A loan is being repaid by 15 annual instllments of 1000 each. Interest is at an effec- ive annual rate of 5%. Immediately after the fifth installment is paid, the loan is renegotiated. The revised amortization schedule calls for a sixth installment of 800, a seventh installment of 300 + K, with each subsequent installment increasing by K over the previous payment. The beriod of the loan is not changed. Determine the revised amount of the last installment.

A loan is being repaid by 15 annual instllments of 1000 each. Interest is at an effec- ive annual rate of 5%. Immediately after the fifth installment is paid, the loan is renegotiated. The revised amortization schedule calls for a sixth installment of 800, a seventh installment of 300 + K, with each subsequent installment increasing by K over the previous payment. The beriod of the loan is not changed. Determine the revised amount of the last installment.

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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(1) A 10-year loan of 30,000 may be repaid under the following two methods: (a) amortization method with equal annual payments at an annual effective interest rate of 7.5%. (b) sinking fund method in which the lender receives an annual effective interest rate of 9% and the sinking fund earns an annual effective interest rate of j. Both methods require a payment of X to be made at the end of each year for 10-years. Calculate j. (2) A loan of X is repaid with level annual payments at the end of each year for 15 years. You are given: (a) The interest paid in the 1st year is 1000; and (b) the principal repaid in the 10th year is 563. Calculate X.
4. Establish loan amortization schedules for 3-ycar loan of $20,000 (initial loan) with cqual payments at the end of cach year. The interest rate is 5 percent per year. NOTE: PLEASE SHOW HOW YOU COMPUTE EACH OF THE ITEMS.
n.c.
An $80,000 loan is amortized by payments of $1950 at the end of every quarter at a rate of 9% compounded quarterly. 1. Construct a partial amortization schedule showing the last 2 payments. 2. Determine the total amount paid to settle the loan. 3. Determine the total principal repaid. 4. Determine the total amount of interest paid.
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An amortized loan: repays both the principal and the interest in one lump sum at the end of the loan term. requires the principal amount to be repaid in even increments over the life of the loan. requires that all payments be equal in amount and include both principal and interest. requires that all interest be repaid on a monthly basis while the principal is repaid at the end of the loan term. may have equal or increasing amounts applied to the principal from each loan payment.
A loan of amount $15560.21 is repaid in 15 annual payments beginning 1 year after the loan is made. The first 6 payments are $1000 each, and the final 9 payments are each $2000. Interest is at an effective annual rate of 5.1%. What is the amount of the principal repayment in the 6th payment?
If the interest rate is 13% compunded semi-annually made on the account, and the obligations are given below: Deposit of P13,521 at the end of 3 and a half years. Withdrawal of P20,812 at the end of 5 years. Semi-annual deposit of a perpetuity of P1,200 starting at the end of 6 and a half years. Determine the following: a.) Present value of all the obligations made on the account. b.) Additional amount of withdrawal at the end of 5 years to balance the cash flows. NOTE: DO NOT USE EXCEL
The following loan is fully amortizing. The loan is for $12,000 at 5% interest to be repaid over three (3) years. Amortize this loan on a monthly basis. Calculate the interest portion of the fourth (4th) payment considering that an additional payment of $2,000 was made with the second payment.
A student loan is offered under the following conditions: credit of 30, 000 euros at 3% over a period of 6 years contracted on June 1, 2020; no repayment or interest payments for 2 years; The re-payment is provided in 4 constant annual instalments paid on June 1st for the following 4 years. a) Calculate the constant annuities of this credit. b) Draw the amortization table Years (payment in June) Principal repaid Interest paid Annual payments outstanding capital
Construct the amortization schedule for a $7000 debt that is to be amortized in 5 equal quarterly payments at 2.5% interest per quarter on the unpaid balance. How much interest must be paid?
A loan is to be amortized by equal payments of P500.00 each at the end of every six months for ten years. Interest is based on 7% compounded semiannually. What is the outstanding debt after eight years? Select one: a. P1,657.88 O b. No answer c. P2,034.29 d. P1,836.54 e. P1,976.87

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