A business borrowed $50,000 at 8% compounded monthly. If the loan is to be paid in equal quarterly payments over seven years and the first payment is due three months after the date of the loan, calculate the size of the quarterly payments.

Q: A loan is being repaid with payments of $1,500 at the end of each quarter. If the loan will be…

A: Payment Amount (PMT) = $1500Loan duration (Number of years) = 5 yearsNumber of compounding period…

Q: Find the effective interest rate for a $1,500 loan for four years compounded semiannually at an…

A: Calculation of Effective Interest Rate:The effective interest rate is 8.16%.Excel Spreadsheet:

Q: Sam's borrows $250.000 payable over five years, with an interest rate of 10% per year on the unpaid…

A: PV=Loan amount = $250,000r=annual rate = 10%n=years = 5C= annual payment…

Q: Suppose that a company borrows 20,000 for 1 year at a stated rate of interest of 9 percent. What is…

A: Annual percentage rate (APR) if interest is paid to the lender annually = (1 + Stated rate / Number…

Q: You deposit 2,000 in an account that pays 7% interest compounded semiannually.after two years the…

A: The concept of time value of money will be used here. Money deposited today gets computed and hence…

Q: BALR Corp.borrows $600,000 to be paid off in three years. The loan payments are semiannual with the…

A: Loan payments are semiannual. Thus, the semiannual interest rate should be considered i.e. 6%/2=3%.…

Q: Compute the compound amount and the interest on a loan of $10,500 compounded annually for four years…

A: The computation of compound amount is as follows:Hence, the compound amount of loan is $16910.355.

Q: A equal principal payment loan of $3000 is amortized by means of 12 quarterly payments, beggining…

A: Loan Amount = $3,000Total Number of Payments = 12Loan Principal Payment = $3,000 ÷ 12 = $250Interest…

Q: A bank makes a loan of $10,000. The loan will be paid back after 10 years with yearly payments of…

A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…

Q: A sum of $80,000 is to be repaid over a 10-year period through equal installments made at the end of…

A: Interest, in finance and economics, is payment from a borrower or deposit-taking financial…

Q: A borrower had a loan of $7800 at 5.6% compounded semiannually, with 20 semiannual payments. Suppose…

A: We have; The loan amount is $7800 The interest rate is 5.6% compounded semiannually Total m=number…

Q: You have taken a loan of $76,000.00 for 22 years at 5.2% compounded quarterly  1st-3rd month…

A: Payment refers to the periodic payments which are made in lieu of repayment of a loan. Payment…

Q: -A debt requires payments of $750 at the end of every three months for 8 years. Calculate the…

A: Interest charged on Debt: Interest is applied to practically all debts, and additional costs are…

Q: A debt of $40 000 is to be repaid in installments due at the end of each month for seven years. If…

A: Payments refer to the regular fixed cash flow made against the debt amount in order to repay it over…

Q: A loan of $ 8500 is to be repaid in 39 equal monthly installments with the first one paid seven…

A: Here borrowers understand how much they need to budget each month to repay their loan within a…

Q: How much will be owed at the end of 5 years?

A: Time value of money means the amount of received in the present period will have more value than…

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

A: Loans are paid by periodic payments and these are fixed payment that carry the payment of interest…

Q: A loan, amortized over 15 years, is repaid by making payments of $1,900 at the end of every month.…

A: Principal payment refers to the amount of loan that is paid back by the borrower. The loan amount is…

Q: 7500 was borrowed for a four-year term at 9% compounded quarterly. The te discounting the loan's…

A: Notes are issued based on the stated interest rate and they can be discounted back at lower interest…

Q: A business received a for year $2,000,000 loan at an interest rate of 7% per year. The principal is…

A: NPV means PV of amount which is receive or pay in future. NPV can be find by using discounting rate…

Q: A loan of $401,000 at 5.02% compounded quarterly was to be settled with month-end payments of…

A: Future worth is computed by multiplying the existing value with a given interest rate.

Q: The owner of the Pink Flamingo Motel borrowed $19 500.00 at 8.11% compounded semi-annually and…

A: Borrowed Loan = $19500Quarterly Payment =$1110Interest Rate = 8.11%Term of periodic payment =…

Q: A total of $50,000 is borrowed and repaid with 60 monthly payments, with the first payment occurring…

A: monthly payment formula: monthly payment=p×rm1-1+rm-m×n where, r=rate p=principal m=frequency of…