8. A demand loan of $10000 is repaid by payments of $5000 in one year, $6000 in four years, and a final payment in six years. Interest on the loan is 10% compounded quarterly during the first year, 8% compounded semiannually for the next three years, and 7.5% compounded annually for the remaining years. Determine the final payment.

8. A demand loan of $10000 is repaid by payments of $5000 in one year, $6000 in four years, and a final payment in six years. Interest on the loan is 10% compounded quarterly during the first year, 8% compounded semiannually for the next three years, and 7.5% compounded annually for the remaining years. Determine the final payment.

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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Complete the following from the first three lines of an amortization schedule for the following loan:You borrow $ 210000 with an annual interest rate of 6.25% over 20 years Starting principal = $ 210000New balance after month 1 payment = New balance after month 2 payment = New balance after month 3 payment =
Olfert Inc. is repaying a loan of $52500.00 by making payments of $4700.00 at the end of every six months. If interest is 7.5% compounded semi-annually, the outstanding balance after the first, second, third payment will be respectively: O 49268.75, 47565.08 and 43995.14 O 49768.75, 45015.08 and 42105.48 49768.75, 46935.08 and 43995.14 O48425.12, 45238.21 and 42355.23 Mrs. Robinson made
A loan of $ 10,000 is amortized by equal annual payments for 30 years at an effective annual interest rate of 10 % Determine the year in which the interest portion of the payment is most nearly equal to one-half of the payment. The year that the interest portion of payment is most nearly equal to one-half of the payment= ?
A loan is repayable by a decreasing annuity payable annually in arrears for 20 years. The repayment at the end of the first year is $6 000 and subsequent repayments reduce by $200 each year. The repayments were calculated using a rate of interest of 9% per annum effective.Calculate the original amount of the loan.
Complete the following from the first three lines of an amortization schedule for the following loan:You borrow $ 330000 with an annual interest rate of 6% over 20 years Starting principal = $ 330000New balance after month 1 payment = New balance after month 2 payment = New balance after month 3 payment =
Create the following payments for a loan of 240,000 that must be repaid in three years at a 12% annual interest rate: Plan 1: Pay principal and interest in one payment at the end of three years Plan 2: Pay interest at end of each year and principal at the end of three years Plan 3: At the end of each year, pay 80,000 principal plus interest due Plan 4: Pay in three equal end-of-year payments Show the payment plans by supplying the values in the table below. Solution: Year Amount owed at beginning of year Interest accrued for Total money owed at end of year Amount of principal paid Total end-of- year payment year Plan 1: Pay principal and interest in one payment at the end of three years 1 2 3 Plan 2: Pay interest at end of each year and principal at the end of three years 1 2 3 Plan 3: At the end of each year, pay P 80,000 principal plus interest due 1 2 3 Plan 4: Pay in three equal end-of-year payments 1 2 3
a loan of 25,000 has the following terms. the nominal interest rate is 8% compounded monthly; there will be n payments of 489.9 each starting at the end of the first month; and there will be one larger payment at the end of n+1 months. immediately after the 18th payment, the borrower refinances the loan with a new 24 month loan with a nominal 4.5% rate compounded monthly. the first payment is due one month after refinancing. what is the new monthly payment?
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?
A loan of $ 7000 is to be repaid in 46 equal monthly installments with the first one paid seven months after the loan is made. The nominal annual interest rate is 8 % compounded quarterly. Determine the amount of the monthly payment
Prepare an amortization schedule for a five year loan of $58,500. The interest rate is 6% per year and the loan cost for equal annual payments. How much interest is paid in the third year? how much total interest is paid over the life of the loan? Loan amount $ Interest rate Loan term Output area: 58,500 6% 5 Loan payment $13,887.69 Year Beginning balance 1 $ 58,500.00 Total payment Interest paid Principal paid Ending balance $ 13,887.69 $ 3,510.00 $ 10,377.69 $ 48,122.31 2 3 4 5 Total interest paid over life of loan
Complete the following from the first three lines of an amortization schedule for the following loan:You borrow $ 150000 with an annual interest rate of 8.75% over 15 years Starting principal = $ 150000New balance after month 1 payment = New balance after month 2 payment = New balance after month 3 payment =

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