I1239,0U Question 6 Mzomuhle takes out a personal loan of R439 200,00 to help finance the building of his holiday house. The terms of his loan specify equal three-monthly repayments over five years, with 13,2% interest per annum, compounded quarterly. The first payment is made three months after the loan was taken out. This is represented by the following time line: 1 4. 18 19 20 quarters 1 3 12 54 55 56 57 58 59 60 months P = R439 200,00 @13,2% per annum, compounded quarterly First find the size of the three-monthly payments. Then considering the amortisation schedule, find the total interest charged over the first year of repayments. [1] R12871,85 [2] R54 766,00 R66 618,00 (4] R167720,00 3

I1239,0U Question 6 Mzomuhle takes out a personal loan of R439 200,00 to help finance the building of his holiday house. The terms of his loan specify equal three-monthly repayments over five years, with 13,2% interest per annum, compounded quarterly. The first payment is made three months after the loan was taken out. This is represented by the following time line: 1 4. 18 19 20 quarters 1 3 12 54 55 56 57 58 59 60 months P = R439 200,00 @13,2% per annum, compounded quarterly First find the size of the three-monthly payments. Then considering the amortisation schedule, find the total interest charged over the first year of repayments. [1] R12871,85 [2] R54 766,00 R66 618,00 (4] R167720,00 3

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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6. Masuku agrees to pay R250 at the beginning of each year for 15 years. If money is worth 43% p.a. Find the value of the remaining payments just before he makes the sixth payment. A. R2 067.20 B. R2 067 C. D. E. R2 067.11 2 067.20 R2 067 I
Question#4: A person bought a car for JD20,000 he payed JDS,000 immediately while the remaining amount will be repaid at 4 equal annual payments, at an annual interest rate of 12%, calculate: 1. The value of each installment. 2. If he paid the first two installments but he could not pay the rest of the amount on time agreed upon, so his penalty was to repay the remaining amount in four equal installments, starting in the fifth years after the purchase of the car, find the value of the new instaliment I need the answer as soon as possible please
QUESTION 15 Ann buys a property that costs $1,000,000. She finances the purchase with a 70% LTV mortgage. She gets a 20 year interest only fixed rate mortgage at an annual interest rate of 5%, with annual compounding and annual payments. Ann must pay 2 points upfront in mortgage closing costs (as a % of the loan amount). The loan has a 5/4/3/2/1 prepayment penalty structure (she must pay a 5% penalty if she prepays at any time in the first year, 4% penalty in the second year, etc). Suppose Ann will sell the property during year 3, after she makes the 3rd year's mortgage payment and pays off the balance when she sells. What is Ann's annualized IRR for the loan? A. 5.74% B. 6.69% C. 5.10% D. 5.00%
Answer no. 6 onlyDetermine R.
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ANSWER 16 and 17 only
13Assume you plan to borrow $400,000 from your bank to buy a home. The bank offers: • a 5-year fixed rate of 6.05%, compounded monthly. • a 3-year fixed rate of 5.75%, compounded monthly. If you choose to repay the borrowing in equal installments monthly over a 20 years, what would be the difference between your monthly payments at the two different APRs? a. $89.32 b. $68.94 c. $26.98 d. $154.58 14You expect that the interest rate will decrease in the near future, therefore you eventually choose the 3-year fixed rate. Then, what will be your mortgage balance after 3 years? a. $321,598.59 b. $452,321.21 c. $365,056.12 d. $379,325.89 15Three years passed, it's time to renew your mortgage. Upon your renewal, your bank is now offering a new 3-year fixed rate of 4.5%, what would be your monthly repayment amount after renewal? a. 2825.32 b. 2598.54 c. 1965.21 d. 2563.60
Annuities use formula for annuities Jose regularly deposits a certain amount K in a bank account which credits compound interest:If Jose, instead, intends to pay K at the beginning of each quarter for 4 years, how much should be this periodic payment if the sum of present values of all these payments is 15,000 at a nominal interest rate of 8% compoundedquarterly?
Question Two ii. ii. Ms. Duke is borrowing 12,000 at a compound annual interest rate of 17%. Determine the annual payment to amortize the loan, if she is offered 7 years. At 8% compounded annually, how long will it take 750 to double? A friend plans to buy a big-screen TV/entertainment system and can afford to set aside 1,320 toward the purchase today. If your friend can earn 15%, compounded yearly, how much can your friend spend in four years on the purchase? What would you pay to own a guaranteed income of C1500 per year to be received forever, if interest rates are 14%? At what rate must 500 be compounded annually for it to grow to ¢716.40 in 5 years? Explain the concept of time value of money in line with the financial manager" corporate objective S
Answer no. 5 onlyDetermine P.
Question 5 of 6 Leah received a 25 year loan of $285,000 to purchase a house. The interest rate on the loan was 3.30% compounded semi-annually. a. What is the size of the monthly loan payment? $0.00 Round to the nearest cent b. What is the balance of the loan at the end of year 2? Open with $0.00 Round to the nearest cent o years c. By how much will the amortization period shorten if Leah makes an extra payment of $30,000 at the end of year 2? 0 months

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