the interest rate om 56,000 loan is 8.4% compounded semiannually. quarterly payments will years calculate the interest component of payment 11 calculate the proncipal component of payment45 pay off the loan in thirteen

Q: Find the effective interest rate for a $1,500 loan for four years compounded semiannually at an…

A: Calculation of Effective Interest Rate:The effective interest rate is 8.16%.Excel Spreadsheet:

Q: On a $600,000 home mortgage loan with a15-year term at 10.5% APR compounded monthly, compute the…

A: The loan amount will be paid on monthly basis which consists of principal and interest. The monthly…

Q: a. Complete an amortization schedule for a $12,000 loan to be repaid in equal installments at the…

A: workings:

Q: A P150,000 Loan bears an interest of 10% compounded quarterly. To be repaid thru installments at the…

A: Annuity due can be defined as a series of equal payments at equal intervals of time, with the…

Q: Auto loan requiers payment of 300 Rials at the end of each interval for 3 years at nominal annual…

A: Hi, please note that there is a typo in the question and the present value of the loan should be…

Q: Complete an amortization schedule for a $34,000 loan to be repaid in equal installments at the end…

A: Amortization means writing off of loan at regular and equal payment through out the loan period.…

Q: For the following annuity due, determine the nominal annual rate of interest. Future Value Present…

A: We need to use RATE function in Excel to calculate interest on annuity. The equation is:…

Q: Find the compound interest and compound amount for a loan of $5,000 at 6% compounded semiannually…

A: Given that the present value is $5000, interest rate is 6% and the time period is 2 years, with the…

Q: Use the appropriate formula to find the amortization payment you would need to make each 3 months at…

A: Amortization payment refers to that payment which is required to be paid to payoff the loan during…

Q: The required end of month payment on a 3-year loan bearing interest at 8.5% compounded monthly is…

A: The original amount of loan is calculated as present value of monthly payments

Q: Prepare the amortization schedule for a fifteen-year loan of $100,000. The APR is 3% and the loan…

A: Before preparation of first, we have to find the monthly installment and the monthly installment is:…

Q: A loan is released today to be paid in 6 equal payments at the end of 6 quarters. If the interest is…

A: The loan is the amount that a borrower receives from the lender and pays it back in future along…

Q: The quarterly pay

A: The loan amount refers to the money which a person should owe from a bank or financial institution…

Q: lack borrows $7,000.00 at an interest rate of 12% compounded monthly to be paid off monthly payment…

A: Dear student we need to use NPER function in excel to solve this problem.

Q: Given the annual interest rate and a line of an amortization schedule for that​ loan, complete the…

A: Annual interest rate = 5.4% Monthly interest rate = 5.4%/12 = 0.45% Closing balance = $ 4,464.20…

Q: A equal principal payment loan of $3000 is amortized by means of 12 quarterly payments, beggining…

A: Loan Amount = $3,000Total Number of Payments = 12Loan Principal Payment = $3,000 ÷ 12 = $250Interest…

Q: With a $350,000 home mortgage loan with a 20-year term at 9% APR compounded semiannually compute the…

A: Mortgage loans are paid by equal monthly installments that carry the payment for interest and…

Q: A loan is repaid by making payments of $2000 at the end of every six months for 12 years. If…

A: Semiannual payment (c) = $2000 Semiannual period (n) = 24 (i.e. 12 years * 2) Nominal interest rate…

Q: How much will it cost to purchase an ordinary annuity delivering semiannual payments of $2000 for…

A: Present Value can be calculated using PV function in excel   PV (rate, nper, pmt, [Fv], [type])…

Q: Prepare an amortization schedule for a three-year loan of $96,000. The interest rate is 9 percent…

A: A loan is a sum of money that is borrowed from a lender with the expectation that it will be paid…

Q: Scheduled loan payments of $1105 due in 9 months and $1216 due in 24 months are rescheduled as a…

A: The time value of money is a fundamental concept in finance that recognizes the idea that the value…

Q: A 44 month loan has monthly payments of $412. If the interest rate is 8.1%, compounded monthly, find…

A:

Q: Month-end payments of $1,450 are made to settle a loan of $123,700 in 8 years. What is the effective…

