To pay off a loan of R7 000 due now and a loan of R 2 000 due in 14 months' time, Mrs Skosana agrees tn make three payments in two, five and ten iths' time respectively. The second payment is to be double the first and the third payment is to be triple the first. What is the approximated size of the payment at month five if interest is calculated at 16% per year, compounded monthly? a. R1 582,43 b. R3 000,00 C. R3 164,86 d. R4 500,00

To pay off a loan of R7 000 due now and a loan of R 2 000 due in 14 months' time, Mrs Skosana agrees tn make three payments in two, five and ten iths' time respectively. The second payment is to be double the first and the third payment is to be triple the first. What is the approximated size of the payment at month five if interest is calculated at 16% per year, compounded monthly? a. R1 582,43 b. R3 000,00 C. R3 164,86 d. R4 500,00

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 11PROB

See similar textbooks

Similar questions

Calculating single-payment loan amount due at maturity. Stanley Price plans to borrow 8,000 for five years. The loan will be repaid with a single payment after five years, and the interest on the loan will be computed using the simple interest method at an annual rate of 6 percent. How much will Stanley have to pay in five years? How much will he have to pay at maturity if hes required to make annual interest payments at the end of each year?
To pay off a loan of R7 000 due now and a loan of R2000 due in 14 months' time, Olorato agrees to make three payments in two, five and ten months' time respectively The second payment is to be double the first and the third payment is to be triple the first. What is the size of the payment at month five if interest is calculated at 16% per year, compounded monthly? 1 R4 627,26 12) R3 164,86 13] R3 000,00 H RI 582,43
Po
K For how long will Logan have to make payments of $322 at the end of every year to repay a loan of $2470 if interest is 9% per annum compounded monthly? State your answer in years and months (from 0 to 11 months) He will have to make payments for year(s) and month(s) CHED-
a. If you borrow $2,200 and agree to repay the loan in five equal annual payments at an interest rate of 12%, what will your payment be? b. What will your payment be if you make the first payment on the loan immediately instead of at the end of the first year?
For how long will Markus have to make payments of $116 at the end of every month to repay a loan of $3340 if intere is 4% per annum compounded semi-annually? State your answer in years and months (from 0 to 11 months). He will have to make payments for year(s) and month(s).
Mr. Eden borrows from the bank P600,000 at 12% pa, agreeing to pay the loan in 15 equal quarterly payments. What should the payments be if the first payment is to be made six months from now?a. P51,767.74 b. P P54,920.40 c. P53,320.78 d. P56,568.01
Nancy takes out a $500,000 loan for 25 years at 4% monthly. a) What is the monthly payment?b) What is the final payment? TVM FORMULA
Senyor Pigafetta borrowed today from Ginoong Lapulapu P300,000.00 and agreed to repay the loan with 4 equal monthly amounts, the first payment to start 1 month from today. How much is the value of each equal monthly payment? Construct an amortization schedule. Use interest rate at 12% compounded monthly.
For how long Kirk have to make payments of $290 at the end of every year to repay loan of $2530 if the interest is 10% per annum compounded qualterly ? state your answer in year and months(0 to 11 months)
a
If you obtain a loan of P 1.0 M at the rate of 12% compounded annually in order tobuild a house, how much must you pay monthly to amortize the loan within theperiod of ten years?