A debt can be repaid by payments of $1000.00 today, and $3000.00 in two years. What single payment would settle the debt three years from now if money is worth 16% p.a. compounded semi-annually? PV₁ =$ IY= CY= FV₁ = $ FV = PV(1 + i)" up to 4 decimal places Single payment E= FV₁ + FV₂ = S PV₂ = $ п2 = FV₂ = $ up to 2 decimal places up to 2 decimal places

Q: A loan of £10,000 is repaid by annual payments of £1,300 each at the end of the year. How long does…

A: NPER or the number of periods is the calculation of the total periods of payment considering a…

Q: A debt can be repaid by payments of $3125.00 today, $2770.00 in two and half years and $4600.00 in…

A: To Find: Single Payment to settle debt four years from now

Q: $100 is lent for 5 years amd repaid in a single payment at the end of the 5 years. Calculate the…

A: We are given Present value=100 Rate=7% number of years=5 We have to calculate future worth of that…

Q: What equal payments in 3 years and 5 years would replace payments of $47,500 and $72,500 in 6 years…

A: The concept of time value of money will be used here. As per this concept money has the power to…

Q: Ordinary Annuity  2. A P35,000 debt is to be paid off in eight equal yearly payments, each…

A: Loan = 35,000 Number of Installments (N) = 8 Nominal Interest Rate = 10% Compounded Quarterly Number…

Q: A mortgage of £180,000 is repaid over 20 years by equal monthly payments in arrears. The interest…

A: As per the given information: Mortgage amount = £180,000Repayment period = 20 years by equal monthly…

Q: A payment of $11,335 is due in 3 year, $18,000 is due in 4 years, and $8,850 is due in 6 years. What…

A: The present value of a future amount is calculated using the following formula,

Q: hat single payment now is equivalent to a uniform series of $1000 per year for 20 years, beginning 6…

A: The present value of annuity considering the interest rate and period would give the single payment…

Q: A loan of $4100 is due in 7 years. If money is worth 4.3% compounded annually, find the equivalent…

A: Loan amount = $4,100Rate = 4.3%Loan period = 7 years

Q: Debt payments of $800.00 due now and $1400.00 due in five months are to be repaid by a payment of…

A: Present value refers to the discounted value of the cash flow at the interest rate for the given…

Q: H3. A loan of $18430 is to be repaid at 4% effective by payments of $1500 at the end of each year…

A: Loans are paid by annual payment that carry the payment of interest and principal amount also.

Q: A demand loan of $3000.00 is repaid by payments of $1500.00 after two years, $1500.00 after four…

A: Here, Loan Amount $ 3,000.00First Payment in 2 years $ 1,500.00Second payment after 4 years $…

Q: A loan of $3100 is due in 6 years. If money is worth 3.2% compounded annually, find the equivalent…

A: Amount of Loan is $3100The worth of money is 3.2% compounded annuallyTo Find:Equivalent loan payment

Q: Suppose you borrowed $45,000 at a rate of 8.4% and must repay it in 5 equal installments at the end…

A: First we will calculate the amount of installment with the help of following formula Installment =…

Q: A payment of $11,050 is due in 1 year, $19,500 is due in 5 years, and $8,550 is due in 6 years. What…

A: The concept of TVM refers to the interest-earning capacity of the money which makes money earned…

Q: Can you please show me how we get the number, 1.242381   In this sum , A = $ 2,500 P = ? Time =…

A: Below is the extended calculation for better understanding: A=P×…

Q: You already have $54,700 in your savings account that earns 3.50% compounded annually. You will…

A: The concept of the time value of money states that the same amount of money has more value today…

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.