U. John borrows $10 000 for 10 years and uses a sinking fund to repay the principal The sinking tund deposits earm an annual effective interest rate of 5% The total required payment for both the interest and the sinking-fund deposit made at the end of each year is $1445-05 Calculate the annusl effective interest rate charged on the loan 7. A company borrows $10 000 for 5 years Interest of Sf

U. John borrows $10 000 for 10 years and uses a sinking fund to repay the principal The sinking tund deposits earm an annual effective interest rate of 5% The total required payment for both the interest and the sinking-fund deposit made at the end of each year is $1445-05 Calculate the annusl effective interest rate charged on the loan 7. A company borrows $10 000 for 5 years Interest of Sf

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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9. A company borrows 1,000,000 at an annual effective discount rate of 4%. The loan is to be repaid with n annual payments of 100,000 plus a drop payment one year after the nth payment. The first payment is due two years after the loan is taken out. Calculate the amount of the drop payment. A 87.072.14 B 90,700.14 C 94,479.31 D 98,415.95 E 99,999.99
A Company recieved a loan of 140,000 at 5%Compounded monthly-to Purchase equipment for the company if they have to repay $2000 at the endof every month construct an amorti3ation Schedule Provding details of this repayment
On January 1, a company agrees to pay $22,000 in eight years. If the annual interest rate is 6%, determine how much cash the company can borrow with this agreement. (PV of $1. EV of $1. PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places.) Future Value 22.000 Table Factor Amount Borrowed
A debt of $13,000 with interest at 5% compounded semi-annually is repaid by payments of $1,850 made at the end of every 3 months. Construct an amortization schedule showing the total paid and the total cost of the debt. Complete the amorization schedule. (Round to the nearest cent as needed.) Outstanding Principal Balance $13,000 Payment Number Amount Paid Interest Paid Principal Repaid 1 $1,850 2 $1,850 3 $1,850 $ $ 4 $1,850 $ 5 $1,850 $4 6 $1.850 $ 7 $1,850 $ $ 8 $0 The total paid is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) The total interest is S
a) A bank made a 4-year 12% amortizing $2,500,000 loan with equal payments. What is the amount of interest and principal paid at the end of the 3rd year? What is the balance on the loan at the end of the 3rd year? b) Assume instead the bank demands that the borrower pay interest only for the first two years and then principal payments of $1,250,000 in years 3 and 4. What is the amount of interest and principal paid at the end of the 3rd year? What is the balance on the loan at the end of the 3rd year? Assume the same 12% rate of interest. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac).
A company borrows $100,000 with interest at j₁2 = 9%. The loan is to be amortized by monthly payments of $1550 for as long as necessary. A final smaller payment will be calculated so the loan will be exactly repaid. The outstanding balance immediately after the th th 88 payment is $796.44. What is the value of the 89" and final payment? O A. $790.51 B. $796.44 C. $802.41 D. $808.43
Subject :
Develop an amortization schedule for the loan described. (Round your answers to the nearest cent.) $35,000 for 1 year at 12% compounded quarterly Period Payment Interest Balance Reduction Unpaid Balance $35,000 %24 24 24 $0.00 %24 %24 %24 %24 %24 %24 %24 %24 %24 %24 %24 %24 %24 2. 3. 4-
A $ 25,000 loan at 18% semi-annually is to be amortized monthly for 2 years. Solve for the outstanding balance after a year. 13,627.69 dollars remaining 13,618.69 dollars remaining 13,613.69 dollars remaining 13,636.69 dollars remaining
A Company recieved a loan of 180,000 at 5%Compounded monthly-to Purchase equipment for the company if they have to repay $1500 at the endof every month construct an amorti3ation Schedule Provding details of this repayment
the interest rate om 56,000 loan is 8.4% compounded semiannually. quarterly payments will pay off the loan in thirteen years calculate the interest component of payment 11 calculate the proncipal component of payment45 calculate the total intrest in payment 33 to 40 inclusive calculate the reduction of principals in year 5
A company borrowed an amount of 400,000 dinars for a period of four years at a compound interest at an annual rate of 5% and pledged to repay the loan and its interest together in equal installments, each of which pays the end of the loan period. Find the following: 1) the value of the fixed payment 2) the form of the loan amortization table rounded to the nearest dinar 3) Calculate the amount Paid after the second payment 4) Calculate the remaining amount after paying the third payment

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