Anna borrows 188000 from a bank for a term of 21 years. The loan is to be repaid by level annual repayments, paid in arrears, and the interest rate is 5% per annum effective. Calculate the capital outstanding immediately after the 6th payment. Give your answer to two decimal places.

Q: For how long will Markus have to make payments of $179 at the end of every year to repay a loan of…

A: Loan amount=$2130Annual payment=$179Interest rate=7%Compounding quarterly.

Q: A $5000 loan at 10% compounded annually is to be repaid by two payments three and five years from…

A: Loan amount = $5000First payment = $3000Required rate of return =9%To find: The purchase price for…

Q: A loan is to be repaid by an increasing annuity. The first payment will be £100 and the payments…

A: Part 2:Explanation:i) Calculate the amount of the loan.The loan is to be repaid by an increasing…

Q: If you borrow $15,500 with a 5 percent interest rate to be repaid in seven equal payments at the end…

A: Answer of the given question is below with the proper explanation. Note-final answer is rounded at…

Q: Complete an amortization schedule for a 542, 000 loan to be repaid in equal instaliments at the end…

A: Loans taken from banks and financial institutions have to be repaid. The repayment is done in the…

Q: You are making $5,000 monthly deposits into a fund that pays interest at rate of 6% compounded…

A: We need to use the concept of time value of money (TVM) to solve the question. According to TVM, the…

Q: You borrow $5000 at 10% per year and will pay off the loan in 3 equal annual payments starting one…

A: Calculation of Payment at the end of Year 2:The interest payment is $348.94 and principal payment is…

Q: A payment of $500 is made at the end of each month for three years to a savings account. The…

A: Present value method is used to evaluate the different level of investment projects. With the help…

Q: Dan borrowed $1496.00 today and is to repay the loan in two equal payments. The first payment is in…

A: Let the equal installments be X.PV= C/(1+r)^nWhere C= Cashflows = X,r= 7%n= time in years = 3 months…

Q: Laurier Inc. has borrowed $ 65000 from its bank. The annual interest rate on the loan is 4%…

A: Solution Given Amount borrowed $65000 Interest rate 4% Compounding Annually…

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

A: Principal Amount = p = $10,200Compound = Quarterly = 4Time = t = 5 * 4 = 20Interest rate = r = 7.5 /…

Q: You just obtained a loan of $18,805 with monthly payments for four years at 8.18 percent interest,…

A: Monthly payment refers to an amount that is paid every month for the repayment of loan amount by the…

Q: Calculate the future sum of $1,200, given that it will be held in the bank for 5 years and earn 14%…

A: Below details are given in the question : Present value = $1200 Time period = 5 years  Interest rate…

Q: Van Buren Resources Inc. is considering borrowing $100,000 for 202 days from its bank. Van Buren…

A: Given:Borrowing amount=$1000000 for 202 daysPayable amount $3000 of interest at maturityRepaid…

Q: Ferris Bueller has borrowed from the Ferrari Bank at a rate of 7% and will repay the laon with…

A: The current worth of the cash flows or an asset after discounting is termed as the present value.

Q: Find the monthly payment for the loan indicated. (Round your final answer to two decimal places.)…

A: Formula to calculate EMI:  EMI= (P X R/12) X [(1+R/12) ^N] / [(1+R/12) ^N-1] Wherein:  P = Loan…

Q: A person borrows $9000 from a bank and agrees to pay it off by equal payments at the end of each…

A: > Given data:> Principal amount = $9000> Time period = 2 Years> Total number of payments…

Q: A deposit of $5,000 per year is done starting at year 1 for 5 years. The sum of $60,000 is required…

A: Future value of the annuity is the amount that is being deposited each period and also amount of…

Q: You have borrowed OMR 12,000 today at 4.5% rate of interest per annum from National Bank of Oman.…

A: given, P = omr 12000 r= 4.5% n = 5

Q: Find the interest rates earned on each of the following. Round each answer to two decimal places.…

A: The time value of money is an essential financial concept that implies that a dollar amount in one's…

Q: Excellent bank has offered you, a GHC 60,000 35year loan to purchase equipment in your Factory. The…

A: Interest is an amount which is charged on deposited or borrowed amount on loan period. It is a cost…

Q: İlhan got a loan of 10.000 TL with a maturity of 10 years with an annual effective interest of 9%.…

A: A mortgage is a loan for a specific amount of money, and mortgage payments are the repayment of that…

Q: A bank pays 6% interest, compounded semiannuall formula to find how much should be deposited (in $…

A: Given, Interest rate = 6% or 0.06 Annual payment (A) = $700 Number of years = 16 years

Q: Use the appropriate formula to find the future value (in $) of $900 deposited at the beginning of…

A: The present value method is used to evaluate the different levels of investment projects. With the…

Q: Dan borrowed $994.00 today and is to repay the loan in two equal payments. The first payment is in…

A: Let the equal installments be X.PV= C/(1+r)^nWhere C= Cashflows = X,r= 7%/12Loan taken = 994

Q: You are paid £2,500 annually for 6 years, with the first payment due in one year and the last…

A: Present value = Annuity * PVA of 1

Q: A businessman wishes to borrow an amount of K4 million for a term of 3 years. The agreed rate of…

A: The loan schedule statement reflects the information related to the principal portion, the interest…

Q: The amount of $7,000 is invested in a certificate of deposit (CD) and will be worth $16,000 in nine…

A: Invested amount=$7000Worth in 9 years=$16000

Q: A loan of £50, 000 is repayable by equal payments at the end of each of the next 5 years. Interest…

A: A sum of money payable as one of the numerous equal payments over a certain period of time is…

Q: You deposit £942 every two years start from the end of Year 4 to the end of Year 40. The interest…

A: We must divide this issue into many steps in order to find a solution: Step 1: Find the…

Q: You have taken out a 20-year loan of $72,000 with 3% interest (APR) compounded monthly and with…

A: Annual percentage rate (APR) is a rate that a person is paying annually after undertaking all the…

Q: A finance company uses the discount method of calculating interest. The loan principal is $5,000,…

A: Future Value = Present Value * (1+r)^n

Q: A loan is to be repaid by an annuity payable monthly in arrears over a 5-year period. The annuity…

A: A repayment schedule, also known as an amortization schedule or loan repayment schedule, is a table…

Q: Find the effective interest rate for a loan for four years compounded semiannually at an annual rate…

A: Effective Interest rate is rate effectively we are paying on a loan on annual basis when compounding…

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.