On July 15, when the prime rate was set at 4.25%, Canadian Footwear took out an operating loan from CIBC for $9,000.00 at prime plus 1.75%. The terms of the loan require a fixed payment of $1,690.00 on the 15th of every month until the loan is repaid. The prime rate climbed by 0.25% on September 21. Complete the repayment schedule below by filling in the appropriate interest rates. Date Jul 15 Aug 15 Sep 15 Sep 21 Oct 15 Nov 15 WEB Dec 15 Jan 15 Balance before Transaction $9,000.00 $7,355.86 $5,703.34 $5,703,34 $4,042.41 $2,373.87 $696.06 Annual Interest Rate * * * * * * * % 31/365 31/365 % 6/365 19% Number Interest Accrued of Days Charged Interest % % 24/365 % Payment (+) or Advance (-) $45.86 $45.86 $1,690.00 $1,644,14 $37.48 $37.48 $1,690.00 $1,652.52 $5.63 $5.63 $0.00 $0.00 $29.07 $1,690.00 $1,660.93 $23.44 31/365 $21.46 $21.46 $1,690.00 $1,668.54 30/365 $12.19 $12.19 $1,690.00 $1,677.81 $3.69 31/365 $3.69 $699.75 $696.06 Principal Amount Balance after Transaction $9,000.00 $7,355.86 $5,703.34 $5,703.34 $4,042.41 $2,373.87 $696.06 $0.00

On July 15, when the prime rate was set at 4.25%, Canadian Footwear took out an operating loan from CIBC for $9,000.00 at prime plus 1.75%. The terms of the loan require a fixed payment of $1,690.00 on the 15th of every month until the loan is repaid. The prime rate climbed by 0.25% on September 21. Complete the repayment schedule below by filling in the appropriate interest rates. Date Jul 15 Aug 15 Sep 15 Sep 21 Oct 15 Nov 15 WEB Dec 15 Jan 15 Balance before Transaction $9,000.00 $7,355.86 $5,703.34 $5,703,34 $4,042.41 $2,373.87 $696.06 Annual Interest Rate * * * * * * * % 31/365 31/365 % 6/365 19% Number Interest Accrued of Days Charged Interest % % 24/365 % Payment (+) or Advance (-) $45.86 $45.86 $1,690.00 $1,644,14 $37.48 $37.48 $1,690.00 $1,652.52 $5.63 $5.63 $0.00 $0.00 $29.07 $1,690.00 $1,660.93 $23.44 31/365 $21.46 $21.46 $1,690.00 $1,668.54 30/365 $12.19 $12.19 $1,690.00 $1,677.81 $3.69 31/365 $3.69 $699.75 $696.06 Principal Amount Balance after Transaction $9,000.00 $7,355.86 $5,703.34 $5,703.34 $4,042.41 $2,373.87 $696.06 $0.00

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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A loan of $1420 taken out on June 7 requires three payments. The first payment is due on July 7. The second payment is twice as large as the first payment and is due on August 19. The final payment, due on November 2, is three times as large as the first payment. If the focal date is June 7, what is the size of each of the three payments at an interest rate of 4.9%? The first payment is $ the second payment is $, and the third payment is $ (Round the final answers to the nearest cent as needed. Round all intermediate values to sx decimal places as needed)
The interest rate on a $115,000 loan is 8.6% compounded semiannually. The monthly payments on the loan are $900. (Round your answers to 2 decimal places.) a. Calculate the interest component of Payment 200. Interest S b. Calculate the principal component of Payment 135. Principal c. Calculate the final payment. Final payment
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A loan of 814, 000 is to be repaid in 20 years by month - end repayments starting in one month. The interest rate is 8.3% p.a. compounded monthly. Calculate the principal paid in Year 6. (between the end of month 60 and the end of month 72). Correct your answer to the nearest cent without any units. (Do not use "$" or ","in your answer. e.g. 12345.67) (Hint: you can use Excel to find the answer.)
A debt of $17,000 is being repaid by 17 equal semiannual payments, with the first payment to be made six months from now. Interest is at the rate of 7% compounded semiannually. However, after two years, the interest rate increases to 8% compounded semiannually. If the debt must be paid off on the original date agreed upon, find the new semiannual payment. The new semiannual payment is $. (Round the final answer to the nearest dollar as needed. Round all intermediate values to six decimal places as needed.)
(Related to Checkpoint 9.1) (Floating-rate loans) The Bensington Glass Company entered into a loan agreement with the firm's bank to finance the firm's working capital. The loan called for a floating rate that was 26 basis points (0.26 percent) over an index based on LIBOR. In addition, the loan adjusted weekly based on the closing value of the index for the previous week and had a maximum annual rate of 2.22 percent and a minimum of 1.74 percent. Calculate the rate of interest for weeks 2 through 10. Date LIBOR Week 1 1.94% Week 2 1.67% Week 3 1.54% Week 4 1.32% Week 5 1.64% Week 6 1.64% Week 7 1.69% Week 8 1.92% Week 9 1.85% The rate of interest for week 2 is___________ %.(Round to two decimal places.)
Leven Corporation negotiated a short-term loan of $685,000. The loan is due in 10 months and carries a 6.86 interest rate. Use simple interest to calculate the total amount of thetioan. If necessary, round the answer to the nearest cent.
On January 1, 2020, Sukuna Bank loaned 4,000,000 to Satori Company. The interest of the loan is 7% payable at every year-end within the next 2 years. The effective rate on the loan is 9%. Data related to the loan: Direct Origination cost 450,000 Origination fees (275,000) Determine the initial carrying amount of the loan.
The Bensington Glass Company entered into a loan agreement with the firm's bank to finance the firm's working capital. The loan called for a floating rate that was 28 basis points (0.28 percent) over an index based on LIBOR. In addition, the loan adjusted weekly based on the closing value of the index for the previous week and had a maximum annual rate of 2.21 percent and a minimum of 1.72 percent. Calculate the rate of interest for weeks 2 through 10. Date LIBOR Week 1 1.95% Week 2 1.61% Week 3 1.47% Week 4 1.39% Week 5 1.62% Week 6 1.65% Week 7 1.67% Week 8 1.86% Week 9 1.95% (Click on the icon in order to copy its contents into a spreadsheet.) Question content area bottom Part 1 The rate of interest for week 2 is enter your response here%. (
6. A loan of $2500 is taken out on May 12. It is to be paid back within a 1-year period with partial payments of $1000 on August 26, $40 on November 19, and $350 on January 9. If the rate of interest is 8%, what is the final balance due on March 20 by the Declining Balance Method? By the Merchant's Rule? Discount Dat-

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