Marsha takes out a loan for 20,000. She is to repay the loan by level monthly...
Marsha takes out a loan for 20,000. She is to repay the loan by level monthly payments of 1500 with the final payment possibly being less than the previous payments. The nominal interest rate is 12% convertible monthly. Let n be the number of payments and X be the amount of the final payment. (a) Determine n. (b) Determine X
Homework Answers
Using financial calculator
PV=-20000
PMT=1500
I/Y=12%/12
FV=0
CPT N=14.38151613
So, total number of payments=15
X=20000*(1+12%/12)^15-1500/(12%/12)*((1+12%/12)^14-1)*(1+12%/12)=574.0358019
Add Answer to:
Marsha takes out a loan for 20,000. She is to repay the loan by
level monthly...
Theory of Interest: Sally takes out a $7,000 loan which requires 60 equal monthly payments starting...
Theory of Interest: Sally takes out a $7,000 loan which requires 60 equal monthly payments starting at the end of the first month. The nominal annual interest rate is 8% convertible monthly. She arranges to make no payments for the first five months and then make the same payments she would have made plus an extra payment at the end of the 60th month. How much will this balloon payment be? Answer: $1,178.41. If you are using Excel worksheets, please...
Elaine takes out a $100,000 mortgage on December 1, 1997. Elaine will repay the mortgage over...
Elaine takes out a $100,000 mortgage on December 1, 1997. Elaine will repay the mortgage over 20 years with level monthly payments at an effective annual interest rate of 8%. The first payment is due January 1, 1998. After making her 120th payment, Elaine does not make any new payments for the entire next year. Elaine starts making revised monthly payments, of amount P, beginning January 1, 2009. The amount Pis such that Elaine will pay off the loan in...
A person takes out a loan for $25000. The payback schedule is monthly payments for 4...
A person takes out a loan for $25000. The payback schedule is monthly payments for 4 years at 5% nominal annual interest compounded monthly. What is the monthly payment for this loan?
Jared borrowed $20,000 with a promise to repay the loan in 6 years with a uniform...
Jared borrowed $20,000 with a promise to repay the loan in 6 years with a uniform monthly payment and a single payment of $2,000 at the end of six years at a nominal interest rate of 12% per year.A) What is the amount of each payment? B) What is the amount of interest paid in the first payment? C) What will be the loan balance immediately after the 48th payment? D) What is semi annually effective interest rate?
Vanna has just financed the purchase of a home for $200 000. She agreed to repay the loan by making equal monthly blended payments of $3000 each at 4%/a, compounded monthly. (14 marks) Create an amortization table using a Microsoft Excel spreadsheet. In y
Vanna has just financed the purchase of a home for $200 000. She agreed to repay the loan by making equal monthly blended payments of $3000 each at 4%/a, compounded monthly. a. Create an amortization table using a Microsoft Excel spreadsheet. In your answer include all the formulas used.b.How long will it take to repay the loan?c. How much will be the final payment?d. Determine how much interest she will pay for her loan.e. Use Microsoft Excel to graph the amortization...
Janet buys a $20,000 car. Prevailing market rates are nominal 8% annual, convertible monthly. The dealership...
Janet buys a $20,000 car. Prevailing market rates are nominal 8% annual, convertible monthly. The dealership offers her the choice of a rebate upon purchase of the car for cash, or alternatively, Janet can make no down payment and 60 monthly payments based on a nominal 2.5% annual interest, convertible monthly. The first payment would be due one month after the purchase of the car. The amount of the rebate is set so that the dealership is indifferent as to...
4-103. You repay a student loan of $20,000 in equal monthly installments over 5 years at a nominal interest rate...
4-103. You repay a student loan of $20,000 in equal monthly installments over 5 years at a nominal interest rate of 24%, compounded on a monthly basis. The interest rate remains constant over this entire period of time. What is the monthly repayment amount? (4.15)
3. Lynn borrows $5,000 at 15%/year compounded monthly. She wishes to repay the loan with 12...
3. Lynn borrows $5,000 at 15%/year compounded monthly. She wishes to repay the loan with 12 end-of- month payments. She wishes to make her first payment 3 months after receiving the $5,000. She also wishes that, after the first payment, the size of each payment be 10% greater than the previous payment. What is the size of her sixth payment?
A bank customer takes out a loan of 500 with a 16% nominal interest rate convertible quarterly. The customer makes paym...
A bank customer takes out a loan of 500 with a 16% nominal interest rate convertible quarterly. The customer makes payments of 20 at the end of each quarter. Calculate the amount of principal in the fourth payment. There is not enough information to calculate the amount of principal.
Barbara borrows $3000. She agrees to make monthly interest payments on the loan and will build...
Barbara borrows $3000. She agrees to make monthly interest payments on the loan and will build up a sinking fund with monthly deposits to repay the principal with a single payment 19 months from now. If the interest being charged on the loan is j12 = 8.5% and the interest being earned on the sinking fund is j12 = 5.4%, what is the monthly cost of the debt for Barbara?
Elaine takes out a $100,000 mortgage on December 1, 1997. Elaine will repay the mortgage over 20 years with level monthly payments at an effective annual interest rate of 8%. The first payment is due January 1, 1998. After making her 120th payment, Elaine does not make any new payments for the entire next year. Elaine starts making revised monthly payments, of amount P, beginning January 1, 2009. The amount Pis such that Elaine will pay off the loan in...
4-103. You repay a student loan of $20,000 in equal monthly installments over 5 years at a nominal interest rate of 24%, compounded on a monthly basis. The interest rate remains constant over this entire period of time. What is the monthly repayment amount? (4.15)
3. Lynn borrows $5,000 at 15%/year compounded monthly. She wishes to repay the loan with 12 end-of- month payments. She wishes to make her first payment 3 months after receiving the $5,000. She also wishes that, after the first payment, the size of each payment be 10% greater than the previous payment. What is the size of her sixth payment?
A bank customer takes out a loan of 500 with a 16% nominal interest rate convertible quarterly. The customer makes payments of 20 at the end of each quarter. Calculate the amount of principal in the fourth payment. There is not enough information to calculate the amount of principal.
Most questions answered within 3 hours.
-
You plan to save $5,700 per year for the next 10 years. After
the last deposit,...
asked 28 minutes ago -
On January 1, 2019, ABC Corp. borrowed $81,000 by signing an
installment loan. The loan will be...
asked 32 minutes ago -
Enzyme X exhibits maximum activity at pH = 5.25. X shows a sharp
decrease in its...
asked 47 minutes ago -
Postulate a reason for why so many aliphatic amino acids are
essential.
asked 46 minutes ago -
Three samples were taken of 4 different dog food bags and their
weights were recorded:
Sample/Observation...
asked 49 minutes ago -
The Beatles had 27 number one hits; a radio station asks
listeners to send in a...
asked 47 minutes ago -
Help with Java Program Please
Create a simple graph class. The graph class should have the...
asked 48 minutes ago -
Which of the following statements is true regarding the nature
of culture?
A.We are born with...
asked 1 hour ago -
(a) 2
NO2(g) à 2
NO(g) +
O2(g)
The rate law for this reaction
is 2nd...
asked 1 hour ago -
Write the overall reaction for the RedOx
reaction (below) when it occurs in an acidic environment....
asked 1 hour ago -
Two forces are acting on an object. Force 1 on the object is 6.0
N and...
asked 1 hour ago -
You are planning for retirement. You plan to work for 20 years.
Starting a year from...
asked 1 hour ago