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Given an interest rate of 4% and a term of 20 years, how much could the city borrow if they paid $1M/ year in payment?
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- at is the external rate of return for the investment project? Should the new computer system be recommended for purchase? 2. You borrow $280,000 at 4.00% per year and will pay off the loan in equal payments starting one year after the loan is made over a period of ten years. What are the annual end-of-year payments? Determine the amount of interest and principal that are paid each year. What is the total interest paid for the loan? 3. A distillation column is designed purchased and installed for a aoat of $a sill:How much must be invested now to receive $50,000 for 8 years if the first $50,000 is received in one year and the rate is 10%?Suppose you wish to borrow $60,000 at an annually compounded interest rate of 16% for a period of 14 years. What would be the annual repayment?
- A borrower looking to borrow $100,000 can obtain an 80 percent loan with an 8 percent interest rate and monthly payments. The loan is to be fully amortized over 25 years. Alternatively, he could obtain a 90 percent loan at an 10 percent rate with the same loan term. What is the incremental ANNUAL cost of borrowing the additional funds? 20.13 17.42 23.98 18.19A loan of 2000 is taken now and is agreed to be repaid as follows: annual payments of 200 each for as long as possible and a final payment of 200+ X where X < 200; the first payment is due 10 years from now. The effective annual rate is 4%. a) How many payments of 200 are made? b) What is the amount of the final payment?What is the present value of an investment that will pay $1,000 in one year's time, and $1,000 every year after that, when the interest rate is 8%?
- Suppose you wish to borrow Php 20,000,000 to buy a parcel of real estate. The lender is willing to lend the money at 10% per annum. Amortize the payments annually over 10 years.Darby Hospital is borrowing $81 million for its medical office building. The annual interest rate is 4%. What will be the equal annual payments on the loan if the length of the loan is 4 years and payments occur at the end of each year?[x]An investment pays $4,000 per year at the beginning of each year for the next 4 years and then $6,000 per year at the beginning of each year for the next 6 years. Using a discount rate of 8%, what is the GPV of these payments?
- How large must each annual payment be if the loan is for $50, 000? Assume that the interest rate remains at 10% and that the loan is still paid off over 5 years.Assume annual car payments of $6000 for 4 years and an interest rate of 9% per year. What initial principal or PW will this repay?A company makes fixed annual payments to a sinking fund to replace equipment in five years’ time. The equipment is valued at £100,000 and interest rates are 12%. How much should each payment be? How would these payments change if the company could put an initial £10,000 into the fund?