QUESTION 1 AFBF Tech Limited plans to develop a new device for health monitoring. To fund for the development of this project, a loan worth of RM500, 000 has been made from MXX Bank. The interest charges by MXX Bank vary depending on the term of the loan. Given the rate of interest in Table 1. Term of the loan (t) 3 years Interest rate 10% compounded charged (%) monthly 5 years 6.6% compounded every 2 months 8 years 4.8% compounded quarterly Table 1 a) Advice which is the best term the company should sign for the loan by finding the instalment payment and the interest. Justify your answer. b) Hence, the company plans to settle all the outstanding arrears in one payment after 25 months the device being released into the market. How much is the payment will be according to the chosen term in (a)? c) Based on chosen term in (a), how much should the company pay on the tenth payment to settle the outstanding arrears if the company fails to pay the first ninth payment?

QUESTION 1 AFBF Tech Limited plans to develop a new device for health monitoring. To fund for the development of this project, a loan worth of RM500, 000 has been made from MXX Bank. The interest charges by MXX Bank vary depending on the term of the loan. Given the rate of interest in Table 1. Term of the loan (t) 3 years Interest rate 10% compounded charged (%) monthly 5 years 6.6% compounded every 2 months 8 years 4.8% compounded quarterly Table 1 a) Advice which is the best term the company should sign for the loan by finding the instalment payment and the interest. Justify your answer. b) Hence, the company plans to settle all the outstanding arrears in one payment after 25 months the device being released into the market. How much is the payment will be according to the chosen term in (a)? c) Based on chosen term in (a), how much should the company pay on the tenth payment to settle the outstanding arrears if the company fails to pay the first ninth payment?

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 business loan of P1,000,000 is to be repaid in full after 5 years. What is the amount to be paid if the effective rate of interest is 10% a. 1,150,165 b. 1,165,000 c. 1,165,526 d. 1,610,510
Problem 6. Including loan The following investment alternatives are being evaluated. Assuming that there is only $30,000 available and the surplus will be acquired through a loan at 5.5% annual effective interest payable in annual payments over 4 years. Determine which alternative should be selected. Perform the analysis using the Present Value, Equivalent Annuity and IRR Methods. Use a MARR = 7% Year A B 0 -25000 -46000 1 7460 16640 2 7460 16640 3 7460 16640 4 6500 12600 5 6000 10600
f. A firm borrows RM36,000 from the bank at 8% compounded annually to purchase some new machinery. This loan is to be repaid in equal installment at the end of each year over the next 4 years. Required: 1 2 i. Yea r 3 4 ii. How large is the annual payment? Complete the following amortization schedule: Annuity Payment Beginning Amount Interest Repayment of Ending Principal Balance
(engineering economic) The contractor owner applied for a loan to the bank and was approved for a loan of Rp. 1 billion with 10% interest per year with a payback period of 10 years. Refunds are paid in uniform annual installments. The borrower always pays the right installments so that after the fifth year installment is paid, the bank provides an additional loan of Rp. 500 million and reduce interest to 8% per annum. a. Draw the cash flow of the loan and its repayments over 10 years b. Determine the amount of installments each year for the first 5 years and the last 5 years
Answer the Situation below correctly show your complete solution.I already provided the answer I just need the SOLUTION.( Annuities )A loan of 30 000.00 Php is to be paid monthly for 5 years that will start at the end of 4 years . If converted monthly at 12 % , how much is the monthly payment ?a . The type of annuity illustrated in the problem is _________________.b. The total number of payments is ______.c . The number of conversion period in the period deferral is ___________________.d. The interest rate per period is _________.e . The present value of the loan is_______. Answers: a. Deferred Annuity; b. 60; c. 47; d. 0.01; e. 30 000.00 Php
mplete 6. Albert secured a loan today worth Php350,000.00 at 5.5% interest compounded monthly to finance a construction project today. The loan is settled by making equal monthly payments at the end of each month for one year. Construct a loan amortization schedule illustrating the settlement of the loan. n wiuon gbove aad
A construction company plans to accelerate the payments on an equipment loan as production increases. The initial payment is $10,000 per year and the plan is to increase the payment, beginning in year 2, by an additional $1,000 each year through year 10. Determine the equivalent annual payment if the loan interest rate is 12%. Select one: O a. $13,585 Ob. $12,650 Oc. $18,650 O d. $15,485 Next page GRO3-07.06.2021 Time:14.30 Jump to... u Rabiu (Log out) N 204 14:43 AK A O 4x O ENG 24/06/2021
Calculate the principal portion of the second payment on the required on an amortized loan annual interest rate of 8.25% for 20 years. finance the purchase of a new home priced at $99,757.57 assuming the O A. $165.30 O B. $174.17 OC. $175.30 O D. $164.17 Click to select your answer. tUs /- MacBook Air 888 F4 14 F7 F1 F3 FS F6 II 4) F9 F10 F11 @ 2$ 4 23 & 2 6. 0. R Y P. S D F H. J K B alt command +
Develop an amortization schedule for the loan described. (Round your answers to the nearest cent.) $200,000 for 3 years at 9% compounded annually Period Payment Interest Balance Reduction Unpaid Balance $200,000 $ 200,000 $1500 $ 195,140.05X 2 $ 200,000 $ 1500 3. $ 200,000 $0.00
39 Identify the correct formula to calculate the payment for a loan, where the rate is 6%, the loan amount is $2,000, and payments will be made monthly for six years. =PMT(6,6*12,2000) =PMT(.06/12,6*12,-2000) once=1/1b1435-b60f-40fb-ad57-d89084c2075a&launchCode=qe8mtdEeV5pWjPP2nq... =PMT(.06,6*12,-2000) =PMT(.06,6*12,2000)
You are offered loans from two competing lenders on the purchase of a $6.5 million property for a 5-year term (25-year amortization). Assume that payments are made ANNUALLY. The terms are outlined below: Loan 1 Loan 2 LTV 62.5% 70.0% Rate 6.375% 6.875% Fees (total) $55,000 $77,000 Calculate the incremental cost for the extra funds provided by loan 2. Hint: Remember that the loan will not be outstanding a full 25 years. ENTER YOUR ANSWER AS A DECIMAL WITH 4 PLACES. IF YOUR ANSWER
Manual Solving A man has a loan of 500,000 for 10 years at 6.5% annually with annual payments. His payments are 45,000 for the first 5 years and X for the next 5 years. Find X. Construct the amortization schedule for this loan.*

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