How much was the amount of the original loan? Regular Payment Rate of Compound Interest per Year 5.4% $1575 every 6 months a. $8445.09 b. $14444.94 a C. d. Compounding Period semi-annual $17076.01 $24 143.61 Time 6 years

How much was the amount of the original loan? Regular Payment Rate of Compound Interest per Year 5.4% $1575 every 6 months a. $8445.09 b. $14444.94 a C. d. Compounding Period semi-annual $17076.01 $24 143.61 Time 6 years

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

See similar textbooks

Related questions

Q: Complete an amortization schedule for a $34,000 loan to be repaid in equal installments at the end…

A: Amortization means writing off of loan at regular and equal payment through out the loan period.…

Q: omplete an amortization schedule for a $16,000 loan to be repaid in equal installments at the end of…

A: Amortization Schedules shows series of payment made to discharge loan with calculation of interest…

Q: Find the amount due if $200 is borrowed for 4 months at 17% simple interest

A: Amount due refers to the net amount that needs to be either paid by the borrower to the lender or to…

Q: A loan of $2982 is repaid in three years. Find the amount of interest paid on the loan if it is…

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

Q: A $106,000 mortgage loan has a 20-year amortization. a. Calculate the monthly payment at interest…

A: A mortgage loan is a type of loan used to finance the purchase of a property, typically a home. The…

Q: Principal Compounded quarterly Rate Time The principal represents an amount of money deposited in a…

A: Answer: Calculation of the amount of money in the account after the given number of years: Formula,…

Q: Determine the principal remaining after 36 monthly payments have been made for a 5-year loan of…

A: Loan (L) = P 40000 n = 5 years = 60 months Interest rate = 8% quarterly compounded Let r = Monthly…

Q: Periodic deposit-$? at the end of the year Rate-5% compounded annually Time-19 years Financial…

A: Financial goal The goals that an individual or business sets when dealing with money are called…

Q: Find the amortization table for a $13,000 loan amortized in five annual payments if the interest…

A: Amortization refers to the practice of distributing the cost of a loan or an intangible asset over a…

Q: b d Payment and Time in years frequency (PMT) $252.92 at the beginning of the quarter $3,562.47 per…

A: Present value is a financial concept used to determine the current worth of future cash flows or…

Q: A payment of $400 was made at the end of each year for five years into a savings account. The…

A: Principal amount=Payment per year×Number of years=$400×5=$2,000

Q: Jaspreet received a 15 year loan of $300,000 to purchase a house. The interest rate on the loan was…

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

Q: What is the difference on the total interest payments between a 25 year 5.65% fixed rate fully…

A: The objective of the question is to find the difference in total interest payments between a 25-year…

Q: 1.1. Find the annuity and interest Periodic Deposit- $2000 at the end of every three months…

A: Two different unrelated problems appear on the screen. Though they are different otherwise, the…

Q: 5. How much interest must be paid on a loan of $4300 at 10% compounded semi- annually for 4 years?…

A: Formula: P x [ 1 + ( R / N )NT P = Principal R = Rate of interest N = Number of compounding periods…

Q: A loan of $25,250.00 at 4.00% compounded semi-annually is to be repaid with payments at the end of…

A: Payment per period can be calculated using PMT function in excel.PMT(rate, nper, pv, [fv],…

Q: A fully amortizing mortgage loan is made for $100,000 for 15 years. The interest rate is 6 percent…

A: Loan installment is that which is paid by borrower to lender for a specified period of time. This…

Q: Amortization schedule Set up an amortization schedule for a $25,000 loan to be repaid in equal…

A: The table that shows the complete payments until the loan amount is totally paid off is known as…

Q: How much will it cost to purchase an ordinary annuity delivering semiannual payments of $2000 for…

A: Present Value can be calculated using PV function in excel PV (rate, nper, pmt, [Fv], [type])…

Q: Find the simple interest paid on a $510 loan at 7.8% annual interest for 19 months.

