Today we have a debt that must be paid in 30 installments per month due, as follows: $10,000 the first, $12,000 the second, $14,000 the third and so on, and with an interest rate of 3.2% per month. It is desired to be replaced by the equivalent in 30 equal installments, starting in four months, and an interest rate of 3% per month. Determine the value of the new uniform series Select one: a. $36.582,35 b. $31.872,99 c. $29.772,99

Today we have a debt that must be paid in 30 installments per month due, as follows: $10,000 the first, $12,000 the second, $14,000 the third and so on, and with an interest rate of 3.2% per month. It is desired to be replaced by the equivalent in 30 equal installments, starting in four months, and an interest rate of 3% per month. Determine the value of the new uniform series Select one: a. $36.582,35 b. $31.872,99 c. $29.772,99

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 41P

See similar textbooks

Similar questions

A loan of $7000 is to be repaid by three equal payments one and a half year from now, three years and four and three quarter years from now respectively. What is the size of the equal payments if interest on the debt is 15% compounded quarterly ? Use six decimal places for intermediate calculations and round the final answer to 2 decimal places (e.g., 0,00) Be sure to show the tinancial calculator inputs for PY, I, PV, CY, N, FV and PMT on the document that you will hand in at the end of the test. Show the work for each calculation (required). Include a timeline if desired (optional)
. A debt of P100,000 is to be discharged by ten semi-annual payments, the first to be made 6 months after the loan is given. The debt will be discharged by 5 equal payments each P10,000 and by 5 other equal payments of such amount that the final payment will liquidate the debt. If interest is 12% compounded semi-annually, what is the amount of the last 5 payments? Construct an amortization schedule.
Consider a $150,000 loan with an annual interest rate of 6.5 percent and a 30-year term. Discount points are equal to 2 percent. All other up-front financing costs to be paid by the borrower total $3,000. Compute the monthly payment and the loan balance at the end of months 1–6. What is the effective borrowing cost (EBC), assuming that the loan remains outstanding to maturity?
An ARM for $101,800 is made at a time when the expected start rate is 5 percent. The loan will be made with a teaser rate of 2 percent for the first year, after which the rate will be reset. The loan is fully amortizing, has a maturity of 25 years, and payments will be made monthly. Required: a. What will be the payments during the first year? b. Assuming that the reset rate is 6 percent at the beginning of year (BOY) 2, what will the payments be? c. By what percentage will the monthly payments increase? d. If the reset date is three years after loan origination and the reset rate is 6 percent, what will the loan payments be beginning in year 4 through year 25?
An ARM for $100,000 is made at a time when the expected start rate is 5 percent. The loan will be made with a teaser rate of 2 percent for the first year, after which the rate will be reset. The loan is fully amortizing, has a maturity of 25 years, and payments will be made monthly. Required:a. What will be the payments during the first year?b. Assuming that the reset rate is 6 percent at the beginning of year (BOY) 2, what will the payments be?c. By what percentage will the monthly payments increase?d. If the reset date is three years after loan origination and the reset rate is 6 percent, what will the loan payments be beginning in year 4 through year 25
A demand loan of $3000.00 is repaid by payments of $1000.00 after two years, $1000.00 after four years, and a final payment after six years. Interest is 9% compounded quarterly for the first two years, 10% compounded annually for the next two years, and 10% compounded monthly thereafter. What is the size of the final payment? TI The final payment is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
Debt payments of $800.00 due now and $1400.00 due in five months are to be repaid by a payment of $1000.00 in three months and a final payment in eight months. Calculate the size of the final payment if interest is 6%. Select one: a. $1228 b. $1100 c. $2238 d. $1450 O O
A demand loan of $3000.00 is repaid by payments of $1500.00 after two years, $1500.00 after four years, and a final payment after six years. Interest is 8% compounded semi-annually for the first two years, 9% compounded quarterly for the next two years, and 9% compounded annually thereafter. What is the size of the final payment? The final payment is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
A debt of 8,800 with interest at 5% payable semi annually will be discharged by payment of 1,200 at the end of each 8 periods as long as necessary, with a final smaller payment of 8 periods after the last 1200 is paid due to COVID19. How much will be the beginning amount after the last period? How much will be the final payment after the last period? How much will ve the interest after the last period? Give the amortization schedule containing the period, beginning amount, payment, interest, repayment and ending balance.
A debt of 8,800 with interest at 5% payable semi annually will be discharged by payment of 1,200 at the end of each 8 periods as long as necessary, with a final smaller payment of 8 periods after the last 1200 is paid due to COVID19. How much will be the beginning amount after the last period? How much will be the final payment after the last period? How much will ve the interest after the last period? Give the amortization schedule containing the period, beginning amount, payment, interest, repayment and ending balance. Show your solution, dont use excel
A loan of $4,000 is to be repaid by two payments of $1,500 due in three and eight months. A third unknown payment is due in thirteen months. What should be the size of the third payment if an interest rate of 6% is charged on the loan? Use today as the focal date.
A demand loan of $5000.00 is repaid by payments of $2500.00 after two years, $2500.00 after four years, and a final payment after six years. Interest is 99% compounded quarterly for the first two years, 10% compounded monthly for the next two years, and 10% compounded annually thereafter. What is the size of the final payment? The final payment is $. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)