You are asked to help the company "X" by computing the Loan repayment table. a) Draw up the repayment table for a loan of $500,000 at a rate of 7% repayable in 4 constant annual installments (annuities) after an amortization delay of 2 years (which means that the value of the amortization for the first two years is zero) b) Find the total value of the paid annuities.

You are asked to help the company "X" by computing the Loan repayment table. a) Draw up the repayment table for a loan of $500,000 at a rate of 7% repayable in 4 constant annual installments (annuities) after an amortization delay of 2 years (which means that the value of the amortization for the first two years is zero) b) Find the total value of the paid annuities.

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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You have just been hired as a loan officer at a national bank. Your first assignment is to calculate the amount of the periodic payment (in $) required to amortize (pay off) the following loan being considered by the bank (use Table 12-2). (Round your answer to the nearest cent.) LoanPayment PaymentPeriod Term ofLoan (years) NominalRate (%) Present Value(Amount of Loan) $ every month 1 1 4 6 $30,000
pls refer to the image attached, 1. suppose that you have the capacity to pay, would you rather borrow a loan that is amortized monthly, or one that is amortized quarterly? 2. what is your considerations when availing a loan? (quantitative or qualitative considerations) Discuss.
Consider a loan of 1,000,000 which is to be amortized by 60 monthly payments. The interest rate is 10% converted monthly. Construct the first 5 rows (t=0 to t=4) of the amortization schedule
You have just been hired as a loan officer at a national bank. Your first assignment is to calculate the amount of the periodic payment (in $) required to amortize (pay off) the following loan being considered by the bank (use Table 12-2). (Round your answer to the nearest cent.) LoanPayment PaymentPeriod Term ofLoan (years) NominalRate (%) Present Value(Amount of Loan) $ every month 1 3 4 6 $40,000
b) suppose that the market interest rate is 5%. Calculate the present value of the following. Show how your answer is obtained. Calculation using a formula, not using excel. i) A fixed payment loan with annual payments of $163 that matures in three years.
The loan is due at the end of 2 years(balloon loan). It has a balance of $5,000 and an interest rate of 10% that accrues semi-annually. The bank said they will take the present value of the loan. Do you have enough money to pay off the loan?
Suppose you are thinking of availing a loan of P100,000 at Pag-ibig Funds for house repairs after typhoon Jolina. Interest is pegged at 14% compounded quarterly, and you intend to make equal quarterly payments to pay-off this loan in three years. Set-up an amortization schedule (table) to serve as your guide in tracking the payments made, interest paid, principal repaid and outstanding principal for each period.
Using manual formulas and not excel:
1. An amortized loan of P250,000 with an interest rate of 9% will be paid monthly for 3 years. Find the monthly amortization. A high-end laptop computer was bought at an amortized loan of P100,000 with 12% annual interest for 24 months. Find the semi- annually amortization and construct an amortization schedule.
Give complete solutions and draw a cashflow diagram. Provide an amortization schedule 1. You have a car loan of $15,000 with an annual interest rate of 8%. The loan term is 3 years. Calculate the outstanding balance after 2 years of making monthly payments.
A design studio received a loan of $8,950 at 5.60% compounded semi-annually to purchase a camera. If they settled the loan in 2 years by making quarterly payments, construct the amortization schedule for the loan and answer the following questions: a. What was the payment size? Round to the nearest cent b. What was the size of the interest portion on the first payment? ← a acer SUBMIT QUESTION SAVE PROGRESS V SUBMIT ASSIC
To pay for remodeling, the company will take out a $500,000 five-year loan at 9.5% interest, compounded quarterly. The terms of the loan have been entered in the Loan Analysis worksheet. In cell B8, calculate the quarterly payment on the loan based on the loan conditions already entered. Complete the amortization schedule in cells B11 through E30. Column B contains the interest payment for each quarter, and column C contains the principal payment. Column D contains the remaining principal at the start of each month. The initial principal remaining is $500,000. The subsequent remaining principal values are reduced by the principal payment made in the previous quarter. Calculate the ending balance in cell D31. Use the IPMT function in cell B11 to calculate the interest amount paid per period. Copy this formula to cell B30. Use the PPMT function in cell C11 to calculate the principal amount paid per period. Copy this formula to cell C30. Write a formula in cell D11 to indicate the…

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