You are an officer of a commercial bank and wish to sell one of the bank's...
You are an officer of a commercial bank and wish to sell one of the bank's assets—a car loan—to another bank. Using the following equation, compute the price you expect to receive for the loan if the annual interest rate is 6 percent, the car payment is $430 per month, and the loan term is five years. Instructions: Enter your response as a whole number. PV = (Ci)[1−1(1+i)n] = $
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You are an officer of a commercial bank and wish to sell one of
the bank's...
Assumption: You work as a commercial loan officer in a local bank. The president of a...
Assumption: You work as a commercial loan officer in a local bank. The president of a small-to-medium sized fast-food restaurant chain, with 250 employees in five locations, comes into your bank and asks for a business loan of $400,000 to help fund his expansion plans for building two additional restaurant locations. Question(s): 1-What would be your concerns as the loan officer? 2-What questions would you ask and what financial documents might you request of him/her? 3- Explain the importance of...
Assumption: You work as a commercial loan officer in a local bank. The president of a...
Assumption: You work as a commercial loan officer in a local bank. The president of a small-to-medium sized fast-food restaurant chain, with 250 employees in five locations, comes into your bank and asks for a business loan of $400,000 to help fund his expansion plans for building two additional restaurant locations. Question(s): What would be your concerns as the loan officer? What questions would you ask and what financial documents might you request of him/her? Chapter 3 discusses differences between...
how doni do this in excel and what is the interest rate? Suppose that you wish to purchase a car and that your bank...
how doni do this in excel and what is the interest rate?
Suppose that you wish to purchase a car and that your bank is offering to you a loan. You wish to explore the nature of this loan and the payments that you would have to make given certain circumstances such as the amount that you borrow. Fortunately, Excel offers a function (PMT) that calculates the payment for a loan based on constant payments and a constant interest rate....
Suppose you wish to buy a house costing $200,000. You will put a down payment of...
Suppose you wish to buy a house costing $200,000. You will put a down payment of 20% of the purchase price and borrow the rest from a bank for 30 years at a fixed rate r compounded monthly. If you wish your monthly mortgage payment to be $1,500 or less, what is the maximum annual interest rate for the mortgage loan? If you could work out the steps that would be great. I am having trouble simplifying the equation and...
A commercial bank will loan you $47,497 for 8 years to buy a car. The loan...
A commercial bank will loan you $47,497 for 8 years to buy a car. The loan must be repaid in equal monthly payments at the end of the month. The annual interest rate on the loan is 10.16 percent of the unpaid balance. What is the amount of the monthly payments?
a commercial bank will loan you 54567 for 4 years to buy a car. the loan...
a commercial bank will loan you 54567 for 4 years to buy a car. the loan must be repaid in equal monthly payments at the end of the month . the annual interest rate on the loan is 5-98% of the unpaid balance. what is the amount of the monthly payments?
You need a $10,000 car loan and are talking to two different banks. i. Big Bank...
You need a $10,000 car loan and are talking to two different banks. i. Big Bank offers you a $10,000 auto loan requiring 48 monthly payments of $275, paid at the end of each month. What is the APR of the loan? What is the effective annual rate? 11. Little Bank's loan has 4 annual year-end instalments, each equal to 12 times the Big Bank monthly loan payments, e.g. Payment =12*275 = $3300. Should you accept Little Bank's loan? (Ctrl)...
Prob Set 2.7 6. (7 points) There is a commercial bank whose only assets are a...
Prob Set 2.7 6. (7 points) There is a commercial bank whose only assets are a loan portfolio of $100 million of30-year fixed-rate mortgages(with monthly payments), and whose only liability is a single, $90 million 1-year certificate of deposit (CD),interest payable annually. The current value of the bank is therefore $10m ($100m in Assets - $90m in Liabilities). The 30-year mortgages have an average annual fixed interest rate of 5.60%, and the CD has an interest rate of 3.20%. Show...
A commercial bank will loan you $27,817 for 3 years to buy a car. The loan...
A commercial bank will loan you $27,817 for 3 years to buy a car. The loan must be repaid in equal monthly payments at the end of the month. The annual interest rate on the loan is 13.32 percent of the unpaid balance. What is the amount of the monthly payments? Round the answer to two decimal places.
A commercial bank will loan you $33,732 for 4 years to buy a car. The loan...
A commercial bank will loan you $33,732 for 4 years to buy a car. The loan must be repaid in equal monthly payments at the end of the month. The annual interest rate on the loan is 7.29 percent of the unpaid balance. What is the amount of the monthly payments? Round the answer to two decimal places.
Assumption: You work as a commercial loan officer in a local bank. The president of a small-to-medium sized fast-food restaurant chain, with 250 employees in five locations, comes into your bank and asks for a business loan of $400,000 to help fund his expansion plans for building two additional restaurant locations. Question(s): What would be your concerns as the loan officer? What questions would you ask and what financial documents might you request of him/her? Chapter 3 discusses differences between...
how doni do this in excel and what is the interest rate?
Suppose that you wish to purchase a car and that your bank is offering to you a loan. You wish to explore the nature of this loan and the payments that you would have to make given certain circumstances such as the amount that you borrow. Fortunately, Excel offers a function (PMT) that calculates the payment for a loan based on constant payments and a constant interest rate....
You need a $10,000 car loan and are talking to two different banks. i. Big Bank offers you a $10,000 auto loan requiring 48 monthly payments of $275, paid at the end of each month. What is the APR of the loan? What is the effective annual rate? 11. Little Bank's loan has 4 annual year-end instalments, each equal to 12 times the Big Bank monthly loan payments, e.g. Payment =12*275 = $3300. Should you accept Little Bank's loan? (Ctrl)...
A commercial bank will loan you $27,817 for 3 years to buy a car. The loan must be repaid in equal monthly payments at the end of the month. The annual interest rate on the loan is 13.32 percent of the unpaid balance. What is the amount of the monthly payments? Round the answer to two decimal places.
A commercial bank will loan you $33,732 for 4 years to buy a car. The loan must be repaid in equal monthly payments at the end of the month. The annual interest rate on the loan is 7.29 percent of the unpaid balance. What is the amount of the monthly payments? Round the answer to two decimal places.
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