A twenty-year loan of $25000 is negotiated with the borrower agreeing to repay principal and interest...
A twenty-year loan of $25000 is negotiated with the borrower agreeing to repay principal and interest at 5%. A level payment of $1500 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 of 4%. (This is the amount for replacement capital). What is the lender's yield rate on this entire investment?
Answer is 4.78740%, Use formulas, do not show me pictures of excel forms.
Homework Answers
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A twenty-year loan of $25000 is negotiated with the borrower
agreeing to repay principal and interest...
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...
answer :4.78740% please no excel or actuarial calculator 4) A twenty-year loan of $25,000 is negotiated...
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...
Please post with mathematical formulas please, no an excel sheet 2. The lender of a loan...
Please post with mathematical formulas please, no an excel
sheet
2. The lender of a loan of 175000 receives interest payments at the end of each year for 25 years at an effective annual interest rate of i, and in addi tion, will receive a lump-sum repayment of the principal along with the 25th interest payment. The borrower will pay the annual interest to the lender and accumulate the 175000 by making 25 level annual deposits at the end of...
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.
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...
A loan is negotiated with the lender agreeing to accept $8, 000 after 1 year, $9,...
A loan is negotiated with the lender agreeing to accept $8, 000 after 1 year, $9, 000 after 2 years, and $20, 000 after four years in full repayment of the loan. The loan is renegotiated so that the borrower makes a single payment of $37, 000 at time T and this results in the same total present value of payments when calculated using an annual effective rate of 7.13%. Find T.
thumbs up for correct solution 10. Anita borrows 540,000 at annual effective interest rate 3%. She repays this loan by paying off only the interest due at the end of each year to the lender and depo...
thumbs up for correct solution
10. Anita borrows 540,000 at annual effective interest rate 3%. She repays this loan by paying off only the interest due at the end of each year to the lender and depositing a level amount Q at the end of each year into a sinking fund account paying 6% APY. The goal is to accumulate the full balance of the loan amount in the sinking fund at the end of 10 years. a. Find the...
A lender providing a loan of $7 million requires semi-annual payment of interest at a nominal...
A lender providing a loan of $7 million requires semi-annual payment of interest at a nominal rate of 7.9% per year, and repayment of the $7 million principal at the end of 13 years. The borrower plans to accumulate that principal for repayment at the end of 13 years using level semi-annual deposits into a sinking fund that earns interest at a nominal rate of 3.2% per year when compounded semiannually. What is the borrower's total cash outlay every 6...
A lender providing a loan of $8.5 million requires semi-annual payment of interest at a nominal...
A lender providing a loan of $8.5 million requires semi-annual payment of interest at a nominal rate of 6.4% per year, and repayment of the $8.5 million principal at the end of 11 years. The borrower plans to accumulate that principal for repayment at the end of 11 years using level semi-annual deposits into a sinking fund that earns interest at a nominal rate of 5.9% per year when compounded semiannually. What is the borrower’s total cash outlay every 6...
RM60,000 is borrowed for 12 years at 5% compounded annually. The borrower does not pay interest c...
RM60,000 is borrowed for 12 years at 5% compounded annually. The borrower does not pay interest currently and will pay all accrued interest at the end of 12 years together with the principal. (a) Find the amount annual sinking fund deposit necessary to liquidate the loan at the end of 12 years if the sinking fund earns 3% yearly compounding and the borrower make first payment immediately. (b) Prepared a sinking fund schedule. Ans: (a) RM 7,371.25 (PLS DUN ANSWER...
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...
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...
Please post with mathematical formulas please, no an excel
sheet
2. The lender of a loan of 175000 receives interest payments at the end of each year for 25 years at an effective annual interest rate of i, and in addi tion, will receive a lump-sum repayment of the principal along with the 25th interest payment. The borrower will pay the annual interest to the lender and accumulate the 175000 by making 25 level annual deposits at the end of...
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.
thumbs up for correct solution
10. Anita borrows 540,000 at annual effective interest rate 3%. She repays this loan by paying off only the interest due at the end of each year to the lender and depositing a level amount Q at the end of each year into a sinking fund account paying 6% APY. The goal is to accumulate the full balance of the loan amount in the sinking fund at the end of 10 years. a. Find the...
A lender providing a loan of $7 million requires semi-annual payment of interest at a nominal rate of 7.9% per year, and repayment of the $7 million principal at the end of 13 years. The borrower plans to accumulate that principal for repayment at the end of 13 years using level semi-annual deposits into a sinking fund that earns interest at a nominal rate of 3.2% per year when compounded semiannually. What is the borrower's total cash outlay every 6...
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