Suppose that you borrow a certain amount of money at 4% effective and you will repay the loan by making payments of $2000 at the end of each year for 4 years. Construct the amortizati
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8- Suppose that you borrow a certain amount of money at 4% effective and you will repay the loan by making payments of $2000 at the end of each year for 4 years. Construct the amortization schedule.
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- A $400 loan is to be amortized with eight quartely payments over 2 years. If the interest is at J4 = 10% a. Find the quartely payment b. Construct an amortization schedule for this loan payment.Q.1: Using amortization payments and suppose borrow $20000 at 8% compound annual interest to be repaid over 5 years and answer the following:a. Set up an amortization schedule for a GHȼ 25,000 loan to be repaid in equal installments at the end of each of the next 5 years. The interest rate is 10%. b. How large must each annual payment be if the loan is for GHȼ 50,000? Assume that the interest rate remains at 10% and that the loan is still paid off over 5 years. c. How large must each payment be if the loan is for GHȼ 50,000, the interest rate is 10%, and the loan is paid off in equal installments at the end of each of the next 10 years? This loan is for the same amount as the loan in part b, but the payments are spread out over twice as many periods. Why are these payments not half as large as the payments on the loan in part b?
- H3. The interest rate on a $6400 loan is 7% compounded semi-annually, and the loan is to be repaid by monthly payments of $155. Construct a partial amortization schedule showing the last 2 payments. Determine the total amount paid to settle the loan. Show work, not just the answer. Determine the total principal repaid. Determine the total amount of interest paid. Show work, not just the answer.3. A loan of size L is to be paid off by payments of 2000 each year for 10 years. The principal repaid in year 2 is 800. Find the interest rate i and the loan size L.Suppose that you need an amount of money which equals to $10000000. It is possible to find it from bank A at an annual interest rate of 18% under 12 equal payment. If the first payment will be 1 month later the day you used the loan. Find the CF (Cash Flow), the equal payments and prepare the amortization table.
- 1. Let's assume that a loan of $100,000 with an annual interest rate of 6% over 30 years pays monthly payments of $500. a. Calculate the accumulation rate b. Calculate the payment rate . c. Answer : How will the balance of the principal be at the end of the loan in relation to the original amount of the loan? Less, equal or greater? Provide calculations.I need help with d. Basic ARM is made for $250,000 at an initial interest rate of 6 percent for 30 years with annual reset date. The borrower believes that the interest rate at the beginning of the year 2 will increase to 7 percent. a. Assuming that a fully amortizing loan is made, what will monthly payments be during year 1? PMT = $1498.88 b. Base on (a), what will the loan balance be at the end of year 1? FV = $246,929.97 c. Given that the interest rate is expected to be 7 percent at the beginning of year 2, what will monthly payments be during year 2? PMT = $1659.69 d. What will be the loan balance at the end of year 2?Set up an amortization schedule for a Rs 100,000 loan to be repaid in equalinstallments at the end of each of the next 5 years. The interest rate is 10%compounded annually. b. What percentage of the payment represents interest and what percentage represent principal for each of the 5 years? Why do these percentages change over time?
- 3. You wish to purchase a land worth P750,000 and the seller requires 20% downpayment. Then you will loan the balance from a bank that charge 6% annual interest rate to be paid for 1 year. a. How much is the monthly amortization? b. How much is the total interest?2. Find the semiannual payments to repay a debt of P100,000 in 5 equal payments with interest at 12% compounded semiannually, the first of these payments to start one year after the loan is made. Construct an amortization schedule.1.What are the annual payments for a 4-year $4,000 loan if the interest rate is 9% per year? Make up a loan amortization schedule