A loan from Bank of Montreal for $195,000 is repaid by making payments at thebeginning of every six months for 9 years. If interest is 7.84% compoundedsemiannually:What is the amount of each payment? Round all answers to two decimal places ifnecessary.Choose BGN or END? îP/Y =PV = $C/Y =PMT= $N=Cost of Financing = $FV = $What is the cost of financing? Round the answer to two decimal places.I/Y=(enter a positive value)%

We need to use PMT function in financial calculator for calculation of amount of each semi-annual…

Answered: A loan from Bank of Montreal for…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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The weekly payment on a 4-year loan at 6.8% compounded weekly is $321.09. Calculate the amount of the loan. Identify the appropriate formula needed to calculate the amount of the loan. Select the correct choice below and fill in the answer boxes to complete your choice. (Type integers or decimals. Round to two decimal places as needed.) A. F= OB. P= O C. P= (1+i)^ - 1 F (1 + i)^ - • R, with F = $, n=[ and i=% with P = $ n= 1-(1+i)n i •R, with n= and i= % i= %, and R=$

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A loan of £4,000 is to be repaid over 5 years by a level annuity payable monthly in arrears. The amount of the monthly payment is calculated on the basis of an interest rate of 1% per month effective. Task : Find the amount of the loan that has been repaid after 30 months. Answer: The loan outstanding after 30 months is a)L(1+i)^t-x∑_(s=1)^t(1-i)^s b)L(1+i)^t-x∑_(s=2)^t(1+i)^s c)x·a_30] d)a_30] Hence a)£1744.12 b)£1644.12 c)£1603.69 d)£1703.69 has been repaid at that point in time. They are multiple-choice questions
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A = P(1+ )" A = P + Prt APRNY Round your answer to the nearest cent. Include units with your answer. Be sure to show the formula you chose and the numbers you substituted into the formula on your supporting work if you would like partial credit to be considered. (a) If you invest $10,000 in an account that earns an APR of 5% simple interest, what will be the account balance after 10 years? (b) If you invest $10,000 in an account that earns an APR of 5% with monthly compounding, what will be the account balance after 10 years?

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