A loan of £10,800 is to be repaid over a 11-year contract by three initial payments of £2,000, £2,000 and £3,000 at the end of years 1, 7 and 10, respectively. Hence, find a final amount £X at the end of year 11 that needs to be paid to

Q: a. The OP at the end of 3 years. b. OP after the 45th payment. c. Estimate how many payments…

A: Outstanding payment is the balance amount of debt, left after a certain period. The outstanding…

Q: A Forward Rate Agreement contains an agreed interest rate of 5.75% on a 6-month loan. If settled at…

A: Forward rate agreements are used by entities to hedge against the interest rate risk. It is an…

Q: A debt can be repaid by payments of $3125.00 today, $2770.00 in two and half years and $4600.00 in…

A: To Find: Single Payment to settle debt four years from now

Q: the effective interest rate if the actual interest rate 3 months from now is 8%

A: Effective Interest Rate: Effective interest rate is the real return on any interest paying…

Q: A firm borrows $100,000 under a 3 year agreement at 12% interest. The loan requires annual payments…

A: Balloon is payment at the end of the period of a loan that is paid to close and paid all loans…

Q: A 5% loan note was issued on 1st April 2020 at its face value of £40 million. Direct costs of the…

A: Notes payable refer to the debt instrument that is issued to raise capital or funds from the public.…

Q: 5 years from now payments: $500 of 6 years. What est rate of 6% cc

A: in this we have to find out present value of all and future value of remaining.

Q: An obligation of P25,000 with interest of 5% compounded semi-annually must be paid at the end of…

A: Compound interest is the extra interest to the principal amount. In simple it can be defined as…

Q: ABC’s bank offered a loan with conditions of a P5,000,000 face amount, 6-month term, 4% interest…

A: Effective annual interest rate is the interest rate which an investor expects in a year after taking…

Q: An IOU agreement was made between two persons. For a face value of $100,000, it was agreed that the…

A: Face value = $100000 Annual payment (A) = 10.50% of Face value = $10500 Redemption value (R) = 90%…

Q: A personal loan of RM100,000 is offered with two repayment options as follows: First option is to…

A: Given:

Q: Abc Investment Ltd., plans to borrow Ghc100,000 for a 90 day period from Lloyds Finance Company. Abc…

A: Given  The amount borrowed is Ghc 100,000. The interest for 90 days is Ghc 5,000

Q: Exactly 10 years ago a loan was taken out that was to be repaid by level annual instalments made in…

A: Here, Particulars Values Annual payment of loan (PMT)  £ 1,043.05 Effective annual interest…

Q: A loan is to be amortized by a group of five end of year payments forming an ascending arithmetic…

A: A loan is a sum of money borrowed from a third party, such as a bank, and returned over time in…

Q: Consider a debt that must be repaid over a nine-year period in progressively larger half-yearly…

A: Loans refer to contracts between parties where money is forwarded by one party to the other on the…

Q: A loan of 200000€ will be repaid with %12 nominal interest. convertible over 3 months. the debt is…

A: Loan Amount is 200,000 Nominal interest rate convertible over 3 months is 12% Time period is 72…

Q: A debt of $17,000 is being repaid by 17 equal semiannual payments, with the first payment to be made…

A: Repayment of debt is made in fixed installments which include interest payment and also part of…

Q: Heathcliff owes $10,000.00 bearing interest at 6% c.m. for 5 years. Six months before the due date,…

A: The calculation of balance at the end of 4.5  years has been made as follows:

Q: A loan of £9,400 is to be repaid over a 11-year contract by three initial payments of £3,000, £2,000…

A: Present value is an estimate of the present value of future cash values ​​that may be received at a…

Q: Consider a debt that must be repaid over a nine-year period in progressively larger half-yearly…

A: Loans refer to contracts between parties where money is forwarded by one party to the other on the…

Q: On 1/1/2017, a loan of RM80,000 was taken and has to be repaid in level payment at the end of each…

A: Given:

Q: A debt is to be paid with 24 equal quarterly installments and an interest rate of 36% NM. If once…

A: Interest Rate  36% New Installments  $     6,80,000.00 Time Period of refinance (Months) 12…

Q: A loan of £10,200 is to be repaid over a 11-year contract by three initial payments of £1,000,…

A: Loan amount = £10,200 Annual nominal interest rate = 7.3% convertible quarterly Quarterly interest…

Q: nvestor is paying £467.28 monthly instalments in arrears to a lender in order to service a 5-year…

A: Loans are paid by monthly payments and these monthly payments carry interest and loan payments…

Q: rrower takes out a 15-year loan for $65000 with equal end-of-month payments. The annual nominal…

A: Loans are amount of borrowing done that have fixed period and interest rate and these loans are paid…

Q: P2,000 loan was originally made at 8% simple interest for 4 years. At the end of this period, the…

A: Under simple interest , interest is calculates on principal amount of loan. Formula of interest is…

Q: The mortgage contract states that the debtor must pay a minimum of P100,000 per year on the 7%…

A: Sometimes the lenders allow to pay annual payment and some lump sump payment at the end of mortgage…

Q: A client has the following obligations: $20,000 maturing in 2 years with interest at 5%…

A: To analyze the client's obligations and determine whether it's possible to replace the debts…

Q: A loan of $3000 is to be repaid by level monthly installments in arrears over a period of 3 years.…

A: Annual percentage rate (APR) refers to the annual cost of funds borrowed.

Q: An obligation will be amortized by quarterly payments of P670 for 10 years, If interest is at 6%…

A: Quarterly payment (P) = P 670 Period = 10 Years Number of monthly payments (n) = 10*12 = 120…

Q: De Lima Enterprise plans to borrow 1,000,000 for eight years at 9% with a bank term loan.The bank…

A: Here in this case , to calculate the annual installment we have to use the following formula…

Q: A loan of £50, 000 is repayable by equal payments at the end of each of the next 5 years. Interest…

A: A sum of money payable as one of the numerous equal payments over a certain period of time is…

Q: A floating rate mortgage loan is made for $185,000 for a 30-year period at an initial rate of 12…

A: The concept of the time value of money acknowledges that the value of money today differs from its…

Q: You enter into a five-to-eight-month forward rate agreement with a firm. You agree to lend the firm…

A: Present value, also known as present discounted value, is a financial concept that represents the…

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.