Homework Answers
Solution :-
According to Equation Given in Equation :-
PV = Installment * PVAF ( r , n )
75,000,000 = 3,500,000 * PVAF ( r , 24)
PVAF ( r , 24 ) = 21.428
Now With the Help of PVAF table we get
r = 0.93 %
Now this r is for a month so
APR = 0.93% * 12 = 11.16%
The APR used for this loan = 11.16%
Add Answer to:
10. You obtained a loan of Rp. 75.000.000 to finance your home improvement project. Based on...
for number 9 is 1,500,000 dollar) 9 A loan of Rp. 25.000.000 is to be financed...
for number 9 is 1,500,000
dollar) 9 A loan of Rp. 25.000.000 is to be financed to assist a person's college education. Based upon monthly compounding for 24 months, the end-of-the-month equal payment is quoted as Rp. 150.000. What nominal interest rate is being charged'! 10. You obtained a loan of Rp.75.000.000 to finance your home improvement project. Based on monthly compounding over 24 months, the end-of-the-month equal payment was figured to be Rp. 3500.000. What is the APR used...
number 7,9,10 Yeurs Rp. 2.000.000 6. You have just purchased 300 shares of Unilever stock at...
number 7,9,10
Yeurs Rp. 2.000.000 6. You have just purchased 300 shares of Unilever stock at $25 per share. You will sell the stock when its market price doubles. If you expect the stock price to increase 15% per year, how long do you expect to wait before selling the stock? 7. A project is expected to generate a cash flow of $4000 in year 1, $2000 in year 2, and $5000 in year 3. At an interest rate of...
1. (35 points) You needed $10,000 and obtained the following loan Loan specifics: You are expected...
1. (35 points) You needed $10,000 and obtained the following loan Loan specifics: You are expected to pay 24 equal monthly installments (SA per month) at APR 12%, compounded monthly, starting from a month from obtaining the loan. If you miss a payment, your APR goes up to 24%, duration of the loan does not change but your monthly fixed payments go up. You miss your 12th payment. On the day of your 13th payment, the bank offers you a...
You are considering refinancing your home. Under the original terms of your mortgage you borrowed $250,000...
You are considering refinancing your home. Under the original terms of your mortgage you borrowed $250,000 to be repaid with equal monthly payments over 30 years. The APR on the loan was 4.5%. You have 20 years of payments remaining. If you now can refinance the remaining loan with no prepayment penalties at a 3.5% APR by how much will your monthly payment drop? What is the present value of your savings if your opportunity cost is represented by an...
10 Page 4 of 10 Question 4 (1 point) A home improvement loan is to be...
10 Page 4 of 10 Question 4 (1 point) A home improvement loan is to be repaid by equal monthly payments for six years. The interest rate is 5.4% compounded monthly and the amount borrowed is $33,500. How much interest will be included in the first payment? Question 4 of 10 | Page 4 of 10 Question 4 (1 point) A home improvement loan is to be repaid by equal monthly payments for six years. The interest rate is 5.4%...
10. Problem 5.26 Click here to read the eBook: Present Values PV AND LOAN ELIGIBILITY You...
10. Problem 5.26 Click here to read the eBook: Present Values PV AND LOAN ELIGIBILITY You have saved $4,000 for a down payment on a new car. The largest monthly payment you can afford is $300. The loan will have a 11% APR based on end-of-month payments. a. What is the most expensive car you can afford if you finance it for 48 months? Do not round intermediate calculations. Round your answer to the nearest cent. b. What is the...
Your uncle Fred just purchased a new boat. He brags to you about the low 7.2% interest rate (APR, monthly compounding) he obtained from the dealer. The rate is even lower than the rate he could have obtained on his home equity loan (8.2% APR, monthly comp
Your uncle Fred just purchased a new boat. He brags to you about the low 7.2% interest rate (APR, monthly compounding) he obtained from the dealer. The rate is even lower than the rate he could have obtained on his home equity loan (8.2% APR, monthly compounding). But if his tax rate is 26% and the interest on the home equity loan is tax deductible, which loan is truly cheaper?
Ten years ago you obtained a 30-year mortgage for $400,000 with a fixed interest rate of...
