Claire repays a loan to banker Maggie by amortization method at 6% effective. She makes 25 equal payments of $1000 at the end of each year. If the amount of interest in each payment is invested by Mag...
Claire repays a loan to banker Maggie by amortization method at 6% effective. She makes 25 equal payments of $1000 at the end of each year. If the amount of interest in each payment is invested by Maggie at 6% effective as she receives the payments. What is the accumulated amount of the reinvested interest at the end of the 25th year?
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Claire repays a loan to banker Maggie by amortization method at 6% effective. She makes 25 equal payments of $1000 at the end of each year. If the amount of interest in each payment is invested by Mag...
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...
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. b. What rate (AEIR) does Anita end up paying...
A 15 year loan of $1000 is repaid with payments at the end of each year....
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.
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...
1. A $12,000 loan is being repaid with $1000 payments at the end of each year...
1. A $12,000 loan is being repaid with $1000 payments at the end of each year for as long as necessary, plus a smaller payment one year after the last $1000 payment. The first payment is due one year after the loan is taken out, and the effective annual interest rate is 6%. Calculate the balance on the loan immediately following the ninth payment
21. Dr. Rock takes out a loan for 100.000. The annual effective interest rate on the...
21. Dr. Rock takes out a loan for 100.000. The annual effective interest rate on the loan is 10%. Dr. Rock repays the loan by making payments at the end of each year. With the exception of the final payment, the payment amount is equal to three times the interest due. Dr. Rock's final payment is the balance due at that time, and the loan is arranged so that final payment does not exceed 1000. (a) How many payments does...
Problem 7 - Varying Payments and Equal Principal Repaid Jee has a loan with an effective...
Problem 7 - Varying Payments and Equal Principal Repaid Jee has a loan with an effective annual interest rate of 3%. He makes payments at the end of each year for 13 years. The first payment is 300, and each subsequent payment increases by 10 per year. Calculate the interest portion in the 7 th payment: I7= NOTE: I7=iB6 B6= PV of the remaining payments as of time 6: 360, 370, ... , 420.
A student takes out a five-year loan of 1000. interest on the loan is at an...
A student takes out a five-year loan of 1000. interest on the loan is at an annual effective interest rate of i. at the end of each year, the student pays the interest due on the loan and makes a deposit of twice the amount of that interest payment into a sinking fund. the sinking fund credits interest at an annual effective rate of 0.8i. the sinking fund will accumulate the amount needed to pay off the loan at the...
A loan is repaid with annual year-end payments of 15,000. The effective rate of interest is...
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.
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...
You borrow money on a self liquidating installemnt loan (equal payments at the end of each year, each payment is part principal part interest) Loan Interest Rate Life (years) Date of Loan $902,000 12...
You borrow money on a self liquidating installemnt loan (equal payments at the end of each year, each payment is part principal part interest) Loan Interest Rate Life (years) Date of Loan $902,000 12.80% 49 January 1, 2019 Use the installment method-not straight line Do NOT round any interrmediate numbers. Do NOT turn this into a monthly problem. a) What is the annual payment? b) What are the total interest payments? c) After 29 payments have been made, what percentage...
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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...
1. A $12,000 loan is being repaid with $1000 payments at the end of each year for as long as necessary, plus a smaller payment one year after the last $1000 payment. The first payment is due one year after the loan is taken out, and the effective annual interest rate is 6%. Calculate the balance on the loan immediately following the ninth payment
21. Dr. Rock takes out a loan for 100.000. The annual effective interest rate on the loan is 10%. Dr. Rock repays the loan by making payments at the end of each year. With the exception of the final payment, the payment amount is equal to three times the interest due. Dr. Rock's final payment is the balance due at that time, and the loan is arranged so that final payment does not exceed 1000. (a) How many payments does...
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...
You borrow money on a self liquidating installemnt loan (equal payments at the end of each year, each payment is part principal part interest) Loan Interest Rate Life (years) Date of Loan $902,000 12.80% 49 January 1, 2019 Use the installment method-not straight line Do NOT round any interrmediate numbers. Do NOT turn this into a monthly problem. a) What is the annual payment? b) What are the total interest payments? c) After 29 payments have been made, what percentage...
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