interest rate during the loan period. what the total cost of Mary's student loan?
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please answer with correct calculations and explanations.
QUESTION:
Kari is purchasing a home for $220,000. The down payment is 25% and the balance will be financed with a year mortgage at 8%
and 4 discount points. Kari made a deposit of $30,000 (applied to the doen payment) when the sales contract was signed.
Kari also has three expenses: credit report, $70; appraisal fee, $110; title insurance premium, 1% of amount financed; title search,
$200; and attorney's fees, $500. Find the closing costs (in $).
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A couple plans to purchase a vacation home. The bank requires a 5%
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Complete the parts below. Do not round any intermediate computations.
Round your final answers to the nearest cent if necessary. If necessary,
refer to the list of financial formulas.
(a) Find the required down payment.
s
(b) Find the amount of the mortgage.
s
(c) Find the monthly payment.
$0
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