5. Brian borrowed 18,000 on a 60 month installment loan at a 6% (annual) interest rate....
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...
An investor borrowed 2000 PLN. The loan was for 6 months at 24% annual interest (compound interest rate). Create a loan amortization schedule if a) since the fourth month the annual interest is 18%, b) the investor doesn’t pay the fourth payment but he pays it plus interest with the fifth payment, c) the first payment is postponed for two months, d) the investor pays two payments, than he doesn’t pay for 3 months. The investor begins to pay off...
An amount of $15,000 is borrowed from the bank at an annual interest rate 12% h Calculate the repavment amounts if the loan ($15 000) will be repaid in two equal installments of $7.500 each, paid at the end of second and fourth years respectively. Interest will be paid each year Click the icon to view the interest and annuity table for discrete compounding when i- 12%% per year . a. The equal end-of-year payments required to pay off the...
Mark borrowed $12746 to help pay for expenses. If the loan carries an annual interest rate of 3.2% and he wants to be debt free in 3 years by making monthly payments, how much will each payment be? Round your answer to the nearest dollar.
A loan of $20,000 to purchase a car at annual nominal rate of interest of 6% compounded monthly will be paid back through monthly installments over 5 years, (a) with the 1st installment to be made 1 month after the release of the loan. What is the monthly installment? (b) with the 1st installment to be made Right after the release of the loan. What is the monthly installment? (DO NOT USE EXCEL) (answer for A is $386.66 and answer...
Your car loan requires payments of $300 a month for the first year and payments of $500 per month the second year. The annual interest rate is 6%, and payments begin in one month. What is the present value of this two-year loan?
Problem 5-50 Effective Interest Rate (L04) You've borrowed $8,117.01 and agreed to pay back the loan with monthly payments of $290. Assume the interest rate is 12% stated as an APR. a. How long will it take you to pay back the loan? (Do not round intermediate calculations. Round your answer to the nearest whole number.) Number of months b. What is the effective annual rate on the loan? (Do not round intermediate calculations. Enter your answer as a percent...
A company purchased equipment and signed a 4-year installment loan at 6% annual interest. The annual payments equal $11,200. The present value for an annuity (series of payments) at 6% for 4 years is 3.4651. The present value of 1 (single sum) for 4 years at 6% is 7921. The present value of the loan is: Multiple Choice $11,200. $8,872. $14,140 $44.800 $38,809
8. Calculating an installment loan payment using simple interest Calculating the Loan Payment on a Simple-Interest Installment Loan Instaliment loans allow borrowers to repay the loan with periodic payments over time. They are more common than single-payment loans because it is easier for most people to pay a fixed amount periodically (usually monthly) than budget for paying one big amount in the future. Interest on installment loans may be computed using the simple interest method or the add-on method. For...
Thompson borrowed $1,200,000 from his bank. The annual rate on his loan is 5% and he has to repay it with 24 equal annual payments. For his first payment, how much of it is used to reduce his outstanding balance (or principal)? A) $50,000 B) $32,458 C) $26,965 D) $22,371 E) $41,885