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?
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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?
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- You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuityPrepare an amortization schedule for a three-year loan of $111,000. The interest rate is 10 percent per year, and the loan calls for equal annual payments. How much total interest is paid over the life of the loan?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.
- A loan of 80,000 is repaid using the amortization method by annual payments at the end of each year for ten years. The first payment, one year from today is X. Each subsequent payment is 1,600 higher. The annual effective of the loan is 5%. Find the first payment and the interest portion of the first payment.Prepare an amortization schedule for a three-year loan of $57,000. The interest rate is 8 percent per year, and the loan calls for equal annual payments. How much interest is paid in the third year? How much total interest is paid over the life of the loan?A sum of $20,000 is borrowed at an interest rate of 8 percent on the unpaid balance compounded semiannually, The loan is to be paid back with 10 equal payments in 20 years The payments are to bo made every 2 years, starting at the end of the second year. What is the amount of each biennial payment?
- Prepare an amortization schedule for a five-year loan of $71,500. The interest rate is 7 percent per year, and the loan calls for equal annual payments. How much interest is paid in the third year?A loan of $10200 is to be amortized with quarterly payments over five years. The interest on the loan is 7.5% per year, paid on the unpaid balance. What is the payment to pay off the loan?Prepare an amortization schedule for a three year loan of $57,000. The interest rate is 8% per year, and the loan calls for equal annual payments. How much interest is paid in the third year? How much total interest is paid over the life of the loan?
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