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 lender invests 20000 to make a loan which will be repaid with 3 annual end...
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...
Problem 3. A loan of $10,000 is being repaid with payments of $1,000 at the end of each year for 20 years. If each payment is immediately reinvested at 5% effective, find the effective annual rate of interest earned by the lender over the 20-year period.
A 15 year loan of $1000 is repaid with payments at the end of each year. Each of the first ten payments is 120% of the amount of interest due. Each of the last five payment is $X. The lender charges interest at an annual effective rate of 8%. Calculate X.
actsci questions, please show work
10. 8 A loan of $20000 is to be repaid by annual payments of $4000 per ycar (at the end of cach ycar) for the first 5 ycars and payments of $4500 per ycar thercafter for as long as nccessary. Determine the total number of payments and the amount of the smaller final payment made onc ycar after the last rogular payment. Assume an annual cffective rate of 7.5%
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 is repaid with equal annual payments of $350 at the end of each year for 10 years. AEIR=5% for the first five years and 8% thereafter. What must have been the amount of this loan?
A lender lends $10,300, which is to be repaid in annual payments of $2,040 for 6 years. Which of the following shows the timeline of the loan from the lender's perspective? O A Year 1 0 Year 2 $2,040 Year 3 $2,040 Year 4 $2,040 Year 5 $2,040 Year 6 $2.040 B. Year 0 Year 1 - $10,300 $2,040 Year 2 Year 3 $4,040 $6,040 Year 4 $8,040 Year 5 Year 6 $10,040 $12,040 Year 0 Year 1 - $10,300...
A loan is repaid with annual year-end payments of 15,000. The effective rate of interest is 3%. How much interest is paid in the final payment? Note: you are not given the original amount of the loan nor are you given the number of payments. This problem, however, can be solved.
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.
You borrow $150,000. The loan is structured as an amortized loan to repaid over 4 years with annual (end-of-period) payments of $41909.42 per year. The lender is charging you a rate of 4.6% APR. In the second year, how much interest is paid?