A payment of $2,800 is due in 2 years and $3,500 is due in 4 years. These two original payments are to be rescheduled with a payment of $2,000 in 1 year and the balance in 3 years. Calculate the payment required in 3 years for the rescheduled option. Assume that money earns 4.5% compounded semi-annually.

A payment of $2,800 is due in 2 years and $3,500 is due in 4 years. These two original payments are to be rescheduled with a payment of $2,000 in 1 year and the balance in 3 years. Calculate the payment required in 3 years for the rescheduled option. Assume that money earns 4.5% compounded semi-annually.

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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Payments of $1,800 in 1 year and another $2,700 in 6 years to settle a loan are to be rescheduled with a payment of $1,000 in 18 months and the balance in 36 months. Calculate the payment required in 36 months for the rescheduled option to settle the loan if money earns 3.85% compounded semi-annually during the above periods. Round to the nearest cent
Payments of $1,400 in 1 year and another $2,800 in 4 years to settle a loan are to be rescheduled with a payment of $1,000 in 17 months and the balance in 34 months. Calculate the payment required in 34 months for the rescheduled option to settle the loan if money earns 5.3% compounded monthly during the above periods. Please provide detailed solution.
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 payment of $2,550 is due in 2 years and $3,200 is due in 4 years. These two original payments are to be rescheduled with a payment of $2,000 in 1 year and the balance in 3 years. Calculate the payment required in 3 years for the rescheduled option. Assume that money earns 4.5% compounded semi-annually.
A 3/1 ARM is made for sh.150,000 at 7 percent with a 30-year maturity.i) Assuming that fixed payments are to be made monthly for three years and that the loan is fully amortizing, what will be the monthly payments? What will be the loan balance after three years?ii) What would be the new payments beginning in year 4 if the interest rate fell to 6 percent and the loan continued to be fully amortizing? iii) In (i) what would monthly payments be during year 1 if they were interest only? What would payments be beginning in year 4 if interest rates fell to 6 percent and the loan became fully amortizing?
Scheduled payments of $434 due two years ago and S1096 due in five years are to be replaced by two equal payments. The first replacement payment is due in three years and the second payment is due in seven years. Determine the size of the two replacement payments if interest is 1.9% compounded quarterly and the focal date is three years from now. The size of the two replacement payments is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
A leasing contract calls for an immediate payment of $108,000 and nine subsequent $108,000 semiannual payments at six-month intervals. What is the PV of these payments if the annual discount rate is 12%? (Hint: First find the semiannual rate that is equivalent to the annual rate.) Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
Could you please help me to solve this?
Two payments of $11,000 and $7,500 are due in 1 year and 2 years, respectively. Calculate the two equal payments that would replace these payments, made in 3 months and in 4 years if money is worth 10.5% compounded quarterly. Round to the nearest cent
Find the present value of $10,000 if interest is paid at a rate of 9% per year, compounded semiannually, for 2 years. (Round your answer up to the nearest cent.)
Scheduled payments of $5000 due now and $1500 due in 3.5 years are to be replaced by a payment of $3500 due in 2.5 years and a second payment due in five years. Determine the size of the second payment if interest is 5% compounded quarterly.
Give typing answer with explanation and conclusion

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