Ans C.
YEAR 0 | YEAR 1 | YEAR 2 | YEAR 3 | YEAR 4 | YEAR 5 | YEAR 6 |
-10300 | $ 2,040 | $ 2,040 | $ 2,040 | $ 2,040 | $ 2,040 | $ 2,040 |
A lender lends $10,300, which is to be repaid in annual payments of $2,040 for 6...
QUESTION 6 An investment will pay you $120 in one year and $200 in two years. If the interest rate is 4%, what is the present value of these cash flows? 1. A.$304.91 B. $307.69 C.S300.29 D. $320.00 C C AY QUESTION 13 1. A lender lends $18,600, which is to be repaid in annual payments of $3100 for 6 years. Which of the following shows the timeline of the loan from the lender's perspective? r A.1 Year 1 YearYear...
a lender invests 20000 to make a loan which will be repaid with 3 annual end of year payments of 8000. what is his yield on this investment?
A loan of 100,000 is to be repaid in 4 level annual payments starting one year after the loan date. For the first 2 years, the annual interest rate is 8%; for the last 2 years, the annual interest rate is 4%. Find the annual payment and complete the loan amortization table. t Payment Interest Due Principal Repaid Outstanding Balance 0 100,000 1 2 3 4
Explain without excel
(3) An amortized loan is repaid with annual payments which start at $400 at the end of the first year and increase by $45 each year until a payment of $1,480 is made, after which they cease. If interest is 4% effective, find the amount of principal in the fourteenth payment.
An amortized loan is repaid with annual payments which start at $550 at the end of the first year and increase by $ 50 each year until a payment of $ 2,000 is made, after which they cease. If interest rate is 4% effective, find the amount of principal in the tenth payment. would prefer to understand the financial mathematics behind obtaining the solution, not using excel spreadsheet or financial calculator online
A loan of 16,000 is repaid by 8 annual payments starting 1 year after the loan is made. The amount of the first 2 payments is X and the amount of the last 6 payments is 2X. The effective annual interest rate is 6%. Find: a. X. b. OB7 providing formulas for both the retrospective and prospective calculation approaches.
** USE FORMULA TO SOLVE THIS PROBLEM (NO EXCEL PLEASE!!!)
(3) An amortized loan is repaid with annual payments which start at $400 at the end of the first year and increase by $45 each year until a payment of $1,480 is made, after which they cease. If interest is 4% effective, find the amount of principal in the fourteenth payment
7. What is the future value of a 25-year ordinary annuity with annual payments of $6,000, evaluated at a 10 percent interest rate? (Annuity, saving for your retirement) 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 cach 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....
You currently have a one-year-old loan outstanding on your car. You make monthly payments of $500. You have just made a payment. The loan has four years to go (i.e., it had an orig of five years). Show the timeline from your perspective. How would the timeline differ if you created it from the bank's perspective? Show the timeline from your perspective. (Select the best choice below.) O A. Month 0 1 2 3 4 48 Cash Flow $500 $500...
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...