On 1/1/A, borrow $8k to be repaid in 5 equal annual installments on 12/31.
a. How much is each installment if i = 10%?
b. Interest expense in 2nd year?
explanation appreciated
On 1/1/A, borrow $8k to be repaid in 5 equal annual installments on 12/31. a. How...
You plan to borrow $385,000 now and repay it in 25 equal annual installments (payments will be made at the end of each year). If the annual interest rate is 12%, how much will your annual payments be?
You wish to borrow $2,000 to be repaid in 12 monthly installments of $170.30. The annual terest rate (APR) is? A) 22% B) .04% C) 4% D) 24%
(1 point) A 25-year loan is to be repaid with equal installments at the end of each yeas. The amount of interest paid in the 6th installment is $156. The amount of interest paid in the 16th installment is $126. Calculate the amount of interest paid in the 21st installment ANSWER-$
(1 point) A 25-year loan is to be repaid with equal installments at the end of each yeas. The amount of interest paid in the 6th installment is $156....
You wish to borrow $2,000 to be repaid in 12 monthly installments of $189.12. a). What is the monthly interest rate? b). What is the APR of the loan? c). What is the EAR of the loan?
2. To illustrate with the simplest case of annual payments, suppose you borrow $22,000 at 12 percent compound annual interest to be repaid over the next six years. Equal installment payments are required at the end of each year. In addition, these payments must be sufficient in amount to repay the $22,000 together with providing the lender with a 12 percent return. Please determine the annual payment, and amortization schedule.
2. A S20,000 loan obtained today is to be repaid in equal monthly installments over the next seven years. If the annual interest rate is 6%, compounded monthly, how mnch is to be paid each month? (9) 3. An investment of $150,000 is expected to generate an after-tax cash flow of $100,000 in year one and another $120,000 in year two. The cost of capital is 10%. a. What is the NPV of this project? Based on the NPV technique,...
You want to borrow $10,000 from a local bank, which is to be repaid in 2 equal semiannual installments. The loan officer initially offered an interest rate of 12% compounded monthly. However, you were able to negotiate that interest be compounded semiannually instead of monthly. With this negotiation, how much do you save in total interest payments over the loan life?
Question 3: Jan Jacobs can borrow $2,000 to be repaid in equal annual end-of-year amounts of $600 for the next 5 years. Help her find the interest rate on this loan (approximate your result to two decimal digits, show an excel sheet of your numerical work).
Installment Loan Schedule Assume you are to borrow money, the loan amount, at an annual interest rate to be paid in equal installments each period Loan Amount $ 25,000 9.90% Annual Interest Rate Periods per year 12 Years to payback See Table B.3 in book. 47.17454194 FACTOR = [1 -(1 / ((1R)An)]/ R Factor $ Equal Payments 529.95 let R = period interest rate number of periods to payback loan let n Number of periods: 60 Reduction in Principal Interest...
a. Complete an amortization schedule for a $21,000 loan to be repaid in equal installments at the end of each of the next three years. The interest rate is 8% compounded annually. Round all answers to the nearest cent. Beginning Repayment Ending Year Balance Payment Interest of Principal Balance 21000 8148.70 1680 14531.30 6468.70 $ 14531.30 8148.70 1162.50 7545.10 6986.20 $ 8148.70 7545.10 603.61 og 7545.10 $ b. What percentage of the payment represents interest and what percentage represents principal...