P2,000 loan was originally made at 8% simple interest for 4 years. At the end of this period, the loan was extended for three years without the interest being paid, this time at a rate of 10% compounded semi-annually. How much should the borrower pay at the end of 7 years?

P2,000 loan was originally made at 8% simple interest for 4 years. At the end of this period, the loan was extended for three years without the interest being paid, this time at a rate of 10% compounded semi-annually. How much should the borrower pay at the end of 7 years?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 19P

See similar textbooks

Similar questions

If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?
A P2000 loan was originally made at 8% simple interest for 6years. At the end of this period the loan was extended for 3years, without the interest being paid, but the new interest rate was made 10% compounded quarterly. How much should the borrower pay at the end of the period? раy
1. A P3000 loan was originally made at 8% simple interest for 4 years. At the end of this period the loan was extended 3 years, without the interest for 4years. At the end of this interest rate was made 10% compounded semi- annually. a. How much should the borrower pay at the first 4 years? b. How much should the borrower pay at the end of 7 years?
A loan of RM200,000, paid annually, is made for a term of 30 years at an effective interest rate of 4.5%. The lender allows only annual year-end interest payments made until at the end of 30 years. In order to pay the loan of RM200,000 at the end of 30 years, the borrower will make a payment of R at the end of first year, and will increase his payments of R arithmetically for the subsequent years, into a sinking fund earning 6% interest rate per year. (a) Develop a sales illustration of this loan scheme which consists of the following:- Part 1: parameters of input (loan, loan interest rate, loan period, rate of investment return). (1) Part 2:- output - table schedule which consists of sinking fund deposit, total sinking fund deposit, sinking fund interest, principal repayment in sinking fund and outstanding balance of the loan.
A loan of $ 1,000 is being paid with annuities of $ 80 at an interest rate of 5. One year after the loan is actually paid, if after 7 payments it is agreed that the rest of the debt will be covered with two One-time equal payments at the end of year 9 and 11. How much are these payments so that the debt is paid off entirely?
An individual borrows £15,000 to be repaid in 10 years with monthly payments at the end of each month. The initial interest rate applied to the loan is 3% p.a. effective. After 5 years the terms of the loan are modified: the interest rate increases to 4% p.a. effective (the date of the final payment instead remains unchanged). Find the revised monthly payment P2.
A loan of £10,000 is repaid in 5 years with quarterly payments made in arrears. The initial payment is of amount P and subsequent payments increase at the end of every year by 2% p.a. compound. The interest rate is 6% p.a. effective. (a) Find the value of P. (b) What is the outstanding balance at the start of the final year? (c) What is the interest component of the first payment in the final year?
A Php 2,000 loan was originally made at 8% simple interest for 4 years. At the end of this period the loan was extended for 3 years, without the interest being paid, but the new interest rate was made 10% compounded semi-annually. How much should the borrower pay at the end of 7 years? . engineering econ
You are borrowing a loan from Sohar Bank of 14832 OMR at a compound annual Interest rate of 1%. Question: Amortize the loan if annual payments are made for 5 years.
A lender makes a loan of $100,000 at a 6% interest rate for 25 years with monthly payments. The lender will require an origination fee of $1,000 and will also discount the loan by some amount. Suppose the lender discounts the loan by the amount calculated in the last question. What is the annual percentage rate (APR) on this loan? a. 5.45% b. 6.00% c. 6.11% d.6.20% e. 6.65% Assume the borrower repays the loan after 8 years. What is the effective borrowing cost (EBC) on this loan? a. 6.10 b. 6.17 c. 6.33 d. 6.50 e. 6.84
A present obligation amounting to ₱150,000 is to be repaid for 4 years at a rate of 12% per year. The borrower has three options to repay the money, what would you recommend? a. Pay the interest and principal in one payment at the end of the period. b. Pay interest due to at the end of each period and the principal at the end of the 4th year. c. Pay 50% of the principal at the end of the first year and 50% at the end of the 4th year. The interest will be paid at each end of the year
A present obligation amounting to ₱150,000 is to be repaid for 4 years at a rate of 12% per year. The borrower has three options to repay the money, what would you recommend? a. Pay the interest and principal in one payment at the end of the period. b. Pay interest due to at the end of each period and the principal at the end of the 4th year. c. Pay 50% of the principal at the end of the first year and 50% at the end of the 4th year. The interest will be paid at each end of the year