You borrow $11,331 and repay the loan with 5 equal annual payments. The first payment is supposed to occur at the end of year 1 and you pay 5% annual compound interest. If you decide to defer the first payment to 4 years after the receipt of the money (end of year 4), what would be your annual payment amount? (Round your answer to 2 decimal places)

You borrow $11,331 and repay the loan with 5 equal annual payments. The first payment is supposed to occur at the end of year 1 and you pay 5% annual compound interest. If you decide to defer the first payment to 4 years after the receipt of the money (end of year 4), what would be your annual payment amount? (Round your answer to 2 decimal places)

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

See similar textbooks

Similar questions

You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.
You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.
Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $2,500 over the next 4 years when the interest rate is 15%, how much do you need to deposit in the account? B. If you place $6,200 in a savings account, how much will you have at the end of 7 years with a 12% interest rate? C. You invest $8,000 per year for 10 years at 12% interest, how much will you have at the end of 10 years? D. You win the lottery and can either receive $750,000 as a lump sum or $50,000 per year for 20 years. Assuming you can earn 8% interest, which do you recommend and why?
Samuel Ames owes 20,000 to a friend. He wants to know how much he would have to pay if he paid the debt in 3 annual installments at the end of each year, which would include interest at 14%. Draw a time line for the problem. Indicate what table to use. Look up the table value and place it in a brief formula. Solve.
If you borrow $2,900 and agree to repay the loan in six equal annual payments at an interest rate of 11%, what will your payment be? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. What will your payment be if you make the first payment on the loan immediately instead of at the end of the first year? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
1. If you borrow $2,400 and agree to repay the loan in four equal annual payments at an interest rate of 10%, what will your payment be? (Do not round intermediate calculations. Round your enswer to 2 decimal places.) Amount of payment b. What if you make the first payment on the loan immediately instead of at the end of the first year? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Repayment amount %24 %24
You borrow $6000 to help pay your college expenses. You agree to repay the loan at the end of 8 years at 8% interest, compounded monthly. (Round your answers to two decimal places.) (a) What is the maturity value of the loan?$ (b) How much interest are you paying on the loan?
you have just borrowed $51,107 at an annual interest of 7.6% and must repay the loan in equal installments at the end of each of the next 7 years. By how much would you reduce the amount you owe (that is, principal) at the end of the first year? (Hint: Compute annual loan payment first and then the loan amortization schedule for the first year.) Group of answer choices $5,798.23 $5,790.23 $5,792.23 $5,796.23 $5,794.23
a. If you borrow $2,200 and agree to repay the loan in five equal annual payments at an interest rate of 12%, what will your payment be? b. What will your payment be if you make the first payment on the loan immediately instead of at the end of the first year?
a. If you borrow $1,100 and agree to repay the loan in six equal annual payments at an interest rate of 11%, what will your payment be? b. What will your payment be if you make the first payment on the loan immediately instead of at the end of the first year?
(Q) A borrower takes out an interest - only loan at 7% for $1,000,000 with a 10-year term. What is the monthly payment on this loan? (State your answer as a positive number, rounded to two decimal places.)
You take out a 14-year personal loan for $13000 at rate of 8.1% which compounds 4 times per year. After 1 years, you refinance the loan and get a 13-year loan at a rate of 6.48%. a) When you first get the loan, how much is your payment? $ 390.24 Correct b) Make a spreadsheet for your loan balance, interest, and payments. After 1 years of paying, how much do you owe? $ c) Adjust your spreadsheet for the new interest rate starting when you refinance in year 1. What is your new payment? $