Determine the number of regular semi annual payments for a $10000 loan if the interest rate...

Question

Question

Determine the number of regular semi annual payments for a $10000 loan if the interest rate is /2= 11.9% and the payments are:

a)Semi annual payments of $3200:

b)Semi annual payments of $4000:

c)Semi annual payments of $2900:

Answer 1

Answer #1

please provide rating.. let me know if you need any clarification ....

	We have to use financial calculator to solve this problem

a	Semi annual payments of $3200
	Put in calculator

	PV	-10000
	FV	0
	PMT	3200
	I =11.9%/2	5.95%

	Compute N	3.56	semiannual

	Therefore number of semiannual payment =			3.56

b	Semi annual payments of $4000
	Put in calculator

	PV	-10000
	FV	0
	PMT	4000
	I =11.9%/2	5.95%

	Compute N	2.79	semiannual

	Therefore number of semiannual payment =			2.79

c	Semi annual payments of $2900
	Put in calculator

	PV	-10000
	FV	0
	PMT	2900
	I =11.9%/2	5.95%

	Compute N	3.97	semiannual

	Therefore number of semiannual payment =			3.97

Answer 2

Similar Homework Help Questions

(1 point) Determine the number of regular semi annual payments for a $17000 loan if the...

(1 point) Determine the number of regular semi annual payments for a $17000 loan if the interest rate is J2-11 .8% and the payments are: a)Semi annual payments of $3600 b)Semi annual payments of $4300: c)Semi annual payments of $2200:
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.
What should be the price of a bond making semi-annual interest payments with annual coupon rate...

What should be the price of a bond making semi-annual interest payments with annual coupon rate of 10.2%, 23 years to maturity, and a face value of $1,000, when the required rate of return is 9.3%? $1,076.43 $1,084 81 $1086.53 $1078.41 $1,090.61

15 6 A 10% coupon rate bond makes semi-annual Interest rate payments. Par value is $1,000....

15 6 A 10% coupon rate bond makes semi-annual Interest rate payments. Par value is $1,000. The bond matures in 12 years. The required rate of return is 9.57%. What is the current price If the current price is 1,030.29, calculate the bonds YTM. a 9.15% b 7.25% Be Careful - This is Semi-Annual 5.20% 4.20% с
Interest-only loan (regular interest payments each year and principal at maturity). Chuck Ponzi has talked an...

Interest-only loan (regular interest payments each year and principal at maturity). Chuck Ponzi has talked an elderly woman into loaning him $10,000 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 $10,000 with an annual interest rate of 7% over the next 10 years. Determine the cash flow to the woman under an interest-only loan, in which Ponzi will pay the annual interest expense...
3) What is the effective monthly interest rate for a loan with a 12% nominal annual...

3) What is the effective monthly interest rate for a loan with a 12% nominal annual interest rate if the loan is compounded (a) semi-annually, (b) monthly, or (c) continuously? (to 5 decimal places)

1. Complete the following table. Number of Annual Payments or Years Present Value Interest Rate Future...

1. Complete the following table. Number of Annual Payments or Years Present Value Interest Rate Future Value Annuity 10 $250.00 12% 20 S1,000 25 S500,000 30 S1,000,000 2. You just started working and you planned to save $5,000 every year in your retirement account. How much money will you have in your retirement account once you retire in 40 years? Your retirement account pays 4% interest rate per year. 3. You just retired with S1,000,000 savings. You'd like to receive...
You borrow $80,000; the annual loan payments are $7,106.19 for 30 years. What interest rate are...

You borrow $80,000; the annual loan payments are $7,106.19 for 30 years. What interest rate are you being charged? Round your answer to the nearest whole number.
Loan interest For the loan amount, interest rate, annual payment, and loan term shown in the...

Loan interest For the loan amount, interest rate, annual payment, and loan term shown in the following table, calculate the annual interest paid each year over the term of the loan, assuming that the payments are made at the end of each year. Amount Interest rate $27,0009 % Annual payment $8,334.05 Term 4 years The portion of the payment that is applied to interest in year 1 is $2430. (Round to the nearest cent.) The portion of the payment that...

1. Find the monthly payments on this loan: $125,000 loan amount, 15 years, 6.25 annual interest...

1. Find the monthly payments on this loan: $125,000 loan amount, 15 years, 6.25 annual interest rate. Please provide steps. 2. Find the balance on this mortgage at the end of 6 years: $125,000 loan amount, 15 years, monthly payments, 6.25 annual interest rate. Please provide steps