Alex loans Nomar $100,000 at a rate of 4% nominal interest convertible quarterly. They agree that Nomar will repay theloan by making quarterly payments. These payments will each be $25,000 except for the last payment which will be a droppayment. Find the total length of the loan. (Round your answer up to the nearest integer.)paymentsFind the amount of the final payment. (Round your answer to the nearest cent.)

Present value = pv = $100,000 Compound = quarterly = 4 Interest rate = r = 4 / 4 = 1% Payment = p =…

Answered: Alex loans Nomar $100,000 at a rate of…

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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Johnny has a loan for $50,000 at a rate of i(4) = 8% on which he makesquarterly payments of $2,000. In addition, Johnny is depositing $500 a quarter intoan account earning i(4) = 4%: After how many periods will the account have enoughmoney to repay the loan?
Number of payments. Tony is offering two repayment plans to Phil for a long overdue loan. Offer 1 is to receive a visit from an enforcer and the debt is due in full at once. Offer 2 is to pay back $3,800 at the end of the year at an interest rate of 17% until Phil pays off the loan principal. Phil owes Tony $12,000. How long will it take for Phil to pay off the loan if he takes offer 2? How long will it take for Phil to pay off the loan if he takes offer 2?
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Someone buys a car for 12,000$ and puts 25% down. They then get a simple interest amortized loan for the rest of the amount at 7% for 4 years. Their month payment is 215.52, and total interest in 1344.96. What are the loan fees for this if the lender states that APR of the loan is 7.2%?
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Number of payments. Tony is offering two repayment plans to Phil for a long overdue loan. Offer 1 is to receive a visit from an enforcer and the debt is due in full at once. Offer 2 is to pay back $3,800 at the end of the year at an interest rate of 23% until Phil pays off the loan principal. Phil owes Tony $12,000. How long will it take for Phil to pay off the loan if he takes offer 2?
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