A demand loan of $5000.00 is repaid by payments of $2500.00 after two years, $2500.00 after four years, and a final payment after six years. Interest is 9% compounded quarterly for the first two years, 10% compounded monthly for the next two years, and 10% 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 demand loan of $5000.00 is repaid by payments of $2500.00 after two years, $2500.00 after four years, and a final payment after six years. Interest is 9% compounded quarterly for the first two years, 10% compounded monthly for the next two years, and 10% 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.)

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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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.)
Find the effective interest rate for a loan for four years compounded semiannually at an annual rate of 5%. Click here to view page 1 of the future value table. Click here to view page 2 of the future value table. The effective interest rate is %. (Round to two decimal places as needed.)
A demand loan for $10,088.75 with interest at 7.1% compounded annually is repaid after 4 years, 8 months. What is the amount of interest paid? The amount of interest is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
Find the periodic payment R required to amortize a loan of P dollars over t years with interest charged at the rate of r%/year compounded m times a year. (Round your answer to the nearest cent.) P = 40,000, r = 5, t = 19, m = 4
How long will it take to pay off a loan of $47,000 at an annual rate of 8 percent compounded monthly if you make monthly payments of $650? Use five decimal places for the monthly percentage rate in your calculations. The number of years it takes to pay off the loan is enter your response here years. (Round to one decimal place.)
The interest rate is 10%. There is a 2-year loan with two specific payments: $110 to be paid next year and $200.00 to be paid in two years. The current market value of this loan is $_______ (round to the nearest integer)
A loan of $2766 borrowed today is to be repaid in three equal installments due in two years, three years, and six years, respectively. What is the size of the equal installments if money is worth 7.7% compounded annually? The payments are each $ ☐ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
1) A 20-year loan of $1,100 at an effective annual interest rate of 7% is repaid with payments at the end of each year. Each of the first ten payments equals 150% of the amount of interest due. Immediately after the tenth payment, you take out a 10 year loan with payments $100 at the end of each year and effective annual interest rate of i and use this loan to pay off your original loan. Find i.
A $35,000 loan at 4% compounded quarterly is to be repaid with six equal quarterly payments. The first payment is one year after the loan. Calculate the amount of each payment. For full marks your answer(s) should be rounded to the nearest cent. Payment $ 0.00
Calculate the interest payments each year for a three-year loan of $30000 with 6% annual interest rate under the following conditions: the loan requires equal annual payments; the loan requires equal annual principal reduction..
Find the payment necessary to amortize a 12% loan of $2000 compounded quarterly, with 18 quarterly payments. The payment size is $ (Round to the nearest cent.)
Find the monthly payment and estimate the remaining balance. Assume interest is on the unpaid balance. 4-year computer loan for $3106 at 5.7%; remaining balance after 2 years. The monthly payment is $. (Round to the nearest cent as needed.) The remaining balance is $. (Round to the nearest dollar as needed.)

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