Q 7 please 6. At a compound interest rate of 10% per year, $10,000 one year ago is now equivalent to-a) $9091b) $12,100c) $11,000d) $82647. How many months will it take to pay off a $525 loan, with monthly payments of $15 atthe end of each month. if the interest rate is 18%, compounded quarterly?a) 50b) 45c) 48d) None of the mentioned8. What is the payback period of a project that has an initial investment of $100,000 andgenerates annual cash inflows of $25,000 for 10 years, with a discount rate of 12%?a) 3 yearsb) 4 yearsd) 6 yearsc) 5 years9. The U.S. Border Patrol is considering the purchase of a new helicopter for aerialsurveillance of the New Mexico-Texas border with Mexico. A similar helicopter waspurchased 4 years ago at a cost of $140,000. At an interest rate of 7% per year, what wouldbe the equivalent value today of that $140,000 expenditure?a) $183,512b) $283,512c) $483,51210. Evaluate the compound interest on $10101 for 3 years at the rate of 9% per annumcompounded annually.a) 2980b) 10101d) $383,512c) 30000d) 33333Question Two:1. The net present value is the difference between the present value of the cash inflows andthe present value of the cash outflows.2. The present worth of an investment that will grow to $1000 in 10 years at an interest rateof 5% per year, compounded annually is $605.3. Time Value of money is the most important concept in Engineering Economics.4. Individuals who come up with a new idea for a good or service, then they make it areality are called entrepreneur.5. If you are calculating the simple interest and you are given the time in months. You canfind the time in years by dividing the months by 12.

Loan: It refers to the amount borrowed and given by the lender for the borrower to purchase assets…

Answered: 7. How many months will it take to pay…

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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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?
Suppose that $10,000 is borrowed now at 15% interest per year. A partial repayment of $3,000 is made four years from now. The amount that will remain to be paid then is most nearly: A. $7,000 B. $8,050 C. $8,500 D. $13,000 E. $14,490
A loan of P50,000 is to be amortized by paying quarterly in 1 year. If money is worth 10% compounded quarterly, how much is the monthly installment? a. P13,648.90 b. P11,589.57 c. P12.765.50 d. P13,290.89
(a) How many years will it take for $7500 to accumulate to $9517.39 at 3% compounded semi-annually? (b) Over what period of time will money triple at 9% compounded quarterly? (c) How many years will it take for a loan of $10,000 to amount to $13,684 at 10.5% compounded monthly? (a) It will take 8 years. (Round the final answer to two decimal places as needed. Round all intermediate values to six decimal places as needed.) (b) The money will triple in quarters. (Round the final answer to two decimal places as needed. Round all intermediate values to six decimal places as needed.)
7. You have taken out a loan of $32,000 to buy a new Saturn. The loan will be paid off in monthly instalments starting in one month over the next 4 years (48 payments). The interest rate on the loan is a stated rate of 8.25% per year. The bank doesn’t tell you, but it is compounded quarterly. 7a) The monthly loan payments are _____ 7b) The interest charged in the first month is _____ 7c) The first payment reduces the principal outstanding by _____ Pls show formula used. Final dollar answers should be rounded to two decimal places. Interest rate answers should be rounded to 6 decimal places if expressed as a decimal or 4 decimal places if expressed as a percent. Use timeline if necessary. No excel .Thanks!
Consider a loan of 800,000 which is to be amortized by 60 monthly payments. The interest rate is 12% converted monthly. 1. How much is the outstanding balance after the 36th payment? 2. How much of the 37th payment goes to pay the interest the principal?
6) What is the future value (FV) of $20,000 in four years, assuming the interest rate is 4% per year? A) $15,208.16 B) $19,887.59 C) $23,397.17 D) $25,736.89
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In order to solve this question, would I use the compounded monthly formula and then subtract the balance between the difference? 36. If $50,000 is borrowed for a home mortgage, to be repaid at 10% interest over 30 years, what is the remaining loan balance after 20 years? Assume monthly payments are made. a. $50,000b. $42,957 c. $32,590 D. $33,203e. $20,651
What is the size of eight equal annual payments to repay a loan of $1,000? The first payment is due one year after receiving the loan? The interest rate is 10% per year. Hint (at_Page 21) The constant amount or payment (PMT) per interest period is calculated using the formula: PV(RATE(1+ RATE)NPER (1+ RATE)NPER – 1 PMT = RATE = effective interest rate per interest period NPER = number of compounding (interest) periods %3D PV = present value or principle or initial amount at the start
You have a student loan of 40,0005 that you want to repay in 10 years. Interest rates are at per year for every maturity. Assuming annual payments with annual compounding, how much should you pay each year 040115 b. 5,4355 3,5555 Od 5.2265 6,5105 Of 4,0005 Og 2.4025 Oh. 5,8625

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7. How many months will it take to pay off a $525 loan, with monthly payments of $15 at the end of each month. if the interest rate is 18%, compounded quarterly? a) 50 b) 45 c) 48 d) None of the mentioned