An investor had a bank loan to help him in his business. The deal with the bank states that the loan time will be for 8 years for an annual interest rate of 8%, with the investor paying equal payments of 1,000,000 Dhs for the first 4 years and then an increment of 100,000 Dhs per year starting from the fifth year till the loan time ends. 1- The present worth of the first three years is : Dhs. 2- The present worth of the loan is * Dhs.

Q: The contractor owner applied for a loan to the bank and was approved for a loan of Rp. 1 billion…

A: Initial Loan = 1,000,000,000 Interest Rate = 10% Total Time Period = 10 years

Q: You are in negotiations to make a 7 - year loan of $31, 000 to DeVille Corporation. To repay you,…

A: Loan amount  (Initial investment) = $31,000Cash flow at the end of year 1 = $2,500Cash flow at the…

Q: JG Asset Services is recommending that you invest $1,400 in a 5-year certificate of deposit (CD)…

A: Solution:- When an amount is invested somewhere, it earns interest on it. The amount initially…

Q: An institutional lender is willing to make a loan for $1 million on an office building at a 6…

A: Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the first…

Q: A financier has made a loan of $12 million. The contract for the loan calls for payment of interest…

A: Value of assets is the present value of interest payments and present value of the face value of…

Q: ompound intere

A: Loan 1 : Principal Amount ( P1)= Rp. 500 million  Compound Interest on P1 (r1)= 10 %p.a. Time period…

Q: To travel to America via the ship Titanic, Juan made a P100,000 loan which is to be repaid over a…

A: We have to find the annuity that will accumulate to the desired value at the end of the term.…

Q: Emily has borrowed $1 000 000 from MQ Bank for 10 years at an interest rate of j2 = 4.1% p.a. She…

A: The objective of this question is to find the value of Emily's annual payment amount, X, for the…

Q: Salem has borrowed $1,000,000 from MQ Bank for 10 years at an interest rate of j2=3.91%. She will…

A: When the lender lends a loan to the borrower, he charges a rate of interest on the borrowed amount.…

Q: Assume you borrowed $20,000 and the terms of the loan include paying 4% interest for a period of 10…

A:

Q: Niles needs £650,000 to set up his business. Bank A is willing to lend him the money under the…

A: The amortization schedule refers to the breakdown of payments of a loan. It is used by borrowers to…

Q: A bank has a special deal that if a customer agrees to keep the money with the bank for 2 years, the…

A: Effective interest rate is the interest rate after considering the impact of compounding on…

Q: A person deposits an amount of 20,000 dinars in a financial institution with compound interest, the…

A: Amount of Deposit = 20,000 Interest Rate (r) =1% Years (n) =12

Q: A businessman obtains a loan of $100,000 for a 5-year term with an interest rate of 7% per year,…

A: The loans are paid by periodic payments and these payments carry the payment for interest and loan…

Q: rrowed $1 000 000 from MQ Bank for 10 years at an interest rate of j2=3.11% p.a. She will make 10…

A: Loan Amount$ 1000,000Interest rate3.11%Annual Installment10Loans are paid by equal annual payments…

Q: A customer repays a loan of 22,000 that has an effective annual interest rate of 5.15% by making…

A: We take loans to buy large ticket items that otherwise we cannot afford. The loan is then repaid by…

Mortgages

A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.

Mortgage

The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.