i) Find the amount that must be invested at an effective rate of interest of 4% to accumulate Php2000 at the end of three years. ii) Calculate the amount received from a loan that charges interest in advance by 4% and must be repaid by Php2000 at the end of three years. iii) If the present value in problem ii is of Php1778, what is the compound rate of interest in advance applied? iv) a) Solve problem i with duration of 1 year b) With the present value obtained in a), Find the rate of compound discount equivalent to i=4 %.

Q: A loan 1000 is repaid by equal annual amounts of principal for 10 years and annual interest of 7% on…

A: Equal installment  = Loan Amount / present value annuity Factor @rate of interest for life

Q: 1. You are offered a current loan of 8,000 (in million rupiah) but must make a return during 4 years…

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: The contractor owner applied for a loan to the bank and was approved for a loan of Rp. 1 billion…

A: Initial Loan = 1,000,000,000 Interest Rate = 10% Total Time Period = 10 years

Q: A property has a FMV of $7,500,000. If the property owner can only secure a loan with an LTV of 70%,…

A: Variables in the question:FMV=$7,500,000Loan amount=70% of FMV=70% x $7,500,000 =$5,250,000N=30…

Q: 1. Find the amount due at the end of 6 34 yrs if Php5,000 is invested at 12% compounded quarterly.

A: Formula: FV = P (1+r/m)tm where, FV = Future Value P = Principal Investment r = Rate of Interest m =…

Q: An institutional lender is willing to make a loan for $1 million on an office building at a 6…

A: Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the first…

Q: I) II) What is the present value of 10 payments of 1500 riyals each, at a rate of 12%? A loan of…

A: Present value is an estimate of future cash flows discounted at an assumed interest rate over a…

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: A company would like to have $400,000 in 6 years. How much should be invested semiannually into an…

A: Information Provided: Future value = $400,000 Period = 6 years Interest rate = 3.6% compounded…

Q: Outstanding Regular Payment Principal Component of Payment Period Interest Balance Component of…

A: A = Loan amount =              100,000.00 B = Regular Payment =                31,547.08 C =…

Q: ompound intere

A: Loan 1 : Principal Amount ( P1)= Rp. 500 million  Compound Interest on P1 (r1)= 10 %p.a. Time period…

Q: A house costs $148,000. It is to be paid off in exactly ten years, with monthly payments of…

A:

Q: A loan of £4,000 is to be repaid over 5 years by a level annuity payable monthly in arrears. The…

A: To Find: Monthly payment Capital repaid and interest paid in first and lst month Loan repaid after…

Q: ABC Realty sold a piece of land for P250,000. A down payment of P50,000 was made and the remainder…

A: Present Value of Loan = Present Value Factor x Cash Flow during the period

Q: Suppose you wish to borrow Php 20,000,000 to buy a parcel of real estate. The lender is willing to…

A:

Q: 5. What is the yield to maturity on a simple loan for $1 million that requires a repayment of $2…

A: Amount of repayment (A) = $2,000,000 Principal amount taken (P) = $1,000,000 Term (n) = 5 years Let…

Q: Your supervisor has tasked you with evaluating several loans related to a new expansion project.…

A: Solution: Annual payment on Loan = $450,000 / Cumulative PV factor at 8% for 5 periods = $450,000 /…

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.