1. PEDRITO OBTAINS A LOAN FOR $140,000.00 FOR A TERM OF ONE YEAR AND EIGHT MONTHS WITH A SIMPLE INTEREST RATE OF 4.0 PER MONTH a) IF THE ACCRUED INTEREST IS PAID AT THE END OF EACH MONTH, HOW MUCH SHOULD YOU PAY? b) IF THE INTEREST OBTAINED IS PAID AT THE END OF THE ESTABLISHED PERIOD, HOW MUCH WILL YOU PAY IN TOTAL FOR INTEREST?

1. PEDRITO OBTAINS A LOAN FOR $140,000.00 FOR A TERM OF ONE YEAR AND EIGHT MONTHS WITH A SIMPLE INTEREST RATE OF 4.0 PER MONTH a) IF THE ACCRUED INTEREST IS PAID AT THE END OF EACH MONTH, HOW MUCH SHOULD YOU PAY? b) IF THE INTEREST OBTAINED IS PAID AT THE END OF THE ESTABLISHED PERIOD, HOW MUCH WILL YOU PAY IN TOTAL FOR INTEREST?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

For how long will Markus have to make payments of $116 at the end of every month to repay a loan of $3340 if intere is 4% per annum compounded semi-annually? State your answer in years and months (from 0 to 11 months). He will have to make payments for year(s) and month(s).
(Q) A borrower takes out an interest - only loan at 7% for $1,000,000 with a 10-year term. What is the monthly payment on this loan? (State your answer as a positive number, rounded to two decimal places.)
Julius takes out a loan of $8500 at 9.5% simple interest for three months. What is the maturity value of the loan?
2. Sue borrows $600,000 at 3.85%. The mortgage is for 30 years. A. What is the monthly payment? B. How much interest will be paid over the life of the loan? C. Recalculate the total interest rate if the rate changes from 3.85% to 6.85 %. What is the total interest paid over the life of the 6.85% loan?
Ross Land has a loan of $8,500 compounded quarterly for four years at 4%. What is the effective interest rate for the loan? Click here to view page 1 of the future value table. Click here to view page 2 of the future value table. The effective interest rate is %. (Round to two decimal places as needed.)
You plan to borrow $33,100 at a 7.0% 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? O a. $2,077.39 b. $2,049.26 c. $6,141.81 d. $2,317.00 e. $5,740.01
Consider a 30-year home mortgage of $100,000 at 6% per year. What is the monthly payment? Use Theorem 1 as attached to make an amortization schedule of the first 6 months: Month (k) Principal P(k) Interest I(k) Balance due B(k) 1 2 3 4 5 6 where P(k) is the amount paid to the principal in the k’th payment, I(k) is the amount paid to interest in the k’th payment, B(k) is the balance due after the k’th payment.
Ife takes out a 3 year mortgage for $1,125,000 at an interest rate of i(2) = 4.500%. The amortization period is 30 years and she will make weekly payments. What is the outstanding balance at the end of 1 year? O a. $1,084,582.78 O b. $1,106,717.12 O c. $1,029,246.92 O d. $1,040,314.09 e. $1,128,851.46
Jim makes a simple interest loan of $5,800 at 16.35% for 18 months. Assume the loan period is determined using ordinary time. Find the interest paid. Find the maturity value.
Find the refund fraction on a 18-month loan with interest of $2,590 if the loan is paid in full with 14 months remaining. The refund fraction is| (Type an integer or a fraction.)
You plan to borrow $33,600 at a 6.5% 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? O a. $6,126.33 O b. $5,752.43 O c. $2,184.00 O d. $1,927.75 O e. $1,952.05
If $800 is borrowed and the interest after 6 months is $44, what is the annual interest rate for a simple interest loan?

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