A demand loan of $3000.00 is repaid by payments of $1500.00 after two years, $1500.00 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 demand loan of $3000.00 is repaid by payments of $1500.00 after two years, $1500.00 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?

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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Round to the nearest cent as neccessary
A loan requires that payments of $580 be made at the end of each month for a total of 180 consecutive months, beginning one month from today. If the annual interest rate is 3.00%, what is the equivalent present value of the loan?
A loan of $ 1,000 is being paid with annuities of $ 80 at an interest rate of 5. One year after the loan is actually paid, if after 7 payments it is agreed that the rest of the debt will be covered with two One-time equal payments at the end of year 9 and 11. How much are these payments so that the debt is paid off entirely?
Consider a loan of $5.2 million that is paid quarterly over a period of 15 years. Calculate the dollar amount of interest and loan principal repaid corresponding to each payment if the interest rate is 11% per year, compounded quarterly. What is the 5th Quarter Interest and also the 5th Quarter Principal Repayment respectively.
A loan of 2000 is taken now and is agreed to be repaid as follows: annual payments of 200 each for as long as possible and a final payment of 200+ X where X < 200; the first payment is due 10 years from now. The effective annual rate is 4%. a) How many payments of 200 are made? b) What is the amount of the final payment?
Consider a loan of 800,000 which is to be amortized by 60 monthly payments. The interest rate is 12% converted monthly. Find the monthly payment.
a demand loan of 7000$is repaid by payments of 3500$ after two years, 3500$ after four years and a funal payment after seven years. interfest rate is 9% compunded quarterly for the first two years, 10% compoiunded annuannly for the next two years, and 10% compounded mointhly thereafter. what is the size of the final payment?
A demand loan of $6000.00 is repaid by payments of $2500.00 after two years, $2500.00 after four years, and a final payment after eight years. Interest is 7% compounded monthly for the first two years, 8% compounded semi-annually for the next two years, and 8% compounded annually thereafter. What is the size of the final payment? The final payment is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
A $20,000 loan obtained today is to be repaid in equal instalments over the next six years, starting at the end of this year. If the annual interest rate is 10%, compounded annually, how much is the payment for each year?
What is the monthly payment to repay a 10 year loan of $200,000 at a nominal rate of 15% per year if the interest is compounded quarterly? Assume interperiod compounding.
A loan of $1500 is to be repaid by annual payments of $250 to commence at the end of the fifth year and to continue thereafter for as long as necessary. Find the amount of the final payment, if the final payment is to be larger than the regular payments. Assume i = 5%. Round your answer to two decimal places.
A loan of 34000 is made at 5% interest, compounded annually. After how many years will the amount due reach 63000 or more?

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