correct answers are i) = 16,775. ii) = 15,293.38. iii) for a) 15,131.79 and for b) 167.64 no tables, only formulas, please A loan is to be repaid by an annuity payable monthly in arrears over a 5-year period. The annuity starts at a rate of £200 per month and increases each month by £5. Repayments are calculated using a rate of interest of 8% per annum effective. (i) Calculate the amount of the original loan to the nearest £. (ii) Calculate the capital outstanding at the end of the first year (after the payment due has been made) to the nearest £0.01. (iii) Hence, or otherwise, calculate the capital and interest components of the 13th and 14th payments.
correct answers are i) = 16,775. ii) = 15,293.38. iii) for a) 15,131.79 and for b) 167.64 no tables, only formulas, please A loan is to be repaid by an annuity payable monthly in arrears over a 5-year period. The annuity starts at a rate of £200 per month and increases each month by £5. Repayments are calculated using a rate of interest of 8% per annum effective. (i) Calculate the amount of the original loan to the nearest £. (ii) Calculate the capital outstanding at the end of the first year (after the payment due has been made) to the nearest £0.01. (iii) Hence, or otherwise, calculate the capital and interest components of the 13th and 14th payments.
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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correct answers are i) = 16,775. ii) = 15,293.38. iii) for a) 15,131.79 and for b) 167.64
no tables, only formulas, please
A loan is to be repaid by an
(i) Calculate the amount of the original loan to the nearest £.
(ii) Calculate the capital outstanding at the end of the first year (after the payment due has been made) to the nearest £0.01.
(iii) Hence, or otherwise, calculate the capital and interest components of the 13th and 14th payments.
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