Homework Answers
| Loan Amount | 500,000 | ||
| Number of Payments N | 40 | bi-annual payment | |
| Anuual Int rate | 5% | ||
| Repayment Amounts | 19,918.117 | =-PMT(Annual Rate/2,N,Loan Amount) | Answer a |
| =-PMT(5%/2,40,500000) | |||
| Annual Rate | 5% | ||
| Monthly rate | 0.417% | ||
| Annualized Rate | 5.116% | ||
| Repayment Amounts | 20,113.482 | =-PMT(Annual Rate/2,N,Loan Amount) | Answer b |
| =-PMT(5.116%/2,40,500000) | |||
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2. You take out a home loan of $500 000, which will be repaid in 40 level payments at the end of each six-month period,...
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Please post with mathematical
formulas please, not an excel sheet!
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all the information are provided
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Samuel and Sandra Sharp wish to borrow $600,000 to buya home. The loan from the Highway Bank requires equal monthly repayments over 20 years, and carries an interest rate of 5-1 % per annum, compounded monthly. The first repayment is due at the end of one month after the loan proceeds are received. You are required to calculate the following. i) The effective annual interest rate on the above loan (show as a percentage correct to 3 decimal places). li)...
Please post with mathematical
formulas please, not an excel sheet!
1. Mr. X is repaying a loan by monthly payments of $146.75 at a nominal annual rate of 9% compounded monthly. Immediately after one of the pay- ments is made, when Mr. X has still 50 payments ahead of him, the lender lowers the interest rate to 7.8% nominal annual rate compounded monthly. Mr. X chooses to keep the same monthly payments, except the last payment that is larger than...
all the information are provided
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