A bank client has a debt of 12,425 pesos including interest to be paid in 12 months. The debtor receives unexpected sales flows and decides to advance the payment of his debt at this time for 6,649 pesos and negotiates to pay the rest in two years. What is the payment you will have to make to pay off your debt within 48 months? The conditions of the negotiation are: simple annual interest rate of 12.34% and that the focal date of 48 months is considered for resolution. options: 6603.78 7093.78 6595.78 7131.78

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Q: Your company plans to borrow $5 million for 12 months, and your banker gives you a stated rate of 8…

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Q: A loan of RM200,000, paid annually, is made for a term of 30 years at an effective interest rate of…

A: The objective of the question is to develop a sales illustration of a loan scheme. The loan scheme…

Q: A person has made an arrangement to borrow $1,000 now and another $1,000 two years hence. The entire…

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A: The amount of interest paid is calculated as shown below.

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Q: bank is offering aloan of $25,000 with a nominal interest rate of 18% compoundedmonthly, payable in…

A: Loan amount (PV) = $ 25000 Annual interest rate = 18% Monthly interest rate (r) = 18%/12 = 1.50%…

Q: Jacques has just been notified that the combined principal and interest on an amount he borrowed 19…

A: Loans carry the interest rate so value of loans increases with time and interest.

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Q: You have $1000 in an account earning 4% APR compounded daily.  At the same time, you are to pay a…

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Q: person owes a credit institution $20,000 that must be paid in 3 years with interest at 12% effective…

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Q: The final payment the bank will require you to make is ​$

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Q: You plan to take out a 9 month loan of $12mm in 6 months. The following schedule reports interest…

A: Forward Interest rate for 9 month loan in 6 months = [[(1+r15)/(1+r6)] - 1]*(12/n) r15 =  5 *15/12…

Q: Consider a five-year floating rate loan with principal of $10 million and quarterly payments based…

A: Given information: 5 year floating rate loan of $10 million

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Q: An interest-only ARM is made for $218,000 for 30 years. The start rate is 5 percent and the borrower…

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Q: A company borrows $126,500 from a bank. The interest rate on the loan is 10 percent compounded…

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A: Loan Amount  $                   3,00,000.00 Time Period 30 Years Interest Rate 7.20%

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.