A sum of $80,000 is to be repaid over a 10-year period through equal installments made at the end of each year.

Q: Find the effective interest rate for a $1,500 loan for four years compounded semiannually at an…

A: Calculation of Effective Interest Rate:The effective interest rate is 8.16%.Excel Spreadsheet:

Q: Determine the payment to amortize the debt. (Round your answer to the nearest cent.) Monthly…

A: Monthly Payment refers to the payment that is to be paid monthly for a specific period of time to…

Q: Sam's borrows $250.000 payable over five years, with an interest rate of 10% per year on the unpaid…

A: PV=Loan amount = $250,000r=annual rate = 10%n=years = 5C= annual payment…

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 $23,300 loan is to be settled by making payments of $7,460 at the end of every six months. The…

A: Present Value of annuity is used to calculate the loan periodic payments. To calculate number of…

Q: Banes Co. wants to borrow $300,000 on an add-on basis at a simple rate of 12.00% to be paid in nine…

A: Interest is the cost of borrowing payable at regular or flexible intervals. The simple rate of…

Q: Find the amount of the final payment if it is to be larger than the regular payments.

A: Present value illustrates the current value of a sum of money that will be received or paid in the…

Q: Compute the compound amount and the interest on a loan of $10,500 compounded annually for four years…

A: The computation of compound amount is as follows:Hence, the compound amount of loan is $16910.355.

Q: An amount of $13,000 is borrowed from the bank at an annual interest rate of 14%. a. Calculate the…

A: Amount borrowed - $ 13,000 Annual interest rate - 14% Loan period - 4 years

Q: Two debts, the first of $600 due nine months ago and the second of $1700 borrowed one year ago for a…

A: Future value of a present value is the value of that amount after taking into account the time…

Q: A loan of $10200 is to be amortized with quarterly payments over five years.  The interest on the…

A: Amortization of a loan refers to the process of gradually paying off the loan debt over a specific…

Q: A loan is being repaid with 20 payments of 1500 at the end of each year. Interest is calculated at…

A: In the question above. With prospective method we will discount all the outstanding payments due on…

Q: A loan of $ 8500 is to be repaid in 39 equal monthly installments with the first one paid seven…

A: Here borrowers understand how much they need to budget each month to repay their loan within a…

Q: A payment of $4,500 was made into an account at the end of every 3 months for 12 years. a. If the…

A: The FV of an investment refers to the combined value of the cash flows of the investment at a future…

Q: is amortized by level payments made at the end of each quarter for 25 years.Tge monthly rate is…

A: Amortization refers to the breakdown of loan payments into principal and interest portions. It…

Q: If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the…

A: Liability Liability is define as the financial obligation on the company which are arises during the…

Q: 7. An amount of 24,000php is borrowed for 15 years at a rate of 2%. Make an amortization schedule…

A: Using PMT function in excel  PMT (rate,nper,pv,[fv]) Amortization schedule

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.