6) A loan of 1000 at a nominal annual interest rate of 10% + x compounded monthly is repaid by four monthly payments, starting one month after the loan is made. The first two payments are amount X each and the final two are amount 3X. Construct the amortization schedule for this loan.

6) A loan of 1000 at a nominal annual interest rate of 10% + x compounded monthly is repaid by four monthly payments, starting one month after the loan is made. The first two payments are amount X each and the final two are amount 3X. Construct the amortization schedule for this loan.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 41P

See similar textbooks

Related questions

Q: Use aspreadsheet to create amortization schedules for the following five scenarios.What happens to…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Suppose a borrower makes a $100,000 loan with annual payments at a 10 percent rate and a 10-year…

A: Annuity: An annuity is the series of payments which is received or paid for a fixed period of…

Q: Complete the first three lines of an amortization schedule for the following loan: You borrow $…

A: Given:

Q: Complete the first three lines of an amortization schedule for the following loan: You borrow $ 5000…

A: Monthly payments for amortized loan…

Q: Find the semiannual payments to repay a debt of P100,000 in 5 equal payments with interest at 12%…

A: An amortization schedule is defined as the table, which includes the complete detail of periodic…

Q: Complete the following from the first three lines of an amortization schedule for the following…

A: Given: Loan = $225,000 Interest rate = 9% Years = 20

Q: The loan of 200,000 PLN is repaid in equal annual instalments for 20 years. The total yearly payment…

A: The interest rate on loan as well as the second installment principal and interest proportion can be…

Q: A $400 loan is to be amortized with eight quartely payments over 2 years. If the interest is at J4 =…

A: given, PV = $400 N = 2 M = 4 (quarterly payment) r=10%

Q: A loan of amount 1000 at a nominal annual interest rate of 12% compounded monthly is repaid by 6…

A: A loan refers to a contract where a borrower receives a sum from a lender on the promise that they…

Q: A loan is amortized over 5 years with monthly payments at a nominal interest rate of 12% compounded…

A: First monthly payment (M) = 200 Monthly growth rate (g) = 1% Monthly interest rate (r) = 12%/12 = 1%…

Q: Prepare the first row of a loan amortization schedule based on the following information. The loan…

A: Loan payment refers to the amount that is being paid by the borrower to the lender for the repayment…

Q: Prepare an amortization schedule for a three-year loan of $108,000. The interest rate is 9 percent…

A: In this we have to present value FACTOR and find annual equal payment.

Q: Prepare an amortization schedule for a three-year loan of $96,000. The interest rate is 9 percent…

A: A loan is a sum of money that is borrowed from a lender with the expectation that it will be paid…

Q: Prepare an amortization schedule for a three-year loan of $111,000. The interest rate is 10 percent…

A: A loan amortization table is a schedule of payback of a loan in equal installments planned at a…

Q: velop a complete amortization table for a loan of $4500, to be paid back in 24 uniform monthly…

A: Solution: PMT =PV / [(1 – (1+r) -N )) / r] PMT=MONTLY PAYMENT=?, PV = PRESENT VALUE=4500, r…

Q: an can be repaid in two ways: (i) a perpetuity-due with annual payment $1000; (ii) a 3-year…

A: Present value is a financial concept that allows us to determine the current worth of future cash…

Q: Find the first payment and the interest portion of the first payment.

A: 4 / 4 To find the first payment (X) and the interest portion of the first payment, we can use…

Q: Directions: Solve the following problems. A loan of P40,000is to be amortized by equal payments at…

A: Given Information :Amount of loan = P 40,000 Period of loan = 18 months = 1.5 years Annual interest…

Q: 4. Establish loan amortization schedules for 3-year loan of $20,000 (initial loan) with equal…

A: Amount of Loan = $20000 Interest Rate(r) = 5% Year (n)= 3 Let Annual Installment =P

Q: 13. Determine the annual payment on a OMR15,000 loan that is to be amortized over a four-year period…

A: The PMT function or concept can be used to determine the periodic payments required to accumulate a…

Q: Find the payment necessary to amortize a 8% loan of $1100 compounded quarterly, with 19 quarterly…

A: The payment size can be computed with the help of present value of annuity function.

