ABC wants to get a loan from the bank. ABC can make $1,000 payments each year...
ABC wants to get a loan from the bank. ABC can make $1,000 payments each year for the next 4 years. ABC is usually charged a 12% interest rate. What amount would the bank be willing to loan ABC?
Homework Answers
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ABC wants to get a loan from the bank. ABC can make $1,000
payments each year...
James wants to take out a loan. He can afford to make monthly payments of 100...
James wants to take out a loan. He can afford to make monthly
payments of 100 dollars and wants to pay the loan off after exactly
30 years.
What is the maximum amount that James can afford to borrow if
the bank charges interest at an annual rate of 8 percent,
compounded monthly?
(Give your answer, in dollars, correct to the nearest
dollar.)
Nicola borrows 60000 dollars from a bank that charges interest
at an annual rate of 10 percent,...
You borrow $1,000 from the bank and agree to repay the loan over the next year...
You borrow $1,000 from the bank and agree to repay the loan over
the next year in 12 equal monthly payments of $90. However, the
bank also charges you a loan initiation fee of $29, which is taken
out of the initial proceeds of the loan. What is the effective
annual interest rate on the loan, taking account of the impact of
the initiation fee?
You borrow $1,000 from the bank and agree to repay the loan over the next...
You have a loan outstanding. It requires making sixsix annual payments of $1,000 each at the...
You have a loan outstanding. It requires making sixsix annual payments of $1,000 each at the end of the next six years. Your bank has offered to restructure the loan so that instead of making the six payments as originally agreed, you will make only one final payment in six years. If the interest rate on the loan is 7 %, what final payment will the bank require you to make so that it is indifferent to the two forms...
5. You obtain a 30 years loan on the 2.4% nominal interest rate mortgage of $18,000,000 from ABC ...
Enginering Economy:
5. You obtain a 30 years loan on the 2.4% nominal interest rate mortgage of $18,000,000 from ABC bank. The payment is due each month. You are allowed to pay back only the interest due for the first three years (the grace period) then make the monthly payments thereafter. You have paid back the loan for 10 years including the three years ofthe grace period. (30%) 5.1 What is the interest due per month for the first three...
You borrow $1,000 from the bank and agree to repay the loan over the next year...
You borrow $1,000 from the bank and agree to repay the loan over the next year in 12 equal monthly payments of $90. However, the bank also charges you a loan initiation fee of $28, which is taken out of the initial proceeds of the loan. What is the effective annual interest rate on the loan, taking account of the impact of the initiation fee? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal...
ABC needs to borrow $10,000. ABC plans to pay back the loan over 4 years and...
ABC needs to borrow $10,000. ABC plans to pay back the loan over 4 years and is usually charged a 12% interest rate. How much would their annual payment be?
1.You have a loan outstanding. It requires making three annual payments of $ 4,000 each at...
1.You have a loan outstanding. It requires making three annual payments of $ 4,000 each at the end of the next three years. Your bank has offered to restructure the loan so that instead of making the three payments as originally agreed, you will make only one final payment in three years. If the interest rate on the loan is 4 %, what final payment will the bank require you to make so that it is indifferent to the two...
make to each otner H Princeton Bank and the XYZ Manufacturing Corp. enter into the following five-year 8 swap with...
make to each otner H Princeton Bank and the XYZ Manufacturing Corp. enter into the following five-year 8 swap with a notional amount of $100 million and the following terms: every year for the next five years, Princeton Bank agrees to pay XYZ Manufacturing 6 % per year and receive from XYZ Manufacturing LIBOR. What type of swap is it? b. In the first year payments are to be exchanged, suppose that LIBOR is 3%.What is the amount of the...
Quantum Pizza took out a loan from the bank today for 22,700 dollars. The loan requires...
Quantum Pizza took out a loan from the bank today for 22,700 dollars. The loan requires Quantum Pizza to make a special payment of 13,800 dollars to the bank in 5 years and also make regular, fixed payments of X to the bank each year forever. The interest rate on the loan is 4.3 percent per year and the first regular, fixed annual payment of X will be made to the bank in 1 year. What is X, the amount...
Tillyard Inc. requires a $25,000 1-year loan. The bank offers to make the loan, and it...
Tillyard Inc. requires a $25,000 1-year loan. The bank offers to make the loan, and it offers you three choices: (1) 15 percent simple interest, annual compounding; (2) 12 percent nominal interest, daily compounding (360-day year); (3) 10.2 percent add-on interest, 4 end-of-quarter payments. The first two loans would require a single payment at the end of the year, the third would require 4 equal quarterly payments beginning at the end of the first quarter. What is the difference between...
James wants to take out a loan. He can afford to make monthly
payments of 100 dollars and wants to pay the loan off after exactly
30 years.
What is the maximum amount that James can afford to borrow if
the bank charges interest at an annual rate of 8 percent,
compounded monthly?
(Give your answer, in dollars, correct to the nearest
dollar.)
Nicola borrows 60000 dollars from a bank that charges interest
at an annual rate of 10 percent,...
You borrow $1,000 from the bank and agree to repay the loan over
the next year in 12 equal monthly payments of $90. However, the
bank also charges you a loan initiation fee of $29, which is taken
out of the initial proceeds of the loan. What is the effective
annual interest rate on the loan, taking account of the impact of
the initiation fee?
You borrow $1,000 from the bank and agree to repay the loan over the next...
Enginering Economy:
5. You obtain a 30 years loan on the 2.4% nominal interest rate mortgage of $18,000,000 from ABC bank. The payment is due each month. You are allowed to pay back only the interest due for the first three years (the grace period) then make the monthly payments thereafter. You have paid back the loan for 10 years including the three years ofthe grace period. (30%) 5.1 What is the interest due per month for the first three...
make to each otner H Princeton Bank and the XYZ Manufacturing Corp. enter into the following five-year 8 swap with a notional amount of $100 million and the following terms: every year for the next five years, Princeton Bank agrees to pay XYZ Manufacturing 6 % per year and receive from XYZ Manufacturing LIBOR. What type of swap is it? b. In the first year payments are to be exchanged, suppose that LIBOR is 3%.What is the amount of the...
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