determine the annual payment of 5% compounded annually to repay a loan of $ 100,000,000 in...
determine the annual payment of 5% compounded annually to repay a loan of $ 100,000,000 in 20 years please show every single step!!Homework Answers
Amount of Loan = $100,000,000
Annual Interest Rate = 5%
Number of Payments = 20
Let Annual Payment be $x
$100,000,000 = $x/1.05 + $x/1.05^2 + … + $x/1.05^19 +
$x/1.05^20
$100,000,000 = $x * (1 - (1/1.05)^20) / 0.05
$100,000,000 = $x * 12.462210
$x = $8,043,622.17
Annual Payment = $8,043,622.17
Add Answer to:
determine the annual payment of 5% compounded annually to repay a loan of $ 100,000,000 in...
Karmen borrowed $5378.00 compounded semi-annually to help finance her education. She contracted to repay the loan i...
Karmen borrowed $5378.00 compounded semi-annually to help finance her education. She contracted to repay the loan in semi-annual payments of $259.00 each. If the payments are due at the end of every 6 months and interest is 6% compounded semi-annually, how long will Karmen have to make semi-annual payments? State your answer in years and months (from 0 to 11 months) month(s). year(s) and Karmen will have to make payments for
Karmen borrowed $5378.00 compounded semi-annually to help finance her...
3.22 What equal annual payment series is required to repay the following present amounts? (a) $10,000...
3.22 What equal annual payment series is required to repay the following present amounts? (a) $10,000 in 5 years at 5% interest compounded annually (b) $5500 in 4 years at 9.7% interest compounded anngally (e) $8500 in 3 years at 2.5% interest compounded andually (d) $30,000 in 20 years at 8,5% interest compounded annually
You borrow $100,000 today. You will repay the loan with 5 equal annual payments starting next...
You borrow $100,000 today. You will repay the loan with 5 equal annual payments starting next year. Each payment is equal to $20,000 In addition to these payments, you will make a "balloon payment" in year 5 . If the interest rate on the loan is 2% APR, compounded annually, how big is the balloon payment? Group of answer choices $6,304 $6,960 $5,731 $6,327
1) Carlos has borrowed $8,000 for 8 years at 6% compounded semi-annually. He will repay interest...
1) Carlos has borrowed $8,000 for 8 years at 6% compounded semi-annually. He will repay interest every 6 months plus principal at maturity. He will also deposit X every 6 months into a sinking fund paying 5% compounded semi-annually to pay off the principal at maturity. a) Find X. Carlos goes bankrupt at the end of year 6, just after making his interest payment and sinking fund deposit. The bank confiscates the money in the sinking fund but gets no...
A borrower had a loan of $30,000.00 at 5% compounded annually, with 7 annual payments. Suppose...
A borrower had a loan of $30,000.00 at 5% compounded annually, with 7 annual payments. Suppose the borrower paid off the loan after 4 years. Calculate the amount needed to pay off the loan. The amount needed to pay off this loan after 4 years is $ (Round to the nearest cent as needed.)
A company must repay the bank a single payment of $21,000 cash in 3 years for...
A company must repay the bank a single payment of $21,000 cash in 3 years for a loan it entered into. The loan is at 10% interest compounded annually. The present value of 1 (single sum) at 10% for 3 years is .7513. The present value of an annuity (series of payments) at 10% for 3 years is 2.4869. The present value of the loan (rounded) is: $15,777. $21,000. $23,707. $8,444. $52,225.
A demand loan of $6000.00 is repaid by payments of $3000.00 after two years, $3000.00 after four years, and a final payment after eight years. Interest is 5% compounded semi-annually for the first two years, 6% compounded annually for the next two years,
A demand loan of $6000.00 is repaid by payments of $3000.00 after two years, $3000.00 after four years, and final payment after eight years. Interest is 5% compounded semi-annually for the first two years, 6% compounded annually for the next two years, and 6% compounded semi-annually thereafter. What is the size of the final payment?
(4 points) Consider a 2-year mortgage loan that is paid back semi-annually. The semi-annually compounded mortgage rate is 5%. The principal is $1000. a) (1 point) Calculate the semi-annual coupon. b)...
(4 points) Consider a 2-year mortgage loan that is paid back semi-annually. The semi-annually compounded mortgage rate is 5%. The principal is $1000. a) (1 point) Calculate the semi-annual coupon. b) (3 points) How much of the coupon is interest payment and how much is principal repayment in 0.5 year, in 1 year, in 1.5 years, and in 2 years? Also calculate the (post- coupon) notional value of the outstanding principle for these four dates.
(4 points) Consider a 2-year...
Question 3 (1 point) A loan of $32,000 at 6% compounded annually is to be repaid...