Ten years ago you obtained a 30-year mortgage for $400,000 with a fixed interest rate of 3% APR compounded monthly. The mortgage is a standard fixed rate mortgage with equal monthly payments over the life of the loan. What are the monthly fixed mortgage payments on this mortgage (i.e., the minimum required monthly payments to pay down the mortgage in 30 years)? What is the remaining loan balance immediately after making the 120th monthly payment (i.e., 10 years after initially...
your plan to finance a toyota camry that sells for $32,000 with a loan that carries...
your plan to finance a toyota camry that sells for $32,000 with a loan that carries a 3% APR for 5 years (60 months). what is your monthly payment?
please show all steps 2. You have borrowed a loan form bank for $400,000 to finance...
please show all steps
2. You have borrowed a loan form bank for $400,000 to finance a new house. You are required to repay the loan in 360 equal monthly payments starting at the end of month 1. The bank charges an interest rate of 3% APR, compounded monthly. (i) What is the reduction in repayment time if you decide to add $400 to each payment? What is the remaining balance of the loan after 120 payments under (ii) the...
for number 9 is 1,500,000
dollar) 9 A loan of Rp. 25.000.000 is to be financed to assist a person's college education. Based upon monthly compounding for 24 months, the end-of-the-month equal payment is quoted as Rp. 150.000. What nominal interest rate is being charged'! 10. You obtained a loan of Rp.75.000.000 to finance your home improvement project. Based on monthly compounding over 24 months, the end-of-the-month equal payment was figured to be Rp. 3500.000. What is the APR used...
number 7,9,10
Yeurs Rp. 2.000.000 6. You have just purchased 300 shares of Unilever stock at $25 per share. You will sell the stock when its market price doubles. If you expect the stock price to increase 15% per year, how long do you expect to wait before selling the stock? 7. A project is expected to generate a cash flow of $4000 in year 1, $2000 in year 2, and $5000 in year 3. At an interest rate of...
1. (35 points) You needed $10,000 and obtained the following loan Loan specifics: You are expected to pay 24 equal monthly installments (SA per month) at APR 12%, compounded monthly, starting from a month from obtaining the loan. If you miss a payment, your APR goes up to 24%, duration of the loan does not change but your monthly fixed payments go up. You miss your 12th payment. On the day of your 13th payment, the bank offers you a...
10 Page 4 of 10 Question 4 (1 point) A home improvement loan is to be repaid by equal monthly payments for six years. The interest rate is 5.4% compounded monthly and the amount borrowed is $33,500. How much interest will be included in the first payment? Question 4 of 10 | Page 4 of 10 Question 4 (1 point) A home improvement loan is to be repaid by equal monthly payments for six years. The interest rate is 5.4%...
10. Problem 5.26 Click here to read the eBook: Present Values PV AND LOAN ELIGIBILITY You have saved $4,000 for a down payment on a new car. The largest monthly payment you can afford is $300. The loan will have a 11% APR based on end-of-month payments. a. What is the most expensive car you can afford if you finance it for 48 months? Do not round intermediate calculations. Round your answer to the nearest cent. b. What is the...
please show all steps
2. You have borrowed a loan form bank for $400,000 to finance a new house. You are required to repay the loan in 360 equal monthly payments starting at the end of month 1. The bank charges an interest rate of 3% APR, compounded monthly. (i) What is the reduction in repayment time if you decide to add $400 to each payment? What is the remaining balance of the loan after 120 payments under (ii) the...
Most questions answered within 3 hours.
-
A new kind of typhoid shot is being developed by a medical
research team. The old...
asked 25 minutes ago -
Write a chemical equation for these reactions. (Use
the lowest possible whole number coefficients.) Include
states-of-matter...
asked 2 hours ago -
For each of the Z-scores below, determine two probabilities
(show four three decimal places): (1) the...
asked 2 hours ago -
Oxidative phosphorylation is achieved through chemiosmotic
coupling, which turns chemical energy into osmotic potential energy
that...
asked 5 hours ago -
Hollywood Shoes would like to maintain their cash account at a
minimum level of $64,000, but...
asked 5 hours ago -
Proteins CtrA-P, DnaA, and GcrA behave similarly to what
molecule in the Eukaryotic Cell Cycle?
asked 5 hours ago -
TRUE OR FALSE
In case of a competitive tender procedure, in the request for
quotation, the...
asked 5 hours ago -
I am a little behind please provide some explanation, will
provide thumbs up.
This question considers...
asked 5 hours ago -
Let say the utility function as U(X,Y) = lnX + Y. Show that the
marginal rate...
asked 5 hours ago -
A current of I=8.0A is flowing in a typical extension cord of
length L=3.00m. The cord...
asked 5 hours ago -
1. When balancing the equation H2SO4 (aq) + NaOH (aq) →
Na2SO4(aq) + H2O(aq), would you...
asked 6 hours ago -
Provide a definition of “classification hierarchy” and
illustrate your definition with an example of how and...
asked 6 hours ago