Marcy borrowed P1M in a bank that charged 18% compounded monthly and agreed to make monthly payments for 3 years. Unfortunately she was unable to make any payments. At the end of the first year, the bank restructured the loan and required her to pay the amount due for one year immediately and the remaining balance was to be paid in two equal annual payments at the end of 2nd and 3rd year. What are the amounts of payments she made?

Marcy borrowed P1M in a bank that charged 18% compounded monthly and agreed to make monthly payments for 3 years. Unfortunately she was unable to make any payments. At the end of the first year, the bank restructured the loan and required her to pay the amount due for one year immediately and the remaining balance was to be paid in two equal annual payments at the end of 2nd and 3rd year. What are the amounts of payments she made?

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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Similar questions

Heather deposited $1, 700 at her local credit union in a savings account at the rate of 9.8% paid as simple interest. She will earn interest once a year for the next 13 years. If she were to make no additional deposits or withdrawals, how much money would the credit union owe Heather in 13 years?
Cathy borrowed a student loan for $700 and agreed to pay off the loan $740 one month later. what is the annual interest rate? assume it's computed using simple intrest
Rih took out a 4-year amortized loan for $15,000 at 10% to pay her tuition at a music conservatory. After 1 year, she refinanced the unpaid balance of $11,791 at a 5% interest rate. Find the monthly payments on the new loan; and the total amount saved on interest by refinancing. The monthly payments on the original loan are $ (Type an integer or a decimal.) The monthly payments on the new loan are $ (Round to the nearest cent as needed.) The total amount saved on interest by refinancing is $
Theodora received an 8 year PLUS Loan of $17, 000 to attend law school for her last 2 years. If the current interest rate is 8.62% and she starts her repayments 1 year after graduation, what are her monthly payments (in dollars)? (See Example 5 in this section. Assume the loan has a deferred payment plan.
Diane received a $1200 bonus. She decided to invest it in a 2-year certificate of deposit (CD) with an annual interest rate of 1.13% compounded monthly. Answer the questions below. Do not round any intermediate computations, and round your final answers to the nearest cent. If necessary, refer to the list of financial formulas. (a) Assuming no withdrawals are made, how much money is in Diane's account after 2 years? (b) How much interest is earned on Diane's investment after 2 years?
Kim borrowed money from a bank to buy a fishing boat. He took out a personal, amortized loan for $18,500 , at an interest rate of 5.9%, with monthly payments for a term of 6 years Find Joe's monthly payment. (b) If Joe pays the monthly payment each month for the full term, find his total amount to repay the loan. (c) If Joe pays the monthly payment each month for the full term, find the total amount of interest he will pay. Please answer all subparts with explanation. I will really upvote. Thanks
Angelas bank gave her a 3-year add on interest loan for 7,420 to pay for new equipment for her antiques restoration business. The annual interest rate is 11.92% . How much interest will she pay? What are her monthly payments?
Dana has made a down payment of $100,000 on a recent home purchase for $300,000. She was able to obtain bank financing and pays a fixed annual rate of 6 percent on her 30-year mortgage. If she makes steady, fixed monthly payments, what loan balance will remain after the 47th payment?
Jessica purchases a house for $323,000 and takes a mortgage for the full amount. Her mortgage charges 6.75% per year and interest is compounded monthly. She will repay the loan over 25 years with equal monthly payments. a) What is her monthly payment amount? b) How much of the 8th payment would be applied toward interest? c) How much would be the payoff amount if the mortgage is to be paid at the end of year 2 (i.e., before the 24th payment is made)?
Suppose Heather borrows $3000 at an interest rate of 11% compounded each year. Assume that no payments are made on the loan. Follow the instructions below. Do not do any rounding. (a) Find the amount owed at the end of 1 year. (b) Find the amount owed at the end of 2 years.
Mbalenhle agreed to settle a debt by making 12 quarterly payments of R300 each. If she failed to make the first 3 payments, what payment when the next is due will cancel her debt, if money is worth 8% p.a. compounded quarterly?
A woman borrows $3000 at %9 compounded monthly, which is to be amortized over 3 years in equal monthly payments. For tax purposes, she needs to know the amount of interest paid during each year of the loan. Find the interest paid during the first year, the second year, and the third year of the loan. (Hint: Find the unpaid balance after 12 payments and after 24 payments. Also see example in your notes.)

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