Answered: Your business requests a 3-month loan…

Your business requests a 3-month loan for 50,000. What will be the interest paid at the end of the term if the business risk percentage is assessed at 2.2% and LIBOR is at 1.8%?

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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Similar questions

Assume that you take out a $2000 loan for 53 months at 5.5% APR. How much total interest will you have paid at the end of the 53 months?
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A loan of P15 000 is taken out. If the interest rate on the loan is 7%, how much interest is due and what is the amount repaid if a) The loan is due in seven months; b) The loan was taken out on April 7 and is due in seven months?
A borrower takes out a 30-year loan for a house worth $250,000. If the annual interest rate is 6%. if the borrower chooses to pay $40,000 at the end of year 12, what will the new payments be assuming the loan maturity will not be reduced?
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You plan to borrow $47,000 at a 7.5% annual rate. The terms require you to amortize the loan with 7 equal end of year payments. How much interest would you be paying in year 4?
If Your bank _offers to lend y~u $100,000 at_ an 8.5% annual interest rate to start your new business. The terms reqwre you to amortize the loan with 10 equal end-of-year payments. How much interest would you be paying in Year 2?
4) I have an NOI of$172,400. The lender indicated that I can borrow funds at a 7.0% interest rate with a 25 year amortization and 5 year term at a 1.20 Debt Service Ratio(DCR). The lender will charge 2 points. a. What is the monthly payment? b.What is the APR (annual percentage rate) if fully amortized? C.What is the APR at the end of the loan term? d.What if I pay the loan off at the end of the second year, what is my APR? e.What if there was a prepayment penalty of 1.5% at the end of year 4, what is myAPR?

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