A loan is to be repaid over 30 years, with month-end repayments of 8,000. If the interes rate is 3.0% p.a. compounded monthly. Calculate the loan outstanding balance at the end of 10 years. Correct your answer to the

A loan is to be repaid over 30 years, with month-end repayments of 8,000. If the interes rate is 3.0% p.a. compounded monthly. Calculate the loan outstanding balance at the end of 10 years. Correct your answer to the

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 200,000 dollar loan is taken out. Interest is 6 percent nominal, converted monthly. The loan is to be paid off by monthly payments, at the end of each month. a. If the loan is to be paid off after 15 years, compute:1) the monthly payment2) the remaining balance after 5 and 10 years of payments 3) the total interest paid throughout the life of the loan. b. If the loan is to be paid off after 30 years, compute:1) the monthly payment2) the remaining balance after 10 and 20 years of payments 3) the total interest paid throughout the life of the loan.
An interest-only ARM is made for $218,000 for 30 years. The start rate is 5 percent and the borrower will make monthly interest-only payments for three years. Payments thereafter must be sufficient to fully amortize the loan at maturity. Required: a. If the borrower makes interest-only payments for three years, what will the payments be? b. Assume that at the end of year 3, the reset rate is 6 percent. The borrower must now make payments so as to fully amortize the loan. What will the payments be?
A $30,000 loan with an interest rate of 9% compounded monthly was repaid, after a period of deferral, by monthly payments of $450 for 10 years. What was the time interval between the date of the loan and the first payment? (round up to the nearest month; i.e. 14.34 will round to 15)
Complete the following from the first three lines of an amortization schedule for the following loan: You borrow $ 255000 with an annual interest rate of 9% over 20 years Starting principal = $ 255000 New balance after month 1 payment = New balance after month 2 payment New balance after month 3 payment =
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.
Calculate the present value of a loan that could be cleared by payments of $3,350 at the end of every 6 months for 7 years if money earns 5.73% compounded semi-annually.
Consider a student loan of $25,000 at a fixed APR of 12% for 20 years. a. Calculate the monthly payment. b. Determine the total amount paid over the term of the loan. c. Of the total amount paid, what percentage is paid toward the principal and what percentage is paid for interest. a. The monthly payment is $ (Do not round until the final answer. Then round to the nearest cent as needed.)
A $14,000 loan is to be amortized for 10 years with quarterly payments of $467.98. If the interest rate is 6%, compounded quarterly, what is the unpaid balance immediately after the sixth payment? (Round your answer to the nearest cent.)
A loan is repaid with payments of $2560 made at the end of each month for 13 years. If interest on the loan is 14.5%, compounded semi-annually, what is the initial value of the loan? Enter to the nearest cent (two decimals). Do not use $ signs or commas. Answer: NEXT PAGE
Establish loan amortization schedules for 3-year loan of $20,000 (initial loan) with equal payments at the end of each year. The interest rate is 5 percent per year
A loan is to be repaid by an annuity payable monthly in arrears over a 5-year period. The annuity starts at a rate of £200 per month and increases each month by £5. Repayments are calculated using a rate of interest of 8% per annum effective. (i) Calculate the amount of the original loan to the nearest £. (ii) (iii) Calculate the capital outstanding at the end of the first year (after the payment due has been made) to the nearest £0.01. Hence, or otherwise, calculate the capital and interest components of the 13th and 14th payments.
A $24,100 loan is to be settled by making payments of $6,980 at the end of every 3 months. The interest is 5.79% compounded monthly. a) Find the number of payments in the term

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