Your company has just taken out a 1-year installment loan for $72,500 at a nominal rate of 11.0%but with equal end-of-month payments. What is the ratio of principal payment to the total paymentin the 2nd month? (Hard)A) 81.63%B) 73.67%C) 90.45%D) 77.55%E) 85.93%

First we need to use loan amortization formula below to calculate monthly payment. where P=Loann…

Answered: Your company has just taken out a…

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 complete the table below for End of Months: 2 , 13, 24, and 36
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Data Back-Up Systems has obtained a $29,000, 90-day bank loan at an annual interest rate of 15%, payable at maturity. (Note: Assume a 365-day year.) a. How much interest (in dollars) will the firm pay on the 90-day loan? b. Find the 90-day rate on the loan. c. Annualize your result in part b to find the effective annual rate for this loan, assuming that it is rolled over every 90 days throughout the year under the same terms and circumstances. Answers a. The amount of interest on the loan is $___. (Round to the nearest cent.) b. The effective 90-day rate is___%. (Round to two decimal places.) c. The effective annual rate is___%. (Round to two decimal places.)
What was the term of a $4850 loan at 4.5% if the interest due at the end was $145.50? Answer (need work shown): 8 months What annual rate of interest was earned if a $15,000 investment for 5 months earned $546.88 in interest? Answer (need work shown): 8.75%
8. A $25,000 loan has a yearly 3.2% interest applied to it monthly. The loan is being paid off with monthly payments of $200 per month. How much is still owed on the loan after one month of interest and payment has been applied? (1) $24,748.33 (3) $24,890.04 (2) $24,866.67 (4) $25,600.00
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?
9. Whirlwind Inc recently borrowed $250,000 from First Bank. At that time, the prime rate was 4%. It was a 90-day loan with interest to be paid at the end of the period with a rate that was prime plus 1.5%. (Assume a 365 day year.) What is the total interest paid on this loan?
A loan of $28,000.00, made 6 months ago, will be repaid by 3 equal payments – one today, one in 11 months, and one in 22 months. What is the amount of each of the equal payments if the interest rate is 5.555%
A customer repays a loan of 22,000 that has an effective annual interest rate of 5.15% by making payments of 2,200 at the end of each year for 11 years, followed by payments of 1,000 at the end of each year for as long as necessary, until a final payment of X of less than 1,000, made one year after the last regular payment of 1,000, repays the loan. Find X. a) 208 b) 295 c) 381 d) 468 e) 555
can it be solve please Useful Houseware Co. Ltd has received a $35,300 loan from Bank Corporation Limited. The annual payments are $4,589.81. If the company is paying 8.5% interest per year, how many loan payments must the company make? (Note on formatting: Round off to the nearest whole number.)
You plan to borrow $43,100 at an 8.0% annual interest 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 2? a. $3,110.63 b. $3,061.57 c. $7,665.11 d. $8,278.32 e. $3,448.00
Suppose you borrow $14,000. The interest rate is 11%, and it requires 4 equal end-of-year payments. Set up an amortization schedule that shows the annual payments, interest payments, principal repayments, and beginning and ending loan balances. Round your answers to the nearest cent. If your answer is zero, enter "0". Beginning Repayment Ending Year Balance Payment Interest of Principal Balance 1 $ fill in the blank 60 $ fill in the blank 61 $ fill in the blank 62 $ fill in the blank 63 $ fill in the blank 64 2 $ fill in the blank 65 $ fill in the blank 66 $ fill in the blank 67 $ fill in the blank 68 $ fill in the blank 69 3 $ fill in the blank 70 $ fill in the blank 71 $ fill in the blank 72 $ fill in the blank 73 $ fill in the blank 74 4 $ fill in the blank 75 $ fill in the blank 76 $ fill in the blank 77 $ fill in the blank 78 $ fill in the blank 79

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Your company has just taken out a 1-year installment loan for $72,500 at a nominal rate of 11.0% but with equal end-of-month payments. What is the ratio of principal payment to the total payment in the 2nd month? (Hard) A) 81.63% B) 73.67% C) 90.45% D) 77.55% E) 85.93%