Compute the specified quantity A $3,500 loan, taken now, with a simple interest rate of 5%...
A $7,500 demand loan was taken out on March 4 at a fixed interest rate of 7.72% with fixed monthly payments of $1,200. The first monthly repayment is due April 4 and the 4th of every month thereafter. Prepare a full repayment schedule for the loan.
5(a) A company is discussing a $0.5 million loan with a bank. The interest rate is 12% compounded annually and the repayment period is 5 years. The bank is offering two options for loan repayment: Option A: Payments are to be received in equal installments at the end of each year Option B: Interest is to be received on a yearly basis and the Principal is to be received at the end All loan repayment items are end-of-year payments Which...
Suppose C&Y restaurant borrow a 5-year loan of $85,000 at an annual interest rate of 5%. The loan agreement states that the repayment of principal and the loan interest has to be paid by the end of each year. The instalment of each repayment is fixed amount throughout the loan period. You are instructed to construct an amortization schedule for loan repayment including beginning balance, annual payment, interest and ending balance.
1. What is the interest earned from a savings of P10,000 at a simple interest rate of 107 per year for 5 years? (5 points) 2. How long does a man need to invest P5,000 to be P9,000 at an interest rate of 10 compounded annually? (5 points) 3. What is the rate of interest, compounded monthly charged to an investment of P2 000 that pays P1, 205 per month for 2 years. (5 points) 4. How much annual deposit...
A loan is made for five years at a simple interest rate of 12% per annum. What is the equivalent annual effective rate of discount during the fourth year of the loan?
5(a) A company is discussing a $0.5 million loan with a bank. The interest rate is 12% compounded annually and the repayment period is 5 years. The bank is offering two options for loan repayment: Option A: Payments are to be received in equal installments at the end of each year. Option B: Interest is to be received on a yearly basis and the Principal is to be receivedat the end. All loan repayment items are end-of-year payments. Which options...
You have agreed to loan the owner of a library $5000 for 5 years at a simple interest rate of 8% per year. 1. How much interest will you receive from the loan? 2. How much will the library owner pay you at the end of 5 years? You have agreed to loan the owner of a library $5000 for 5 years at a simple interest rate of 8% per year. 1. How much interest will you receive from the...
Find the interest paid on a loan of $2,200 for two years at a simple interest rate of 11% per year. The interest on the loan is $17
Calculate the effective annual interest rate for a $100,000 simple interest loan with 10% interest due at the end of the year and 10% compensating balance. Calculate the effective annual interest rate for a $100,000 discounted loan with 10% interest and 10% compensating balance.
8. Calculating an installment loan payment using simple interest Calculating the Loan Payment on a Simple-Interest Installment Loan Instaliment loans allow borrowers to repay the loan with periodic payments over time. They are more common than single-payment loans because it is easier for most people to pay a fixed amount periodically (usually monthly) than budget for paying one big amount in the future. Interest on installment loans may be computed using the simple interest method or the add-on method. For...