A: Month-end payments = $1,450Loan amount = $123,700Number of years = 8 years

Q: A $28,400 loan at 8% compounded quarterly is to be repaid by equal quarterly payments over a…

A: Loan amount=$28400Interest rate=8%Quarterly interest rate=r=2%Period=n=7years=7 x 4=28 payments

Q: Periodic deposit " ? At the end of every three months." rate: 5.5% compounded quarterly time: 4…

A:

Q: Compute the size of the final payment for the following loan. Periodic Payment Payment Period…

A: Amounts are paid by equal periodic payments and these payments carry the payment of interest and…

Q: Ten annual payments at an interest rate of 7% are made to repay a loan of $9000. Build the table…

A: Yearly Payments implies, regarding any Material Contract, the aggregate sum of the installments…

Q: Table 1-1 details three different loan repayment plans described below. Each plan repays a $6,000…

A: Loan Amount = $6,000 Time Period = 6 Years  Interest Rate = 10%

Q: is amortized by level payments made at the end of each quarter for 25 years.Tge monthly rate is…

A: Amortization refers to the breakdown of loan payments into principal and interest portions. It…

Q: Compute the size of the final payment for the following loan.   Principal​ $ Periodic Payment​ $…

A: A loan is  basically a type of debt that an individual or the other entity incurs. The lender, who…

Q: The portion of the payment that is applied to interest in year 1-4 is

A: Simple interest is a method of calculating the charge on a loan. Simple interest is calculated for…

Q: Contractual loan amount 60,000 origination fees of 3% Time period for loan is 5 years and and…

A: Given:   Contractual loan amount 60,000 and origination fees of 3% Time period for loan is 5 years…

Q: The Interest rate on a $56,000 loan is 8.4% compounded semiannually. Quarterly payments will pay off…

A: An interest rate method in which current interest is computed by multiplying the interest rate by…

Q: A new loan at 9% compounded quarterly requires quarterly paymets of $727.88 for seven years. Rounded…

A: Interest rate = 9% Quarterly interest rate (r) = 9%/4 = 2.25% Quarterly payment (P) = $727.88 Period…

Q: a. Calculate the interest component of Payment 13. Interest b. Calculate the principal component of…

A: Loan amortization refers to a schedule which is prepared to shows the periodic loan payments, amount…

Q: The interest rate on a $55,000 loan is 8.2% compounded semiannually. Quarterly payments will pay off…

A: Here, Loan Amount $ 55,000.00GivenInterest Rate8.20%GivenTime Period in years14GivenCompounding…

Q: Quarter-end payments of $1,490 are made for 8 years to settle a loan of $31,880. What is the…

A: Compound = n = Quarterly = 4Payment = pmt = $1490Time = nper = 8 * 4 = 32Present Value of Loan = pv…

Q: A $90,000 loan at 7.7% compounded semiannually requires monthly payments of $1,600. Calculate the…

A: A loan is a type of debt where a borrower borrows money from a lender with the agreement to repay…

Q: The interest rate on a $63,000 loan is 9.5% compounded semiannually. Quarterly payments will pay off…

A: As per our guidelines, we are supposed to answer only 3 sub-parts (if there are multiple sub-parts…

Q: The size of the final payment is Round the final answer to the nearest cen

A: Information Provided: Principal = $9900 periodic payment = $520 Payment period = 6 months Payment…

Q: The interest rate on a $100,000 loan is 7.2% compounded semiannually. The monthly payments on the…

A: To Find: Interest component of payment 221 Principle component of payment 156 Final Payment

Q: What monthly payment is required to pay off a $60,000 loan in seven years if the interest rate on…

A: Monthly payment refers to the amount that is being paid on monthly basis for the repayment of the…

Q: A $90,000 loan at 7.7% compounded semiannually requires monthly payments of $1,600. Calculate the…

A: We need to first calculate the monthly payment of loan thereafter the number o0f periods of loan and…

Q: Loan payment Determine the equal, annual, end-of-year payment required each year over the life of…

A: The annuity payments that needs to be paid by the borrower over the loan term for each year at given…

Q: 17. Bremen Company borrows $350,000 to be repaid in equal installments over a period of eight years.…

A: Laon amortization schedule means where repayment during the life of loan is written with interest.…

Risk and return

Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary. 

Capital Asset Pricing Model

Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.