Question 3 (1 point) A loan of $32,000 at 6% compounded annually is to be repaid by equal payments at the end of every month for three years. How much interest will be included in the 19th payment? 4 poing A home improvement loan is to be repaid by equal monthly payments for six years. The interest rate is 5.4% compounded monthly and the amount borrowed is $33,500. How much interest will be included in the first payment?
Loan payment Determine the equal, annual, end-of-year payment required each year over the life of the...
Loan payment Determine the equal, annual, end-of-year payment required each year over the life of the loan shown in the following table to repay it fully during the stated term of the loan. (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Principal Interest rate Term of loan (years) $23,000 16% 12 The amount of the equal, annual, end-of-year payment, CF, is $ (Round to the...
Karmen borrowed $5378.00 compounded semi-annually to help finance her education. She contracted to repay the loan in semi-annual payments of $259.00 each. If the payments are due at the end of every 6 months and interest is 6% compounded semi-annually, how long will Karmen have to make semi-annual payments? State your answer in years and months (from 0 to 11 months) month(s). year(s) and Karmen will have to make payments for
Karmen borrowed $5378.00 compounded semi-annually to help finance her...
3.22 What equal annual payment series is required to repay the following present amounts? (a) $10,000 in 5 years at 5% interest compounded annually (b) $5500 in 4 years at 9.7% interest compounded anngally (e) $8500 in 3 years at 2.5% interest compounded andually (d) $30,000 in 20 years at 8,5% interest compounded annually
1) Carlos has borrowed $8,000 for 8 years at 6% compounded semi-annually. He will repay interest every 6 months plus principal at maturity. He will also deposit X every 6 months into a sinking fund paying 5% compounded semi-annually to pay off the principal at maturity. a) Find X. Carlos goes bankrupt at the end of year 6, just after making his interest payment and sinking fund deposit. The bank confiscates the money in the sinking fund but gets no...
A borrower had a loan of $30,000.00 at 5% compounded annually, with 7 annual payments. Suppose the borrower paid off the loan after 4 years. Calculate the amount needed to pay off the loan. The amount needed to pay off this loan after 4 years is $ (Round to the nearest cent as needed.)
(4 points) Consider a 2-year mortgage loan that is paid back semi-annually. The semi-annually compounded mortgage rate is 5%. The principal is $1000. a) (1 point) Calculate the semi-annual coupon. b) (3 points) How much of the coupon is interest payment and how much is principal repayment in 0.5 year, in 1 year, in 1.5 years, and in 2 years? Also calculate the (post- coupon) notional value of the outstanding principle for these four dates.
(4 points) Consider a 2-year...
Question 3 (1 point) A loan of $32,000 at 6% compounded annually is to be repaid by equal payments at the end of every month for three years. How much interest will be included in the 19th payment? 4 poing A home improvement loan is to be repaid by equal monthly payments for six years. The interest rate is 5.4% compounded monthly and the amount borrowed is $33,500. How much interest will be included in the first payment?
Loan payment Determine the equal, annual, end-of-year payment required each year over the life of the loan shown in the following table to repay it fully during the stated term of the loan. (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Principal Interest rate Term of loan (years) $23,000 16% 12 The amount of the equal, annual, end-of-year payment, CF, is $ (Round to the...
Most questions answered within 3 hours.
-
Oxidative phosphorylation is achieved through chemiosmotic
coupling, which turns chemical energy into osmotic potential energy
that...
asked 1 hour ago -
Hollywood Shoes would like to maintain their cash account at a
minimum level of $64,000, but...
asked 59 minutes ago -
Proteins CtrA-P, DnaA, and GcrA behave similarly to what
molecule in the Eukaryotic Cell Cycle?
asked 1 hour ago -
TRUE OR FALSE
In case of a competitive tender procedure, in the request for
quotation, the...
asked 1 hour ago -
I am a little behind please provide some explanation, will
provide thumbs up.
This question considers...
asked 1 hour ago -
Let say the utility function as U(X,Y) = lnX + Y. Show that the
marginal rate...
asked 1 hour ago -
A current of I=8.0A is flowing in a typical extension cord of
length L=3.00m. The cord...
asked 1 hour ago -
1. When balancing the equation H2SO4 (aq) + NaOH (aq) →
Na2SO4(aq) + H2O(aq), would you...
asked 1 hour ago -
Provide a definition of “classification hierarchy” and
illustrate your definition with an example of how and...
asked 1 hour ago -
1. Describe the four main green solvents. Provide one example of
the use of each solvent....
asked 1 hour ago -
International ethics focus on:
1) exploitation of labor
2)corruption
3) environmental impact
4) none of the...
asked 1 hour ago -
Costing Models You work for XYZ trucking and your boss has asked
you to figure out...
asked 1 hour ago