I need this question completed in 10 minutes with full handwritten working out A$1000 loan is being repaid in annual Installments of $100 at the end of every year.Assume 17%.a) If the last payment will be smaller than the normal payments, calculate the time and amountof the final payment. (b)If the last payment will be slightly larger than the normal payments (but smaller than twosuch payments), calculate the time and amount of the final payment. C

A loan refers to a contract between two parties where money is forwarded in exchange for a promise…

Answered: A $1000 loan is being repaid in annual…

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?
A loan of $10, 000 today is to be repaid by annual payments of $800 to commence one year from now and continue thereafter for as long as necessary. The effective rate of interest is 6%. Compute the amount of the final payment if it is to be larger than the regular payments.
Consider a loan of $98,000 at 7% compounded annually, with 12 annual payments. Find the following. (a) the payment necessary to amortize the loan (b) the total payments and the total amount of interest paid based on the calculated annual payments (c) the total payments and total amount of interest paid based upon an amortization table. ... (a) The annual payment needed to amortize this loan is $ (Round to the nearest cent as needed.) (b) The total amount of the payments is $ (Round to the nearest cent as needed.) The total amount of interest paid is $ (Round to the nearest cent as needed.) (c) The total payment for this loan from the amortization table is $ (Round to the nearest cent as needed.) The total interest from the amortization table is $ (Round to the nearest cent as needed.)
A loan of $11,300 is to be amortized with quarterly payments over 6 years. If the interest on the loan is 16% per year, paid on the unpaid balance, answer the following questions. a. What is the interest rate charged each quarter on the unpaid balance? b. How many payments are made to repay the loan? c. What payment is required quarterly to amortize the loan? a. The interest rate each quarter is %. b. There will need to be payments made. c. The quarterly payment needs to be S (Round to the nearest cent as needed.)
solve it completely please. Monthly payments are to be made against an $850,000 loan at 7.25% compounded annually with a 15-year amortization. What is the size of the monthly payment? Calculate the principal portion of the 50th payment. Calculate the interest portion of the 100th payment. Calculate how much the principal will be reduced in the third year. Calculate the total interest paid in the second year.
a. Set up an amortization schedule for a GHȼ 25,000 loan to be repaid in equal installments at the end of each of the next 5 years. The interest rate is 10%. b. How large must each annual payment be if the loan is for GHȼ 50,000? Assume that the interest rate remains at 10% and that the loan is still paid off over 5 years. c. How large must each payment be if the loan is for GHȼ 50,000, the interest rate is 10%, and the loan is paid off in equal installments at the end of each of the next 10 years? This loan is for the same amount as the loan in part b, but the payments are spread out over twice as many periods. Why are these payments not half as large as the payments on the loan in part b?
You borrow a GPM of $120,000 with annual payments and 30-year term. The interest rate is 10%. The payment rises by 2% each year. please show how to solve using excel to answer a. b. and c. below a. What are the annual payments for years 1 to 30? b. What is remaining balance at the end of each year? c. What are the interest payment and principal payment for years 1 to 30?
An ARM for $101,800 is made at a time when the expected start rate is 5 percent. The loan will be made with a teaser rate of 2 percent for the first year, after which the rate will be reset. The loan is fully amortizing, has a maturity of 25 years, and payments will be made monthly. Required: a. What will be the payments during the first year? b. Assuming that the reset rate is 6 percent at the beginning of year (BOY) 2, what will the payments be? c. By what percentage will the monthly payments increase? d. If the reset date is three years after loan origination and the reset rate is 6 percent, what will the loan payments be beginning in year 4 through year 25?
Consider a loan of 1,000,000 which is to be amortized by 60 monthly payments. The interest rate is 10% converted monthly. How much of the 47th payment goes to pay the interest? How much of the 47th payment goes to pay the principal?
An ARM for $100,000 is made at a time when the expected start rate is 5 percent. The loan will be made with a teaser rate of 2 percent for the first year, after which the rate will be reset. The loan is fully amortizing, has a maturity of 25 years, and payments will be made monthly. Required:a. What will be the payments during the first year?b. Assuming that the reset rate is 6 percent at the beginning of year (BOY) 2, what will the payments be?c. By what percentage will the monthly payments increase?d. If the reset date is three years after loan origination and the reset rate is 6 percent, what will the loan payments be beginning in year 4 through year 25
1. Let's assume that a loan of $100,000 with an annual interest rate of 6% over 30 years pays monthly payments of $500. a. Calculate the accumulation rate b. Calculate the payment rate . c. Answer : How will the balance of the principal be at the end of the loan in relation to the original amount of the loan? Less, equal or greater? Provide calculations.
You just took a $90,000, 10 years loan. The annual percentage rate (APR) is 8%. You are obligated to pay a flat payment at the end of each QUARTER. (a) Make a loan amortization table; (b) Plot a figure to show the flat payment, payment to interest, and payment in each quarter.

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