You have a loan outstanding. It requires making sixsix annual payments of $1,000 each at the...
You have a loan outstanding. It requires making
sixsix
annual payments of
$1,000
each at the end of the next
six
years. Your bank has offered to restructure the loan so that instead of making the
six
payments as originally agreed, you will make only one final payment in
six
years. If the interest rate on the loan is
7 %,
what final payment will the bank require you to make so that it is indifferent to the two forms of payment?
The final payment the bank will require you to make is
$nothing.
(Round to the nearest dollar.)
Homework Answers
Add Answer to:
You have a loan outstanding. It requires making
sixsix
annual payments of
$1,000
each at the...
You have a loan outstanding. It requires making eight annual payments of $4,000 each at the...
You have a loan outstanding. It requires making eight annual payments of $4,000 each at the end of the next eight years. Your bank has offered to restructure the loan so that instead of making the eight payments as originally agreed, you will make only one final payment in eight years. If the interest rate on the loan is 2%, what final payment will the bank require you to make so that it is indifferent to the two forms of...
You have a loan outstanding. It requires making four annual payments of $7,000 each at the...
You have a loan outstanding. It requires making four annual payments of $7,000 each at the end of the next four years. Your bank has offered to restructure the loan so that instead of making the four payments as originally agreed, you will make only one final payment in four years. If the interest rate on the loan is 7%, what final payment will the bank require you to make so that it is indifferent to the two forms of...
1.You have a loan outstanding. It requires making three annual payments of $ 4,000 each at...
1.You have a loan outstanding. It requires making three annual payments of $ 4,000 each at the end of the next three years. Your bank has offered to restructure the loan so that instead of making the three payments as originally agreed, you will make only one final payment in three years. If the interest rate on the loan is 4 %, what final payment will the bank require you to make so that it is indifferent to the two...
You have a loan outstanding. It requires making three annual payments at the end of the...
You have a loan outstanding. It requires making three annual payments at the end of the next three years of $2000 each. Your bank has offered to allow you to skip making the next two payments in lieu of making one large payment at the end of the loan's term in three years. If the interest rate on the loan is 6%, what final payment will the bank require you to make so that it is indifferent between the two...
You have a loan outstanding. It requires making 4 annual payments at the end of the...
You have a loan outstanding. It requires making 4 annual payments at the end of the next 4 years of $8,000 each. Your bank has offered to allow you to skip making the next 3 payments in lieu of making one large payment at the end of the loan's term in 4 years. If the interest rate on the loan is 5.23%, what final payment will the bank require you to make so that it is indifferent between the two...
You have a loan outstanding. It requires making 4 annual payments at the end of the...
You have a loan outstanding. It requires making 4 annual payments at the end of the next 4 years of $ 8 comma 000 each. Your bank has offered to allow you to skip making the next 3 payments in lieu of making one large payment at the end of the loan's term in 4 years. If the interest rate on the loan is 9.63 %, what final payment will the bank require you to make so that it is...
You borrow $100,000 on a mortgage loan. The loan requires monthly payments for the next 30...
You borrow $100,000 on a mortgage loan. The loan requires monthly payments for the next 30 years. Your annual loan rate is 4.25%. The loan is fully amortizing. What is your monthly payment? Round your answer to 2 decimal places. 2. You borrow $100,000 on a mortgage loan. The loan requires monthly payments for the next 30 years. Your annual loan rate is 4.25%. The loan is fully amortizing. What is your Month 1 interest payment? Round your answer to...
Fully amortized loan (annual payments for principal and interest with the same amount each year). Chuck...
Fully amortized loan (annual payments for principal and interest with the same amount each year). Chuck Ponzi has talked an elderly woman into loaning him $45,000 for a new business venture. She has, however, successfully passed a finance class and requires Chuck to sign a binding contract on repayment of the $45,000 with an annual interest rate of 7% over the next 20 years. Determine the cash flow to the woman under a fully amortized loan, in which Ponzi will...
Fully amortized loan (annual payments for principal and interest with the same amount each year). Chuck...
Fully amortized loan (annual payments for principal and interest with the same amount each year). Chuck Ponzi has talked an elderly woman into loaning him $40,000 for a new business venture. She has, however, successfully passed a finance class and requires Chuck to sign a binding contract on repayment of the $40,000 with an annual interest rate of 6% over the next 20 years. Determine the cash flow to the woman under a fully amortized loan, in which Ponzi will...
a. If you borrow $2,900 and agree to repay the loan in six equal annual payments...
a. If you borrow $2,900 and agree to repay the loan in six equal annual payments at an interest rate of 11%, what will your payment be? (Do not round intermediate calculations. Round your answer to 2 decimal places.) a. Amount of payment: b. What will your payment be if you make the first payment on the loan immediately instead of at the end of the first year? (Do not round intermediate calculations. Round your answer to 2 decimal places.)...
You have a loan outstanding. It requires making three annual payments at the end of the next three years of $2000 each. Your bank has offered to allow you to skip making the next two payments in lieu of making one large payment at the end of the loan's term in three years. If the interest rate on the loan is 6%, what final payment will the bank require you to make so that it is indifferent between the two...
You have a loan outstanding. It requires making 4 annual payments at the end of the next 4 years of $8,000 each. Your bank has offered to allow you to skip making the next 3 payments in lieu of making one large payment at the end of the loan's term in 4 years. If the interest rate on the loan is 5.23%, what final payment will the bank require you to make so that it is indifferent between the two...
Fully amortized loan (annual payments for principal and interest with the same amount each year). Chuck Ponzi has talked an elderly woman into loaning him $45,000 for a new business venture. She has, however, successfully passed a finance class and requires Chuck to sign a binding contract on repayment of the $45,000 with an annual interest rate of 7% over the next 20 years. Determine the cash flow to the woman under a fully amortized loan, in which Ponzi will...
Fully amortized loan (annual payments for principal and interest with the same amount each year). Chuck Ponzi has talked an elderly woman into loaning him $40,000 for a new business venture. She has, however, successfully passed a finance class and requires Chuck to sign a binding contract on repayment of the $40,000 with an annual interest rate of 6% over the next 20 years. Determine the cash flow to the woman under a fully amortized loan, in which Ponzi will...
Most questions answered within 3 hours.
-
Your company has six-sigma conformance for each of 10 component
that are a part if a...
asked 1 minute from now -
Explain the buffering components of urine, the chemical
equation, where the system is found and find...
asked 4 minutes ago -
The financial records of Leon Paul Inc. were destroyed by fire
at the end of 2017....
asked 6 minutes ago -
The normal-curve approximation can also be used for discrete
distribution other than the binomial distribution. For...
asked 36 minutes ago -
1. Find the following z values for the standard normal
variable Z. (You may find it...
asked 32 minutes ago -
Lakeside Motors will sell you a $9000 car for $225 a month for 60
months. What...
asked 22 minutes ago -
how immigrants foster innovations and how it lead to economic
growth of the host country????
"Not...
asked 34 minutes ago -
What are some of the methods that creditors use to
reduce risk in credit transactions?
asked 28 minutes ago -
1 Explain HOW you would use the scientific method to test
which helps kids lose weight:...
asked 35 minutes ago -
Given the complexities involved with supply chains, might it
make sense for a business to vertically...
asked 36 minutes ago -
MARKET EFFICIENCY IN-CLASS WORKSHEET 2 This question examines
the market for peanut butter. You will use...
asked 49 minutes ago -
An ideal gas (which is is a hypothetical gas that conforms to
the laws governing gas...
asked 52 minutes ago