A $30000 loan is to be repaid in 14 years, with a sinking fund accumulated to...
A $30000 loan is to be repaid in 14 years, with a sinking fund accumulated to repay principal plus interest. The loan charges j2 = 7.2%, while the sinking fund fund earnsj2 = 10.2%. What semi annual sinking fund deposit is required?
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A $30000 loan is to be repaid in 14 years, with a sinking fund
accumulated to...
A company can borrow $760000 for 7 years by issuing bonds, on which interest is paid...
A company can borrow $760000 for 7 years by issuing bonds, on which interest is paid semi-annually at j2 = 11% and the principal is paid off using a sinking fund earning j2= 2%. The other option is to borrow $760000 from a bank and repay the loan over 7 years with equal semi-annual payments at j2 = 12%. Which option will result in a smaller periodic cost for the company? Bank loan or Sinking fund method How much will...
A 90,000 loan is repaid in 4 years at a 3.5% interest rate using the Sinking...
A 90,000 loan is repaid in 4 years at a 3.5% interest rate using the Sinking Fund method. Write down the loan depreciation table if the interest rate is 2.5%.
Problem 4 (Required, 25 marks) Recently, a company has borrowed an amount of $300,000 from the...
Problem 4 (Required, 25 marks) Recently, a company has borrowed an amount of $300,000 from the bank. The company will pay the interest payment interest due) to the bank at the end of every month until the loan principal is repaid. The bank charges interest rate at an annual nominal interest rate 10% compounded continuously. At the same time, the company makes a monthly deposit $600 into a sinking fund at the end of every month. The sinking fund earns...
A 65,000 annual payment loan is made for a term of 10 years at 7.3% interest....
A 65,000 annual payment loan is made for a term of 10 years at 7.3% interest. The lender wants only payments of interest until the end of year 10 when the 65,000 must be repaid. The borrower will make level annual year-end payments to a sinking fund earning 4.8%. Find the level sinking fund deposit and the balance in the sinking fund at time 5. find the total payment and the principal in the 6th payment.
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...
Create an amortization schedule/sinking fund schedule for the following: a. A $500,000 loan with level payments made at...
Create an amortization schedule/sinking fund schedule for the following: a. A $500,000 loan with level payments made at the end of each year for 30-years. Assume an annual effective interest rate on the loan of 4% and that the loan is repaid with the amortization method. In excel with equations listed please.
(20 points) You borrow $3000 for four years at an annual effective interest rate of i....
(20 points) You borrow $3000 for four years at an annual effective interest rate of i. The investor pays interest only on the loan at the end of each year and accumulates the amount necessary to repay the principal at the end of four years by making level payments at the end of each year into a sinking fund (an account used to accumulate money needed to pay back a debt). The sinking fund earns an annual effective interest rate...
Dominic borrows 7200 dollars today, and agrees to repay the loan by making annual interest payments...
Dominic borrows 7200 dollars today, and agrees to repay the loan by making annual interest payments to the lender, and by also accumulating a sinking fund with increasing annual deposits to repay the principal. The interest rate on the loan is 8.8 percent, and the interest paid on the sinking fund is 6.7 percent, both effective. If the loan is to be settled 15 years from now, and the sinking fund deposits increase by 7 dollars per year, what is...
Helen borrows $20000 to be repaid over 15 years with level annual payments with an annual...
Helen borrows $20000 to be repaid over 15 years with level annual payments with an annual effective interest rate of 8%. The first payment is due one year after she takes out the loan. Helen pays an additional $4000 at the end of year 9 (in addition to her normal payment). At that time (the end of year 9) she negotiates to pay off the remaining principal at the end of year 14 with a sinking fund. The sinking fund...
answer :4.78740% please no excel or actuarial calculator 4) A twenty-year loan of $25,000 is negotiated with the borrower agreeing to repay principal and interest at 5%. A level payment of $ 1 ,500 w...
answer :4.78740%
please no excel or actuarial calculator
4) A twenty-year loan of $25,000 is negotiated with the borrower agreeing to repay principal and interest at 5%. A level payment of $ 1 ,500 will apply during the first ten years, and a higher level payment will apply over the remaining ten years. Each time the lender receives a payment from the borrower, he will deposit the portion representing principal into a sinking fund with an annual effective interest rate...
Problem 4 (Required, 25 marks) Recently, a company has borrowed an amount of $300,000 from the bank. The company will pay the interest payment interest due) to the bank at the end of every month until the loan principal is repaid. The bank charges interest rate at an annual nominal interest rate 10% compounded continuously. At the same time, the company makes a monthly deposit $600 into a sinking fund at the end of every month. The sinking fund earns...
A 65,000 annual payment loan is made for a term of 10 years at 7.3% interest. The lender wants only payments of interest until the end of year 10 when the 65,000 must be repaid. The borrower will make level annual year-end payments to a sinking fund earning 4.8%. Find the level sinking fund deposit and the balance in the sinking fund at time 5. find the total payment and the principal in the 6th payment.
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...
(20 points) You borrow $3000 for four years at an annual effective interest rate of i. The investor pays interest only on the loan at the end of each year and accumulates the amount necessary to repay the principal at the end of four years by making level payments at the end of each year into a sinking fund (an account used to accumulate money needed to pay back a debt). The sinking fund earns an annual effective interest rate...
answer :4.78740%
please no excel or actuarial calculator
4) A twenty-year loan of $25,000 is negotiated with the borrower agreeing to repay principal and interest at 5%. A level payment of $ 1 ,500 will apply during the first ten years, and a higher level payment will apply over the remaining ten years. Each time the lender receives a payment from the borrower, he will deposit the portion representing principal into a sinking fund with an annual effective interest rate...
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