A N$1000 loan is repaid by annual payments of N$150, plus a smaller final payment. The first payment is made one year after the time of the loan and construct an amortization schedule and determine the size of the last payment interest rate=10% per annum time=3 years

A N$1000 loan is repaid by annual payments of N$150, plus a smaller final payment. The first payment is made one year after the time of the loan and construct an amortization schedule and determine the size of the last payment interest rate=10% per annum time=3 years

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: A demand loan of $3000.00 is repaid by payments of $1500.00 after two years, $1500.00 after four…

A: A. Amount outstanding at the end of 2nd Year $ 3000 (1+0.08/2)2x2 $3509.57568 B.…

Q: A basic ARM is made for $217,000 at an initial interest rate of 6 percent for 30 years with an…

A: A loan agreement is a legal document that outlines the terms and conditions of a loan between a…

Q: You borrow B20,000 for a term of 20 years to be repaid by level annual instalments. The rate of…

A: The regular fixed periodic payments made are considered annuity payments. The current worth of all…

Q: A monthly amortizing, $ 100,000 fixed-rate loan amortizes fully in 30 years and has a contract rate…

A: Loan is defined as the funds that are borrowed in an exchange of the repayment of the principal loan…

Q: find the term of the loan n if the amount of interest paid in the 10th payment is 300

A: Amortization is the process of repaying the loan. In an amortizing loan, a portion of each monthly…

Q: A 20-year loan of 20, 000 may be repaid under the following two methods: i. amortization method with…

A: given that: Loan Amount=20000 Loan period= 20 years The excel formula is:

Q: A loan of $10,000 today is to be repaid by annual payments of $800 to commence one year from now and…

A: Final payment:The "final payment" represents the concluding installment in a series of financial…

Q: Calculate the present value of a loan that could be cleared by payments of $3,250 at the end of…

A: We need to use present value of ordinary annuity formula to calculate the loan amount for given…

Q: A demand loan of $3000.00 is repaid by payments of $1000.00 after two years, $1000.00 after four…

A: Loans are paid by payments and these payments carry the payment for interest and payment for loan…

Q: Consider a loan of $98,000 at 7% compounded annually, with 12 annual payments. Find the following.…

A: Loan amortization can be defined as the procedure of amortizing the loan in such a way that the loan…

Q: Complete the first three lines of an amortization schedule for the following loan: You borrow $…

A: Given:

Q: A 5-year $10,000 loan with a 15-year amortization period is being offered at the rate of 10%…

A: When the borrower avails a loan from the lender, he has to pay a rate of interest on the borrowed…

Q: Develop an amortization schedule for the loan described below. $45,000 for 2 years at 5% compounded…

A: The question is based on the concept of Loan and amortization, Annuity.

Q: A loan of $6000 at 6% is compounded semiannually for four years. Find the future value and compound…

A: Future value: This is the amount of present value accumulated or compounded at a rate of interest…

Q: A $17000 loan is to repaid by monthly payments of $390, the first payment is due in one year's time.…

A: given, pv = $17000 pmt = $390 r=10% m=12

Q: A partially amortizing loan for $100,000 for 10 years is made at 9 percent interest. The lender and…

A: A loan is a financial arrangement in which a borrower receives a sum of money from a lender with the…

Q: Find the periodic payment R required to amortize a loan of P dollars over t years with interest…

A: The periodic amount will be found using excel’s PMT function. It is the minimum amount that must be…

Q: A 20 year/$10, 000 loan with interest i = 9% is to repaid with 12 payments of X at the end of each…

A: To solve this problem, we first need to find the value of X, the annual payment for the first 12…

Question

interest rate=10% per annum

time=3 years

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

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 $4000 at 6% is compounded semiannually for two years. Find the future value and compound interest. Use the compound interest formula. Click here to view page 1 of the future value table. Click here to view page 2 of the future value table The future value of the loan is $ The compound interest is S (Round to the nearest cent as needed.) (Round to the nearest cent as needed.) 00 future value table or the future value and
A demand loan of $5000.00 is repaid by payments of $2500.00 after two years, $2500.00 after four years, and a final payment after six years. Interest is 99% compounded quarterly for the first two years, 10% compounded monthly for the next two years, and 10% compounded annually thereafter. What is the size of the final payment? The final payment is $. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
Consider a loan of 1,000,000 which is to be amortized by 60 monthly payments. The interest rate is 10% converted monthly. Construct the first 5 rows (t=0 to t=4) of the amortization schedule
A loan of 2000 is taken now and is agreed to be repaid as follows: annual payments of 200 each for as long as possible and a final payment of 200+ X where X < 200; the first payment is due 10 years from now. The effective annual rate is 4%. a) How many payments of 200 are made? b) What is the amount of the final payment?
a demand loan of 7000$is repaid by payments of 3500$ after two years, 3500$ after four years and a funal payment after seven years. interfest rate is 9% compunded quarterly for the first two years, 10% compoiunded annuannly for the next two years, and 10% compounded mointhly thereafter. what is the size of the final payment?
Complete the following from the first three lines of an amortization schedule for the following loan:You borrow $ 210000 with an annual interest rate of 6.25% over 20 years Starting principal = $ 210000New balance after month 1 payment = New balance after month 2 payment = New balance after month 3 payment =
Find the periodic payment R required to amortize a loan of P dollars over t years with interest charged at the rate of r%/year compounded m times a year. (Round your answer to the nearest cent.) P = 40,000, r = 5, t = 19, m = 4
Construct an amortization schedule for a £2,000 loan that has a 10% annual interest rate that is repaid in three equal installments.
Prepare an amortization schedule for a four-year loan of $40000. The interest rate is 8 percent per year, and the loan calls for equal annual payments. Rework it by assuming that the loan agreement calls for a principal reduction of $10000 every year instead of equal annual payments. include excel file
A basic ARM is made for $217,000 at an initial interest rate of 6 percent for 30 years with an annual reset date. The borrower believes that the interest rate at the beginning of year (BOY) 2 will increase to 7 percent. Required: a. Assuming that a fully amortizing loan is made, what will the monthly payments be during year 1? b. Based on (a) what will the loan balance be at the end of year (EOY) 1? c. Given that the interest rate is expected to be 7 percent at the beginning of year 2, what will the monthly payments be during year 2? d. What will be the loan balance at the EOY 2? e. What would be the monthly payments in year 1 if they are to be interest only?
a demand loan of $3000 is repaid by payments of $1500 after two years, $1500 after four years, and a final payment after six years. interest is 7% compounded quarterly for the first two years, 8% compounded annually for the next two years, and 8% compounded quarterly thereafter. what is the size of the final payment?