Question 5 A loan received at the beginning of 2016 is scheduled to be repaid as...
Question 1 A loan repayment plan is scheduled to be made as 10 uniform monthly payments of $1,500. The first repayment is expected to take place on May 30th. Subsequent repayments will take place at the ends of each subsequent month. For simplicity, assume that each month is precisely 30 days. The loan has a nominal annual interest rate of prime rate + 2.5%. If the prime rate, set by the lending bank, is currently 3.95%. Assuming that the prime...
8. Prepare the loan amortization schedule ($15) You borrow $1,000, and the loan is to be repaid in three equal payments at the end of each of the next three years. The lender charges a 6 percent interest rate on the loan balance that is outstanding at the beginning of each year. 1) Calculate the payment the firm must repay each year. 2) Prepare the loan amortization schedule (fill all the numbers in each cell). Repayment of Remaining Principal Beginning...
8. Prepare the loan amortization schedule ($15) You borrow $1,000, and the loan is to be repaid in three equal payments at the end of each of the next three years. The lender charges a 6 percent interest rate on the loan balance that is outstanding at the beginning of each year. 1) Calculate the payment the firm must repay each year. 2) Prepare the loan amortization schedule (fill all the numbers in each cell). Beginning Amount Repayment of Principal...
An amortization table reports the amount of interest and principal contained within each regularly scheduled payment used to repay an amortized loan. Example Amortization Schedule Payment Interest Repayment of Principal Year Beginning Amount Ending Balance 1 2 3 Consider the amount of the interest payments included in each of the payments of an amortized loan. Which of the following statements regarding the pattern of the interest payments is true? The portion of the payment going toward interest is smaller in...
QUESTION 3 You took a loan in the amount of RM29,746.39. You were told that you have to make end-of- year annual repayments as per the schedule below. Year D Annual Repayment RM? RM? RM? RM1,500 RM2,000 RM3,500 RM5,000 RM7,500 RM7,500 RM12,000 If the annual rate of interest is 4.5% (annual compounding), calculate the missing cash flows (annual repayment for years 1, 2 and 3). The annual repayment for years 1, 2 and 3 is the same amount. (7 marks)
QUESTION 3 You took a loan in the amount of RM29,746.39. You were told that you have to make end-of year annual repayments as per the schedule below Annual Repayment Year 1 RM? RM? 2 RM? 3 RM1,500 RM2,000 5 6 RM3,500 7 RM5,000 8 RM7,500 RM7,500 RM12,000 10 If the annual rate of interest is 4.5% (annual compounding), calculate the missing cash flows (annual repayment for years 1, 2 and 3). The annual repayment for years 1, 2 and...
Samuel and Sandra Sharp wish to borrow $600,000 to buya home. The loan from the Highway Bank requires equal monthly repayments over 20 years, and carries an interest rate of 5-1 % per annum, compounded monthly. The first repayment is due at the end of one month after the loan proceeds are received. You are required to calculate the following. i) The effective annual interest rate on the above loan (show as a percentage correct to 3 decimal places). li)...
Loan question. I think I can do 1a correctly but no clue on b. p.s I got repayment for 1a) as R=£127.67 Question 1 Kes has approached a loan company with the aim of borrowing £11,000. Kes accepts that this will be repaid in level monthly instalments (in arrears) for 10 years. The loan company has agreed with Kes that a setup fee of £500 should be added to the loan amount. This additional cost represents the extra administrative work...
Sue will need $120,000 to refurbish her house at the comer of a main road into a cake shop in 5 years. She has a saving account which earn 3.47% p.a. compounding quarterly and she is able to deposit $800 into that account at the end of each month for 5 years. a) Will Sue have enough money after 5 years? If not, how much is in short? Show all calculations. (4 marks) b) Even if Sue may not have...
Question 1 -Interest & loan Sue will need $120,000 to refurbish her house at the corner of a main road into a cake shop in 5 years. She has a saving account which carn 3.47 % p.a. compounding quarterly and she is able to deposit $800 into that account at the end of each month for 5 years. a) Will Sue have enough money after 5 years? If not, how much is in short? Show all calculations. (4 marks) b)...