PVOrdinary Annuity = C*[(1-(1+i/100)^(-n))/(i/100)] |
C = Cash flow per period |
i = interest rate |
n = number of payments |
900000= Cash Flow*((1-(1+ 6/100)^-4)/(6/100)) |
Cash Flow = 259732.34 |
Annual rate(M)= | yearly rate/1= | 6.00% | Annual payment= | 259732.34 | |
Year | Beginning balance (A) | Annual payment | Interest = M*A | Principal paid | Ending balance |
1 | 900000.00 | 259732.34 | 54000.00 | 205732.34 | 694267.66 |
2 | 694267.66 | 259732.34 | 41656.06 | 218076.28 | 476191.37 |
3 | 476191.37 | 259732.34 | 28571.48 | 231160.86 | 245030.51 |
4 | 245030.51 | 259732.34 | 14701.83 | 245030.51 | 0.00 |
Where |
Interest paid = Beginning balance * Annual interest rate |
Principal = Annual payment – interest paid |
Ending balance = beginning balance – principal paid |
Beginning balance = previous Year ending balance |
UNA 1 WUestion 4 You contract a loan of 90.0000AED on 4 years. The interest rate...
Question 4 You contract a loan of 90,0000AED on 4 years. The interest rate is 6 % compounded annually. Construct an amortization schedule for the loan repayment. (5 Marks)
Question 3 You contract a loan of 180,000AED on 5 years. The interest rate is 2% compounded annually. Construct an amortization schedule for the loan repayment. (5 Marks)
Question 3 You contract a loan of 180,000AED on 5 years. The interest rate is 2% compounded annually. Construct an amortization schedule for the loan repayment. (5 Marks)
city of Business and Economics py you $100 32 years the te of return investors Question 3 You are considering investing in a security that will go Assume these investments is worth $654 today, what is the ea earn on this investment? Ilif Anual Percentage Rate (APR) is 15.25%, calculate the (EAR) wben interest rate is compounded Quarterly ii. Continuous culate the effective Annual Rate i. (2.5+253 Marks) Question 4 You contract a loan of 90.0000AED on 4 years. The...
Question ? How many years will take for an investment of 57.500 to grow to $2.000 is invested w a lly? At what rate of interest mest you savings of $10,000 he compounded annually for it to grow to 52.000 in years? 12.5-25-5 marks) a lot of 100AED on 5 years. The interest rate is 2% compounded Construct an amortization schedule for the loan repayment (5 Marks) al Question 2 i. How many years will it take for an investment...
1. What is the interest earned from a savings of P10,000 at a simple interest rate of 107 per year for 5 years? (5 points) 2. How long does a man need to invest P5,000 to be P9,000 at an interest rate of 10 compounded annually? (5 points) 3. What is the rate of interest, compounded monthly charged to an investment of P2 000 that pays P1, 205 per month for 2 years. (5 points) 4. How much annual deposit...
Your brother plans to borrow $37,000 at a 6.8% interest rate compounded annually. The contract terms require your brother to amortize the loan with 8 equal payments each made at the end of each year. He asks for your help to construct an amortization schedule showing details of the payments. Answer the following question: Before an amortization schedule is constructed, you need to solve for a variable first by pressing CP in the financial calculator. FV PV N 1/Y PMT
5(a) A company is discussing a $0.5 million loan with a bank. The interest rate is 12% compounded annually and the repayment period is 5 years. The bank is offering two options for loan repayment: Option A: Payments are to be received in equal installments at the end of each year. Option B: Interest is to be received on a yearly basis and the Principal is to be receivedat the end. All loan repayment items are end-of-year payments. Which options...
5(a) A company is discussing a $0.5 million loan with a bank. The interest rate is 12% compounded annually and the repayment period is 5 years. The bank is offering two options for loan repayment: Option A: Payments are to be received in equal installments at the end of each year Option B: Interest is to be received on a yearly basis and the Principal is to be received at the end All loan repayment items are end-of-year payments Which...
Your brother plans to borrow $37,000 at a 6.8% interest rate compounded annually. The contract terms require your brother to amortize the loan with 8 equal payments each made at the end of each year. He asks for your help to construct an amortization schedule showing details of the payments. Answer the following question: Before an amortization schedule is constructed, which TVM variable should be set equal to zero in the financial calculator 1/Y PV N PMT FV