Lowlife Company defaulted on a $200,000 loan that was due on December 31, 2024. The bank has agreed to allow Lowlife to repay the $200,000 by making a series of equal annual payments beginning on December 31, 2025. Required: 1. Calculate the required annual payment of the bank's Interest rate is 10% and four payments are to be made. 2. Calculate the required annual payment if the bank's Interest rate is 8% and five payments are to be made. 3. If the bank's Interest rate is 10%, how many annual payments of $28,156 would be required to repay the debt? 4. If three payments of $72,070 are to be made, what interest rate is the bank charging Lowlife? Note: For all requirements, Use tables, Excel, or a financial calculator. (FV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Calculate the required annual payment if the bank's interest rate is 10% and four payments are to be made. Note: Round your final answers to nearest whole dollar amount.

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
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Lowlife Company defaulted on a $200,000 loan that was due on December 31, 2024. The bank has agreed to allow Lowlife to repay
the $200,000 by making a series of equal annual payments beginning on December 31, 2025.
Required:
1. Calculate the required annual payment of the bank's Interest rate is 10% and four payments are to be made.
2. Calculate the required annual payment of the bank's Interest rate is 8% and five payments are to be made.
3. If the bank's Interest rate is 10%, how many annual payments of $28,156 would be required to repay the debt?
4. If three payments of $72,070 are to be made, what interest rate is the bank charging Lowlife?
Note: For all requirements, Use tables, Excel, or a financial calculator. (FV of $1. PV of $1. FVA of $1. PVA of $1, FVAD of $1 and PVAD
of $1)
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Required 3 Required 4
Calculate the required annual payment if the bank's interest rate is 10% and four payments are to be made.
Note: Round your final answers to nearest whole dollar amount.
Time values are based on:
Table, Excel, or calculator function
Present Value:
Annual Installment:
n=
< Required 1
Required 2 >
Transcribed Image Text:Lowlife Company defaulted on a $200,000 loan that was due on December 31, 2024. The bank has agreed to allow Lowlife to repay the $200,000 by making a series of equal annual payments beginning on December 31, 2025. Required: 1. Calculate the required annual payment of the bank's Interest rate is 10% and four payments are to be made. 2. Calculate the required annual payment of the bank's Interest rate is 8% and five payments are to be made. 3. If the bank's Interest rate is 10%, how many annual payments of $28,156 would be required to repay the debt? 4. If three payments of $72,070 are to be made, what interest rate is the bank charging Lowlife? Note: For all requirements, Use tables, Excel, or a financial calculator. (FV of $1. PV of $1. FVA of $1. PVA of $1, FVAD of $1 and PVAD of $1) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Calculate the required annual payment if the bank's interest rate is 10% and four payments are to be made. Note: Round your final answers to nearest whole dollar amount. Time values are based on: Table, Excel, or calculator function Present Value: Annual Installment: n= < Required 1 Required 2 >
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