A: Simple interest can be calculated as: = Principal * Rate * Months / 12

Q: Annual % rate: 5.9% Amt of Mort: $180,000 Unpaid Balance: Monthly Payent: $1067.65 Number of Monthly…

A: Loans are paid by equal monthly payments and the unpaid balance is the present value of payments…

Q: In an amortization table for a four-year loan of $45,280, given an interest rate of 11%, how much…

A: N = 4 years Loan = $45,280 Interest Rate = 11% Principal payment in second year = ?

Q: Determine monthly installment loan p 53000 r 6.5 % Payment in a year 12 t 4 years

A: The question gives the following information:

Q: Find the amount of the payment necessary to amortize each of the given loans. 53. $32,000 at 8.4%…

A: Time value of money :— According to this concept, value of money in present day is greater than the…

Q: Single-payment loan repaymentA person borrows $200 to be repaid in 8 years with 14% annually…

A: Compound interest happens when formerly earned interest is increased to the principle investment…

Q: Determine the monthly payment for the installment loan. Amount financed (P): $900 Annual Percentage…

A: P = $900 R = 0.075 or 7.5% Monthly rate (i) = 0.00625 (i.e. 0.075 / 12) Monthly period (p) = 36…

Q: Amount of mortgage Annual interest rate Years in mortgage Monthly payment $86,000 6.00% 25…

A: A borrower is required to pay the lender the interest and the original amount by paying regular…

Q: Calculate the amount obtained for the following loans a) RM 2,500 with interest 7.5% compounded…

A: FUTURE VALUE IS THE VALUE OF PRESENT AMOUNT COMPOUNDED TO FUTURE DATE formula: Fv =PV×1+RMM×N where,…

Q: a b C d e Amortization Payment Payment Period every year every 3 months every month every 6 months…

A: The amortized payment can be calculated using the present value of loan, payment frequency and…

Q: A loan of $20,000 is paid off with installments of $1400 made at the end of each six months. The…

A: Given Information : Loan amount = $20,000 Semi - annual Payment =$1,400 Interest rate = 7%

Q: Scott's student loan of $22,500 at 3.42% compounded quarterly was amortized over 3 years with…

A: A loan is a financial arrangement in which one or more people, companies, or other entities lend…

Q: The interest rate on a $65,000 loan is 9.8% compounded semiannually. Quarterly payments will pay off…

A: Hey, since there are multiple sub-part questions posted, we will answer the first three questions.…

Q: How much total principal is repaid between the 1st and 7th payment interval of a 4.5-year loan for…

A: Here, Time Period of Loan is 4.5 years Loan Amount (PV) is $4,887 Interest Rate on Loan is 7.4%…

Q: THANSKSSS FOR THE HELP

A: The objective of the question is to find out how much principal is owing at the end of two years for…

Q: loan of $37,100.00 at 6.00% compounded semi-annually is to be repaid with payments at the end of…

A: The objective of the question is to calculate the size of the periodic payment and the total…

Q: A loan of $11500 is to be repaid by 10 annual payments beginning 6 months from the date of the loan.…

A: According to the financial theory known as the time value of money, money has more value now than it…

Q: at the end of each month Rate-6.25% compounded monthly Time-45 years Financial Goal-$1,500,000 a.…

A: Periodic deposit refer to the payment that is made in form of equal deposits up to a specified…

Q: Loan payment Determine the equal, annual, end-of-year payment required each year over the life of…

A: The annuity payments that needs to be paid by the borrower over the loan term for each year at given…

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Given Information:

VIEW

Calculations are as follow:

