Consider a loan of 800,000 which is to be amortized by 60 monthly payments. The interest rate is 12% converted monthly. 1. How much is the outstanding balance after the 36th payment? 2. How much of the 37th payment goes to pay the interest the principal?

Q: Suppose you borrow $8500 for a term of five years at a simple interest and 8.25% APR. how much is…

A: Interest is the cost of borrowing the money.

Q: Consider a loan of 1,000,000 which is to be amortized by 60 monthly payments. The interest rate is…

A: Loan (mortgage) amortization schedule refers to a schedule which is prepared to shows the periodic…

Q: A loan was to be amortized by a 5 end-of-year payments forming an ascending arithmetic progression.…

A: Here, First Payment is P 10,000 Increase in Payment is P1,000 Interest Rate is 10% Time Period of…

Q: Reya paid Php 9,250 on a loan made 6 months before at 12% simple interest. Find the interest…

A: Simple interest is simple interest without any compounding that means no interest on interest…

Q: Suppose you take out a loan for 180 days in the amount of $11,500 at 14% ordinary interest. After 60…

A: A loan is an amount borrowed by a party in exchange for its repayment along with some interest.

Q: Suppose you take out a loan for 180 days in the amount of $15,500 at 13% ordinary interest. After 40…

A: answer principal amount = $15,500 rate of interest = 13% partly payment  after 40days  partly…

Q: A loan of $1000 is paid off in 12 monthly payments of $120 each. What is the effective annual…

A: Borrowings are the liability that is used to finance the requirement of the funds. The borrower…

Q: be repaid by a payment of $1200 in six mo: rest is 10% compounded monthly, when she

A: Given: Loan amount = $2000 Instalment Paid after 6 months = $1200 Final Instalment = $1000 Interest…

Q: Find the annual simple interest rate of a loan, where $800 is borrowed and where $888 is repaid at…

A: Given information: Principal (P) = $800 Amount repaid (A) = $888 Time in year (t) = (4 / 12) =…

Q: (1) The total amount of a loan to which interest has been added is P 200,000. The term of the loan…

A: Data given: Total interest = P200,000 t=4.5 years Simple interest = 6%   Formula for simple interest…

Q: A company has a loan of 80,000 to be paid in 20 level annual payments. The interest and the…

A: Loans are paid by annual payments that carry the interest and loan amount but annual payments are…

Q: what is the interest rate

A: Interest rate is the rate at which the bank or any other lenders charges from the borrowers for…

Q: Consider a loan of 1,000,000 which is to be amortized by 60 monthly payments. The interest rate is…

A: Loan Amount = 1,000,000 Interest Rate = 10% Time Period = 60

Q: "If a loan of 1 million is made for 7 days at a rate of 5% per annum, how much interest would be…

A: p = $1000,000 d = 7 days r = 5%

Q: Simple interest of P1,235 is owed on a loan of P9,500 after four years and four months. What is the…

A: Simple interest amount (I) = P1,235 Loan amount (P) = P9,500 Period (t) = 4 Years and 4 months =…

Q: The principal P is borrowed at a simple interest rate r for a period of time t. Find the loan's…

A: Simple interest refers to an interest determination methodology that does not take the effects of…

Q: a) How much is the principal repayment in the first year for a USD 100'000 annuity loan with an…

A: Data given: Loan amount= USD 100,000 Interest rate= 2.5% (assumed compounded annually) n=4 years

Q: Consider a loan of $98,000 at 7% compounded annually, with 12 annual payments. Find the following.…

A: Loan amortization can be defined as the procedure of amortizing the loan in such a way that the loan…

Q: To payoff a loan of $1000 you need to make 40 payment of $36.56 per month. What rate of interest are…

A: Annual percentage rate refers to the interest rate paid by the borrower to the lender on a yearly…

Q: What are the weekly payments on a 6-year, $80,000 loan if the interest rate is 14%?

A: Using excel PMT function

Q: Assume we have a $14,500,000 loan with a 2.25% interest rate, with an annual payment of $750,000.…

A: A number of years are described as the period to be consumed for the repayment of loan amount with…

Q: What would be the total interest paid

A: Interest is charged on the amount lent by the lender to the borrower. In short, any excess payment…

Q: A loan of size L is to be paid off by payments of 2000 each year for 10 years. The principal repaid…

A: The question is based on the concept of loan amortization and sinking fund. The question can be…

Q: If $14,000 is borrowed for 2 months and $82 is paid, then the annual simple interest rate is ____

A: Interest = p * r * t Interest = $82 principal = $14,000 r = rate of interest  t = time in years = 2…

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: How much is the amount of interest on a loan of $12330.7 that is borrowed today and is to be repaid…

A: Future value refers to the value of a current asset on some future date affected by the interest…

Q: Calculate the number of months required to repay the loan.

A: When we borrow money from the borrower, we need to repay the periodical installments to repay the…

Q: A person is repaying a loan of $50000 at $200 per month. The interest rate is 3% per month. Form a…

A: PMT is the periodic payment made.

Q: What is the simple interest due on a 5 year loan of 4,00,000 if the annual rate is 6%.

A: Simple Interest is a method of calculating interest on the loan. It is calculated on the amount…

Q: Determine the monthly payment for the installment loan. Amount Financed​ (P) =$1000 Annual…

A: We will use following formula to calculate monthly installment :   Monthly Payment = Loan Amount ×…

Q: A debt of $5,000.00 is to be paid off with 6 equal semi-annual payments. If the interest rate is 15%…

A: The annuity refers to the equal payments that can be expected from an investment or it can also…

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.