Q: Complete the following from the first three lines of an amortization schedule for the following…

A: Loan amount (P) = $ 165000 Interest rate = 7.5% Monthly interest rate (r) = 7.5%/12 = 0.625% Period…

Q: Consider a loan of 1,000,000 which is to be amortized by 60 monthly payments. The interest rate is…

A: Given, Loan amount is 1,000,000 Number of payments is 60 Interest rate is 10%

Q: Create an amortization table for a 15-yr fully amortizing, 6% loan for $10 million. Assume annual…

A: Amortization of loans is an important application of the time value of money. It helps to know the…

Q: Determine the annual payment on a OMR15,000 loan that is to be amortized over a four-year period and…

A: Given, A= OMR15,000 n=4 r= 10%

Q: Prepare an amortization schedule for a five-year loan of $71,500. The interest rate is 7 percent per…

A: Amortization schedule for a five-year loan of $71,500 Caluclating Annual Payment on BA 2 PLUS…

Q: Titan Corporation has 10.1 million shares of common stock outstanding and 440,000 4.4 percent…

A: The weighted average cost of capital is a metric that determines the average capital cost that the…

Q: A N$1000 loan is repaid by annual payments of N$150, plus a smaller final payment. The first payment…

A: solution : given loan amount =$1000 interest rate =10% payment at end of each year…

Q: Use the Amortization Table to determine the payment required to amortize a loan of $7500 at an…

A: A loan is a financial arrangement in which one or more people, companies, or other entities lend…

Q: Establish loan amortization schedules for 3-year loan of $20,000 (initial loan) with equal payments…

A: Loan amortization is a type of loan where the borrower is required to pay periodical or scheduled…

Q: Find the payment necessary to amortize a 6% loan of $100,000 compounded annually, with 11 annual…

A: Loan amount = $100,000 Interest rate = 0.06 (i.e. 6%) Loan period = 11 years Annual payment = ?

Q: Prepare an amortization schedule for a five-year loan of $20,000 in its entirety. The interest rate…

A: The amortization schedule for a loan being repaid by a level annual payment, is required.

Q: Complete the following from the first three lines of an amortization schedule for the following…

A: A loan is a sort of debt that is taken on by an individual or another institution. The lender, which…

Question

6) A loan of 1000 at a nominal annual interest rate of 10% + x compounded monthly is
repaid by four monthly payments, starting one month after the loan is made. The first
two payments are amount X each and the final two are amount 3X. Construct the
amortization schedule for this loan.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps with 3 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

A loan of amount 1000 at a nominal annual interest rate of 12% compounded monthly is repaid by 6 monthly payments, starting one month after the loan is made. The first three payments are amount X each and the final three payments are amount 3X each. Construct the amortization schedule for this loan. Determine the sum of the principal repaid in the third payment and the interest in the fifth payment.
A $400 loan is to be amortized with eight quartely payments over 2 years. If the interest is at J4 = 10% a. Find the quartely payment b. Construct an amortization schedule for this loan payment.
Develop a complete amortization table for a loan of $4500, to be paid back in 24 uniform monthly installments, based on an interest rate of 6%. The amortization table must include the Payment Number, Principal Owed (beginning of period), Interest Owed in Each Period, Total Owed (end of each period), Principal Paid in Each Payment, Uniform Monthly Payment Amount. You must also show the equations used to calculate each column of thetable. You are encouraged to use spreadsheets. The entire table must be shown.
You are preparing a loan amortization table for a 1-year loan of $1000 with a monthly interest rate of 1%. What is your principal payment in month 3 of the amortization schedule?
4. Establish loan amortization schedules for 3-year loan of $20,000 (initial loan) with equal payments at the end of each year. The interest rate is 5 percent per year. i NOTE: PLEASE SHOW HOW YOU COMPUTE EACH OF THE ITEMS.
A loan of $5,000 with interest at 7.75% compounded annually is amortized by equal payments at the end of each year for five years. 1. Show your financial calculator inputs for the payment calculation. 2. Create a full amortization schedule for the loan. A template is available in the Test folder (underneath the link to our test. You can fill in the Word file template and attach below,
Directions: Solve the following problems. A loan of P40,000is to be amortized by equal payments at the end of each for 18 months. quarter I interest is 10% compounded quarterly, find the periodic payment and construct an amortization schedule.
Prepare the first row of a loan amortization schedule based on the following information. The loan amount is for $24,323.00 with an annual interest rate of 15.77%. The loan will be repaid over 7.0 years with monthly payments. Find Loan payment: Interest portion: Principle portion: Loan balance after first monthly payment:
Aa.63.
PLEASE DO THE FOLLOWING ON AN EXCEL SPREADSHEET: Consider a loan of $1,000,000 with the nominal annual interest rate of 10% compounded annually that must be paid off in 15 years. The loan fees include 2.0 points plus originating fee of $1,000. Calculate the loan monthly installments and APR of the loan.
A 4000 ghana cedis loan is to be amortized with eight quartely payments over 2 years. If the interest is at J4 = 10% a. Find the quartely payment b. Construct an amortization schedule for this loan payment. Note: Compute without using microsoft excel for the amortization schedule
a demand loan of $3000 is repaid by payments of $1500 after two years, $1500 after four years, and a final payment after six years. interest is 7% compounded quarterly for the first two years, 8% compounded annually for the next two years, and 8% compounded quarterly thereafter. what is the size of the final payment?