Homework Answers
| Loan Amount | 500,000 | ||
| Number of Payments N | 40 | bi-annual payment | |
| Anuual Int rate | 5% | ||
| Repayment Amounts | 19,918.117 | =-PMT(Annual Rate/2,N,Loan Amount) | Answer a |
| =-PMT(5%/2,40,500000) | |||
| Annual Rate | 5% | ||
| Monthly rate | 0.417% | ||
| Annualized Rate | 5.116% | ||
| Repayment Amounts | 20,113.482 | =-PMT(Annual Rate/2,N,Loan Amount) | Answer b |
| =-PMT(5.116%/2,40,500000) | |||
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2. You take out a home loan of $500 000, which will be repaid in 40...
2. You take out a home loan of $500 000, which will be repaid in 40 level payments at the end of each six-month period,...
2. You take out a home loan of $500 000, which will be repaid in 40 level payments at the end of each six-month period, starting in six months. The annual interest rate is 5% (a) Compute the size of the repayments if interest is compounded every six months. (b) Suppose instead that interest is compounded monthly but repay- ments are still made every six months. Determine the equivalent annual interest rate for payments made every six months and find...
You take out a home loan of $500 000, which will be repaid in 40 level payments at the end of each six-month period, sta...
You take out a home loan of $500 000, which will be repaid in 40 level payments at the end of each six-month period, starting in six months. The annual interest rate is 5%. (a) Compute the size of the repayments if interest is compounded every six months. (b) Suppose instead that interest is compounded monthly but repayments are still made every six months. Determine the equivalent annual interest rate for payments made every six months and find the size...
1. You won $100 000 in a lottery and you want to set some of that...
1. You won $100 000 in a lottery and you want to set some of that sum aside for 10 years. After 10 years, you would like to receive $2400 at the end of every 3 months for 8 years. How much of your winnings must you set aside if interest is 5.5% compounded quarterly? 2. A sum of money is deposited at the end of every month for 10 years at 7.5% compounded monthly. After the last deposit, interest...
Samuel and Sandra Sharp wish to borrow $600,000 to buya home. The loan from the Highway...
Samuel and Sandra Sharp wish to borrow $600,000 to buya home. The loan from the Highway Bank requires equal monthly repayments over 20 years, and carries an interest rate of 5-1 % per annum, compounded monthly. The first repayment is due at the end of one month after the loan proceeds are received. You are required to calculate the following. i) The effective annual interest rate on the above loan (show as a percentage correct to 3 decimal places). li)...
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?
Please post with mathematical formulas please, not an excel sheet! 1. Mr. X is repaying a loan by monthly payments of $1...
Please post with mathematical
formulas please, not an excel sheet!
1. Mr. X is repaying a loan by monthly payments of $146.75 at a nominal annual rate of 9% compounded monthly. Immediately after one of the pay- ments is made, when Mr. X has still 50 payments ahead of him, the lender lowers the interest rate to 7.8% nominal annual rate compounded monthly. Mr. X chooses to keep the same monthly payments, except the last payment that is larger than...
Problem 3 (Required, 25 marks) Recently, Mr. A has 2 outstanding loans: • Loan A -...
Problem 3 (Required, 25 marks) Recently, Mr. A has 2 outstanding loans: • Loan A - He needs to repay $1720 at the end of every month and there are 36 repayments remaining. The loan charges interest at an annual nominal interest rate 12% compounded monthly Loan B - He needs to repay an amount X at the end of every month and there are 36 repayments remaining. The loan charges interest at an annual nominal interest rate 18% compounded...
A loan of $25, 000 is paid off in semi-annual payments over a four year period. ...
A loan of $25, 000 is paid off in semi-annual payments over a four year period. Interest is 6.2% compounded quarterly. What is the size of the payment made at the end of every six months ? (Please use the financial calculator method (BAII) by showing inputs in the financial calculator)
all the information are provided 2) A debt of $32 000 is repaid by payments of...
all the information are provided
2) A debt of $32 000 is repaid by payments of $2950 made at the end of every six months. Interest is 8.28% compounded quarterly. a. What is the number of payments needed to retire the debt? b. What is the cost of the debt for the first five years? c. What is the interest paid in the 10th payment period? d. Construct a partial amortization schedule showing details of the first five payments.
A loan of $ 8500 is to be repaid in 25 equal monthly installments with the...
A loan of $ 8500 is to be repaid in 25 equal monthly installments with the first one paid seven months after the loan is made. The nominal annual interest rate is 8 % compounded bimonthly. Determine the amount of the monthly payment.
2. You take out a home loan of $500 000, which will be repaid in 40 level payments at the end of each six-month period, starting in six months. The annual interest rate is 5% (a) Compute the size of the repayments if interest is compounded every six months. (b) Suppose instead that interest is compounded monthly but repay- ments are still made every six months. Determine the equivalent annual interest rate for payments made every six months and find...
1. You won $100 000 in a lottery and you want to set some of that sum aside for 10 years. After 10 years, you would like to receive $2400 at the end of every 3 months for 8 years. How much of your winnings must you set aside if interest is 5.5% compounded quarterly? 2. A sum of money is deposited at the end of every month for 10 years at 7.5% compounded monthly. After the last deposit, interest...
Samuel and Sandra Sharp wish to borrow $600,000 to buya home. The loan from the Highway Bank requires equal monthly repayments over 20 years, and carries an interest rate of 5-1 % per annum, compounded monthly. The first repayment is due at the end of one month after the loan proceeds are received. You are required to calculate the following. i) The effective annual interest rate on the above loan (show as a percentage correct to 3 decimal places). li)...
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?
Please post with mathematical
formulas please, not an excel sheet!
1. Mr. X is repaying a loan by monthly payments of $146.75 at a nominal annual rate of 9% compounded monthly. Immediately after one of the pay- ments is made, when Mr. X has still 50 payments ahead of him, the lender lowers the interest rate to 7.8% nominal annual rate compounded monthly. Mr. X chooses to keep the same monthly payments, except the last payment that is larger than...
Problem 3 (Required, 25 marks) Recently, Mr. A has 2 outstanding loans: • Loan A - He needs to repay $1720 at the end of every month and there are 36 repayments remaining. The loan charges interest at an annual nominal interest rate 12% compounded monthly Loan B - He needs to repay an amount X at the end of every month and there are 36 repayments remaining. The loan charges interest at an annual nominal interest rate 18% compounded...
all the information are provided
2) A debt of $32 000 is repaid by payments of $2950 made at the end of every six months. Interest is 8.28% compounded quarterly. a. What is the number of payments needed to retire the debt? b. What is the cost of the debt for the first five years? c. What is the interest paid in the 10th payment period? d. Construct a partial amortization schedule showing details of the first five payments.
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