You are repaying a loan of ${A} by making payments at the end of every month for {B} years. Interest is {C}% compounded {D}. Solve for the missing value and complete the partial amortization table below. Do not use units, negative values, or comma separators (eg. use 10000 not $10,000). {A} $54,000 Missing variable: Partial amortization table: PAYMENT NUMBERAMOUNT PAID 0 1 2 3 ** *** {B} 5 *** INTEREST PAID *** *** {C} 2.55% *** *** PRINCIPAL REPAID PRINCIPAL BALANCE $54,000.00 ** {D} annually J*** OUTSTANDING *** *** ...

You are repaying a loan of ${A} by making payments at the end of every month for {B} years. Interest is {C}% compounded {D}. Solve for the missing value and complete the partial amortization table below. Do not use units, negative values, or comma separators (eg. use 10000 not $10,000). {A} $54,000 Missing variable: Partial amortization table: PAYMENT NUMBERAMOUNT PAID 0 1 2 3 * {B} 5 * INTEREST PAID * * {C} 2.55% * * PRINCIPAL REPAID PRINCIPAL BALANCE $54,000.00 {D} annually J* OUTSTANDING * *** ...

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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Please help. Please don't use excel
A borrower is faced with choosing between two loans. Loan A is available for $89,000 at 6 percent interest for 30 years, with 6 points to be included in closing costs. Loan B would be made for the same amount, but for 7 percent interest for 30 years, with 2 points to be included in the closing costs. Both loans will be fully amortizing. Required: a. If the loan is repaid after 20 years, which loan would be the better choice? b. If the loan is repaid after five years, which loan is the better choice? (Analyze the decision with both rates at two decimal places.)
Problem 1: Read each problem carefully and answer each question to solve the problem. Find the period of deferral in each of the following deferral annuity problems (one way to find the period of deferral is to count the number of artificial payment (k). Make a diagram 1. Payment of P 3,000.00 every 3 months for 8 years that will start 6 years Time Diagram Answer
4. find the periodic payemnt R required to amortize a loan of P dollars over T years with interest charged at the rate of r%/year compounded M times a year. - round mearest cent - P= 12,000 R=4 T=5 M=12
Write TRUE if the statement is true and FALSE if otherwise. 1. Compounding refers to the earning of interest on interest. 2. Discounting refers to the process of bringing the future back to the present. 3. The more frequently interest is compounded, the larger will be the final or terminal amount. 4. It takes longer than 8 years to retire a $24,000 loan at 8% if the annual payment is $3,000. 5. An annuity of $100 for 10 years is currently lessvaluable if interest rates are 10% instead of 12%. 6. If a person buys a stock for $10 and sells it after 10years for $20, the annual compound return is 10%. 7. Higher rates of interest are associated with greater present values. 8. If interest rates are 9 percent, an annuity of $100 for 10 years is to be preferred to $1,000 after 10 years. 9. If a bank pays 5 percent compounded semi-annually, the true rate of interest is less than 5 percent annually.
Complete the following amortization chart by using Table 15.1. Note: Round your "Payment per $1,000" answer to 5 decimal places and other answers to the nearest cent. Selling price of home Down payment Principal (loan) Rate of interest Years Payment per $1,000 Monthly mortgage payment 69 $ 82,000 $ 6,000 5.0 % 30 30
To purchase a new equipment it is necessary to borrow $23000. The equipment dealer offers a 8-year loan at an interest rate of 4% compounded annually. If you make only one payment at the end of the loan period repaying the principal and interest what is the total amount that must be paid back? Question 4 options: $27012 $26766 $28920 $31477 $25075
2. Using Excel - Calculate using formulas (paste into a word document) the amortization schedule for a 5-year fixed-rate monthly payment mortgage that is fully amortizing. The interest rate on the loan is 6% and it is a $320,000 loan amount at origination with no points or fees.
Find the periodic payment R required to amortize a loan of P dollars over t years with interest charged at the rate of r%/year compounded m times a year. (Round your answer to the nearest cent.) P = 40,000, r = 5, t = 19, m = 4
H3. Show proper step by step calculation
Give typing answer with explanation and conclusion Assume you want to borrow $300,000 and have been presented with two options. The first option is a fully amortizing loan with an interest rate of 3% and $4000 of origination fees and points. The second option is an interest only loan with an interest rate of 4% and $5000 of origination fees and points. Both loans are for 30 years and have monthly payments. Further assume that if the borrower chooses the interest only loan, any money saved on the monthly payment can be invested with a projected return of 7%. Also assume that the proceeds from the investment will first be used to pay off any remaining balance on the loan. How much money will the investor have left at the end of 30 years after repaying the loan? Group of answer choices None, the investor will owe $12,373.42 $323,060.72 $22,063.08 $30,750.78
Problem 1: Read each problem carefully and answer each question to solve the problem. Find the period of deferral in each of the following deferral annuity problems (one way to find the period of deferral is to count the number of artificial payment (k). Make a diagram 3. Payment of P 700.00 every month for one (1) year that will start at the end of the third month Time Diagram Answer

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