3Buzz received a 5-year $130000 loan at 4% p.a. monthly reducible interest. If the interest rate wasincreased to 5% p.a., find the increase in the total repayments needed to clear the debt.Monthly repayments on a $1000 loanTerm of Loan in yearsAnnual10152025interest rate2%17.539.206.445.064.243%17.979.666.915.554.744%18.4210.127.406.065.285%18.8710.617.916.605.856%19.3311.108.447.166.447%19.8011.618.997.757.074Hiring a bus costs $600 regardless of the number of passengers.aWrite an equation that relates the number of passengers (n) to the unit price per passenger (p).bHow much will each passenger pay if there are 20 passengers?

Hi, since you have posted multiple question, we will answer the first one, as per the authoring…

Answered: Buzz received a 5-year $130000 loan at…

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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Consider a home mortgage of $125,000 at a fixed APR of 4.5% for 25 years. a. Calculate the monthly payment. b. Determine the total amount paid over the term of the loan. c. Of the total amount paid, what percentage is paid toward the principal and what percentage is paid for interest. ..... a. The monthly payment is $ (Do not round until the final answer. Then round to the nearest cent as needed.)
Go Debt Bank Limited quotes a 9 percent interest rate on loans for 1 year. You are seeking a loan of $50,000 and as such you are expected to pay $4,500 in interest for the year. The terms of the loan requires you to repaythe principal and interest at the end of year one = $54,500. Go Debt Bank Limited thus requires you to pay $54,500 over a 12 month period, or $4,541.67, per month over the next 12 months. I s this a 9 percent loan? What rate should be legally quoted? What is the effective annual rate? Kindly show all workings in details.
Consider a loan of $1,000 for five years with 10% add-on interest and the loan is to be paid off in five year-end payments. The funds that are borrowed (available to the borrower) are $1,000 and the “interest” is $100 × 5 = $500. The installments are calculated based on a loan principal amount of $1,000 + 500 = $1,500: $1,500/5 = $300 each. How much is the borrower really paying to borrow $1,000? Let’s restate this loan in more familiar terms: Present value = $1,000 Number of payments = 5 Amount of each payment = $300 and $1,000 = $300(present value of an annuity for T = 5 and r = ?) What is r=?
Investigate the effect of the interest rate on simple interest amortized auto loans by finding the monthly payment and the total interest for a four-year loan of $15,000 at the following interest rates. (Round all answers to the nearest cent.) (a) 6.5% payment total interest (b) 6.75% payment total interest (c) 7.0% payment total interest $ 355.72 $ 2054.04 $ 357.46 $2174.04 $ 359.19 $ 2280 (d) 8.0% payment $366.19 total interest $ 2606.04 X X X
You borrow $145,000 and must make annual loan payments of $11,635.18 for 20 years, starting at the end of the year. What interest rate are you being charged? a. 5% b. 7% c. 8% d. 9% e. 6%
A basic ARM is made for $217,000 at an initial interest rate of 6 percent for 30 years with an annual reset date. The borrower believes that the interest rate at the beginning of year (BOY) 2 will increase to 7 percent. Required: a. Assuming that a fully amortizing loan is made, what will the monthly payments be during year 1? b. Based on (a) what will the loan balance be at the end of year (EOY) 1? c. Given that the interest rate is expected to be 7 percent at the beginning of year 2, what will the monthly payments be during year 2? d. What will be the loan balance at the EOY 2? e. What would be the monthly payments in year 1 if they are to be interest only?
Consider a business loan maturing in three years that has three remaining annual payments in one, two, and three years. The annual payments are all equal to $2 Million. While analyzing the loan, you are using a YTM equal to 9%. Determine the duration of the loan. 1.94 O 2.00 O 1.91 O 3.00 O 1.83
Go Debt Bank Limited quotes a 9 percent interest rate on loans for 1 year. You are seeking a loan of $50,000 and as such you are expected to pay $4,500 in interest for the year. The terms of the loan requires you to repaythe principal and interest at the end of year one = $54,500. Go Debt Bank Limited thus requires you to pay $54,500 over a 12 month period, or $4,541.67, per month over the next 12 months.Is this a 9 percent loan? What rate should be legally quoted? What is the effective annual rate? Show all working.
Consider a student loan of $10,000 at a fixed APR of 6% for 4 years. a. Calculate the monthly payment. b. Determine the total amount paid over the term of the loan. c. Of the total amount paid, what percentage is paid toward the principal and what percentage is paid for interest. a. The monthly payment is $. (Do not round until the final answer. Then round to the nearest cent as needed.)
Investigate the effect of the term on simple interest amortized auto loans by finding the monthly payment and the total interest for a loan of $10,000 at 7 and 7/8% interest if the term is the following. (Round all answers to the nearest cent.) (a) 3 years. Payment $312.79 Total interest $ 1260.34 (b) 4 years. Payment $ 243.54 Total interest $ (c) 5 years. Payment Total interest $ $ 202.17 X
basic ARM is made for $220,000 at an initial interest rate of 6 percent for 30 years with an annual resetdate. The borrower believes that the interest rate at the beginning of year (BOY) 2 will increase to 7 percent. Required:a. Assuming that a fully amortizing loan is made, what will the monthly payments be during year 1? b. Based on (a) what will the loan balance be at the end of year (EOY) 1? c. Given that the interest rate is expected to be 7 percent at the beginning of year 2, what will the monthlypayments be during year 2? d. What will be the loan balance at the EOY 2 ? e. What would be the monthly payments in year 1 if they are to be interest only?
(please step by step solutions) The loan will have a term of 54 months and monthly payments of $385.13. The interest rate on the loan is 8.84% compounded quarterly. What is the amount of money that was borrowed? a$17 310.71 b$17 430.71 c$17 030.71 d$17 130.71 e$20 368.27

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