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- Calculating interest and APR of installment loan. Assuming that interest is the only finance charge, how much interest would be paid on a 5,000 installment loan to be repaid in 36 monthly installments of 166.10? What is the APR on this loan?Suppose you purchase a home and obtain a 15-year fixed-rate loan of $195,000 at an annual interest rate of 6.0%. a) What is your monthly payment? N: months I %: P.V: $ PMT: $ F.V: 0 P/Y: 12 C/Y: 12 b) Of the first month's mortgage payment, how much is interest? HINT: I=Prt Interest: I=$ c) Of the first month's mortgage payment, how much is applied to the principal? HINT: PMT - Interest Amount Applied to Principal: $ d) How much is your outstanding balance after the first month’s payment? HINT: Principal - Amount Applied to Principal Outstanding Balance after first payment: $Q1. You have an annual installment loan of Rs.150,000 from ABC bank for 5 years. If the loan requires an annual interest rate of 5% and the installments are to be paid at the end of each year, prepare a detailed breakup about the loan repayment indicating for the end of each year, the annual installment, the interest paid, the principal repaid and the remaining principal? Q2. Prepare the same schedule as above assuming that payments of installments are made at the beginning of each year.
- 1. You have just purchased a home by borrowing $400, 000 for 30-years at a fixed APR of 3.87%. The loan payments are monthly and interest is compounded monthly. What is the periodic interest rate? (l.e., what is the monthly interest rate?) O 0.0129 0.0032 0.0394 0.0013 4The following loan is a simple interest amortized loan with monthly payments. $7000, 7%, 4 years (a) Find the monthly payment. (Give your answer to the nearest cent.) Payment $189.58 (b) Find the total interest for the given simple interest amortized loan. (Give your answer to the nearest cent.) Total interest $ 2100 XThe principal is borrowed and the loans future value A at the time t is given. Determine the loans simple interest rate r P=3000.00 A=3495.00 t 3 years
- Q1. You have an annual installment loan of Rs.150,000 from ABC bank for 5 years. If the loan requires an annual interest rate of 5% and the installments are to be paid at the end of each year, prepare a detailed breakup about the loan repayment indicating for the end of each year, the annual installment, the interest paid, the principal repaid and the remaining principal?You are loaned $300 at the end of years 1, 2, and 3. You pay this loan back with payments of X at the end of year 5, and $300 at the end of years 4, 6, and 7. Find X if the effective annual interest rate i = .07What will be the compounded amount on a loan of P1.500 at 12% interest compounded quarterly for 1 year? of O P16.822.63 O P1.690 O Pl,688.26 O P16.860
- The following loan is a simple interest amortized loan with monthly payments. $5000, 7 1/2%, 4 years (a) Find the monthly payment. (Give your answer to the nearest cent.)Payment $ (b) Find the total interest for the given simple interest amortized loan. (Give your answer to the nearest cent.)Total interest $Assume the monthly payment of a loan amount of $400,000 is $1450. How long will it take to retire the loan if the annual interest rate is 4% ? Use the equation, Monthly payment= Where : P = principal (the amount of your mortgage r = the annual interest rate y = length of the mortgage P∗r12 1−(1+r12 )−12 yFind the interest rates earned on each of the following: A. You borrow $700 and promise to pay back $749 at the end of 1 year B. You lend $700 and the borrower promises to pay you back $749 at the end of 1 year C. You borrow $85,000 and promise to pay back $201,229 at the end of 10 years D. You borrow $9,000 and promise to make payments of $2,684.80 at the end of each year for 5 years
