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EBK CONTEMPORARY FINANCIAL MANAGEMENT

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter16: Working Capital Policy And Short-term Financing

Section: Chapter Questions

Problem 14P

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Problem #5: A loan of $55,000 is paid off in 36 payments at the end of each month in the following way:
Payments of $1375 are made at the end of the month for the first 12 months.
Payments of $1375 + x are made at the end of the month for the second 12 months.
Payments of $1375 + 2x are made at the end of the month for the last 12 months.
What should x be if the nominal monthly rate is 10.4%?
Problem #5:
53625.00
Answer correct to 2 decimals.

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Problem #5: A loan of $49,000 is paid off in 36 payments at the end of each month in the following way: Payments of $1225 are made at the end of the month for the first 12 months. Payments of $1225 + x are made at the end of the month for the second 12 months. Payments of $1225 + 2x are made at the end of the month for the last 12 months. What should x be if the nominal monthly rate is 11.8%?
5: A loan of $40,000 is paid off in 36 payments at the end of each month in the following way: Payments of $1000 are made at the end of the month for the first 12 months. Payments of $1000 + x are made at the end of the month for the second 12 months. Payments of $1000 + 2x are made at the end of the month for the last 12 months. What should x be if the nominal monthly rate is 8%?
Note:- please dont use pen and paper
PROBLEMS 1. What is the annual rate of interest if P265 is earned in four months on an investment of P15,000? Ans. 5.3% 2. A loan of P2,000 is made for a period of 13 months, from January 1 to January 31 the following year, at a simple interest rate of 20%. What future amount is due at the end of the loan period? Ans. P2.433.33 3. If you borrow money from your friend with simple interest of 12%, find the present worth of P20,000, which is due at the end of nine months. Ans. P18.348.62
Task: A loan of £1800 is to be repaid with 12 equal monthly instalments. The nominal rate of interest i(12) for the transaction is 6% per annum convertible 12-thly. Find the amount of each monthly repayment, assuming that payments are made at the end of each month, at the beginning of each month. Answer: Let the unit of time be months. Then the (effective = nominal) rate of interest per unit time is (blank). Let the monthly repayment in £ be X. Then (blank) = X (v + v^2 + ... + v^12) = X a12] We calculate the present value of annuity: (blank) Thus X = (blank)
Aa.63.
Finance You have just taken a car loan of $15,000. The loan is for 48 months at an annual interest rate of 15% (which the bank translates to a monthly rate of 15%/12 = 1.25%). The 48 payments (to be made at the end of each of the next 48 months) are all equal. Calculate the monthly payment on the loan. In a loan table calculate, for each month, the principal remaining on the loan at the beginning of the month and the split of that month’s payment between interest and repayment of principal. Show that the principal at the beginning of each month is the present value of the remaining loan payments at the loan interest rate (use either NPV or the PV functions).
Imagine a loan of $420,000. The loan is to be repaid in six years (i.e., last payment at the end of month 72). If the APR of this loan is 7.80%, what will be your monthly payments? $7,724 $7,643 $7,451 $7,323 $7,548
please complete the table below for End of Months: 2 , 13, 24, and 36
An industrial bank will loan you $10,500 for two years to buy miscellaneous equipment for your firm. The loan must be repaid in equal monthly payments. The annual interest rate on the loan is 11.5% of the unpaid balance. How much will the monthly payments be? Numeric Response
SportZ has negotiated a loan of $25 000 with interest at 7.6% per annum, to be paid as month-end payments of $2200.00 over the next year. Construct a loan amortization schedule to answer the following questions. i. How much interest is paid over the first two months? ii. How much of the principal is paid by the end of the first two months? iti. How much interest is paid over the term of the loan? iv. What is the amount of the final payment?]
am. 25.

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