1. Warren borrowed RM4,040 from John at an interest rate of 4.4% compounded weekly. The loan is to be repaid by four payments. The first payment, RM1,010, is due two years after the date of the loan. The second and third payments are due three and five years respectively, after the initial loan. The last payment is due six years after the first payment where he paid RM404. Calculate the amounts of the second and third payments if the second payment is to be thrice the size of the third payment.

1. Warren borrowed RM4,040 from John at an interest rate of 4.4% compounded weekly. The loan is to be repaid by four payments. The first payment, RM1,010, is due two years after the date of the loan. The second and third payments are due three and five years respectively, after the initial loan. The last payment is due six years after the first payment where he paid RM404. Calculate the amounts of the second and third payments if the second payment is to be thrice the size of the third payment.

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 25PROB

See similar textbooks

Similar questions

If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?
Calculating and comparing add-on and simple interest loans. Eli Nelson is borrowing 10,000 for five years at 7 percent. Payments, which are made on a monthly basis, are determined using the add-on method. a. How much total interest will Eli pay on the loan if it is held for the full five-year term? b. What are Elis monthly payments? c. How much higher are the monthly payments under the add-on method than under the simple interest method?
Johnson takes a loan of RM600,000 from a bank. The bank charges an interest rate of 6.6%per annum compounded monthly. He agrees to repay his loan by making two equal payments at the end of the third year and the fifth year. Question Find the repayment amount.
A man obtained a loan from the bank worth P 400,000.00 payable within 4 years from the time the loan was granted in equal monthly installment. The first payment is due after 1 year. If the interest rate is 8% compounded annually. Calculate the amount of his monthly payment.
Liam loaned an amount of 15,581 and he will pay it with an amount of 25,501 after 9 years. What is the agreed interest rate between Liam and the bank compounded annually in percent?
c. By how much will the amortization period shorten if Shawn made an extra payment of $54,000 at the end of the year 3? years E months Express the answer in years and months, rounded to the next month
A person borrowed a loan and pledged to repay it and its interest using the amortization method, out of the loan principal with interest in four installments. Each installment is paid at the end of every six months. If you know that the interest rate is 5% annually and that the first installment of the principal amount and its interest is 840 dinars, so the value of the loan amount is??A - 3200 dinarsB - 3600 dinarsc 4000 dinarsD - 4500 dinars.
Tom Bond borrowed $6,200 at 6,% for three years compounded annually. What is the compound amount of the loan and how much interest will he pay on the loan? Compound amount = S (Round to the nearest cent as needed.)
Every three years, D will pay Mr. J 5,000 at 8% rate to settle his loan. Mr. D will use which formula to compare with cash payment? A. Future value of IB. FV of AnnuityC. Present Value of ID.
Anna received a loan of $29,000 at 4.5% compounded semi-annually. He had to make payments at the end of every half-year for a period of 6 years to settle the loan. a. Calculate the size of payments. Round to the nearest cent b. Fill in the partial amortization schedule for the loan, rounding your answers to two decimal places. Payment Number 0 Payment Interest Portion Principal Portion Principal Balance $29,000.00
Mr. X financed his house by taking a loan of Rs. 71, 00,000 @ 10% p.a. and haspaid Rs.15, 00,000 as down payment. The loan is to be repaid in 10 equalinstalments starting at the end of the first year. Calculate the amount of equalannual instalment and total interest paid upon repayment of loan.
Jonathan wishes to borrow $180 000 from a commercial bank. He was told that the loan would be amortized over five years and that payment could be made at the beginning or at the end of each year. Please assist Jonathan by answering the following questions. a. Explain to Jonathan, what is the purpose of a loan amortization schedule? b. Jonathan borrows $180 000 at 9% per annum for five years. The loan is repayable in five equal instalments at the beginning of the year. What is the annual payment?