VIEW

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Consider a loan of $2.5 million that is paid quarterly over a period of 10 years. Calculate the dollar amount of interest and loan principal repaid corresponding to each payment if the interest rate is 9% per year, compounded quarterly. What is the 5th Quarter Interest and also the 5th Quarter Principal Repayment respectively O a $157,274.15 and $232,276.07 O b. $97,158.12 and $95,032.24 O c. $46,919.62 and $32,752.85 O d. $52,601.74 and $42,841.70
A loan of $25,000 at an annual rate of 14% is repayable through 5 annual year-end payments. The annual payment amount is close to: Answer A. $7,282 B. $5,000 C. $3,500 D. $8156
None
Question Quarter-end payments of $1,470 are made for 9 years to settle a loan of $37,120. What is the effective interest rate charged on this loan?
Loan Repayment A loan of $10,000 is to beamortized with quarterly payments over 4 years. Ifthe interest on the loan is 8% per year, paid on theunpaid balance,a. What is the interest rate charged each quarter onthe unpaid balance? b. How many payments are made to repay the loan?c. What payment is required quarterly to amortizethe loan?
A loan of $10,000 with interest at 6.72% compound quarterly is repaid five payments of 950 made at the end of every six months a)how many payments will be required to amortize the loan b)if the loan is repaid in full after six years what is the payout figure c)if paid out what is the total cost of the loan?
The following is an amortization schedule for a loan of $5000 to be repaid over two years at 7% compounded semiannually (depicted below in the table). Find the value of A, B, C, and D.
A loan of $34, 200.00 at 5.50% compounded semi - annually is to be repaid with payments at the end of every 6 months. The loan was settled in 5 years. a. Calculate the size of the periodic payment. $3, 645.25 $4,537.24 $ 3,958.30 $4,341.38 b. Calculate the total interest paid. $5, 383.00 $39,583.00 $1,424.70 $9,341.30
Find interest charged on a loan of P8,275 for 3 years at 11% compounded quarterly
Prepare an amortization schedule for a five year loan of $58,500. The interest rate is 6% per year and the loan cost for equal annual payments. How much interest is paid in the third year? how much total interest is paid over the life of the loan? Loan amount $ Interest rate Loan term Output area: 58,500 6% 5 Loan payment $13,887.69 Year Beginning balance 1 $ 58,500.00 Total payment Interest paid Principal paid Ending balance $ 13,887.69 $ 3,510.00 $ 10,377.69 $ 48,122.31 2 3 4 5 Total interest paid over life of loan
Monthly Payments (Necessary to amortize a loan of $1,000) Interest 5 10 15 20 25 30 35 40 Rate (%) Years Years Years Years Years Years Years Years 3.50 18.19 9.89 7.15 5.80 5.01 4.49 4.13 3.87 3.75 18.30 10.01 7.27 5.93 5.14 4.63 4.28 4.03 4.00 18.42 10.12 7.40 6.06 5.28 4.77 4.43 4.18 4.25 18.53 10.24 7.52 6.19 5.42 4.92 4.58 4.34 4.50 18.64 10.36 7.65 6.33 5.56 5.07 4.73 4.50 4.75 18.76 10.48 7.78 6.46 5.70 5.22 4.89 4.66 5.00 18.87 10.61 7.91 6.60 5.85 5.37 5.05 4.82 5.25 18.99 10.73 8.04 6.74 5.99 5.52 5.21 4.99 5.50 19.10 10.85 8.17 6.88 6.14 5.68 5.37 5.16 5.75 19.22 10.98 8.30 7.02 6.29 5.84 5.54 5.33 6.00 19.33 11.10 8.44 7.16 6.44 6.00 5.70 5.50 6.25 19.45 11.23 8.57 7.31 6.60 6.16 5.87 5.68 6.50 19.57 11.35 8.71 7.46 6.75 6.32 6.04 5.85 6.75 19.68 11.48 8.85 7.6 6.91 6.49 6.21 6.03 7.00 19.80 11.61 8.99 7.75 7.07 6.65 6.39 6.21 7.25 19.92 11.74 9.13 7.90 7.23 6.82 6.56 6.40 7.50 20.04 11.87 9.27 8.06 7.39 6.99 6.74 6.58 7.75 20.16 12.00 9.41 8.21 7.55 7.16 6.92 6.77 8.00…

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS