Question

A three-year sinking fund loan for $? at ?=5.2% and ?=3% has annual payments of $100....

A three-year sinking fund loan for $? at ?=5.2% and ?=3% has annual payments of $100.

a. Find ??]?&?

b. Find ?.

c. Find the interest on the loan at time 1.

d. Find the sinking fund deposit at time 1.

e. Find the interest on the sinking fund account at time 1.

f. Find the interest on the sinking fund account at time 2.

please show all work, no excel

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Financial Math: A 20-year loan is being repaid by annual payments of 2000, 2500, 3000, 3500,...
Financial Math: A 20-year loan is being repaid by annual payments of 2000, 2500, 3000, 3500, ... at end of each year. If the present value of the seventh and eighth payments are equal. (a) Find the annual effective interest rate. (b) Find the principal and interest paid in the third annual payment. Please show algebraic work not just excel.
A 30-year $115000 loan has a level amortization payments at the end of each year. The...
A 30-year $115000 loan has a level amortization payments at the end of each year. The effective annual interest rate is 3.75%. Let P be the ratio of total interest paid and total payments made during the life of the loan. (a) Find P. (b) At the end of year n, the outstanding balance is less than half of the loan amount for the first time. Find n. Please do the problem without Excel.
A loan of 20,000 is being repaid by 20 annual payments at the end of year,...
A loan of 20,000 is being repaid by 20 annual payments at the end of year, each includes equal repayment of the principal along with the interest at 5% effective on the unpaid loan balance. After receiving each payment, the lender immediately deposits the payment into an account bearing interest at an annual rate of 3%. Find the accumulated value of the account right after the last deposit. The accumulated value is (in two decimals).
Consider a business loan maturing in three years that has three remaining annual payments in one,...
Consider a business loan maturing in three years that has three remaining annual payments in one, two, and three years. The annual payments are all equal to $3 Million. While analyzing the loan, you are using a YTM equal to 10%. Determine the duration of the loan and then, using this estimated duration and a duration analysis, predict the percentage change in the value of the loan after a 0.5 percentage point increase in the interest rate. You should assume...
Course- Theory of Interest (Chapter: Amortization and Sinking Funds) A $75,000 loan to be repaid over...
Course- Theory of Interest (Chapter: Amortization and Sinking Funds) A $75,000 loan to be repaid over a 5-year period, my be repaid by one of two methods 1) Level annual payments made at the beginning of each year 2) Level semi-annual payments made at the end of each 6-month period If d^(4) = 0.076225, Find the absolute difference in the payments made each year under the two methods. Answer: $1,030.22
Rino just purchased his first car with a 7.5% 5 year mortgage loan of RM78,000. (a)...
Rino just purchased his first car with a 7.5% 5 year mortgage loan of RM78,000. (a) If he pays interest yearly and the total loan will be settled at the end of year 5, how much is his equal yearly payment for the sinking fund which earns 5.2% interest yearly compounding? Assume that the first payment to the fund make immediately. (b) Refer to part (a), if Rino did not pay interest to the lender for the whole tenure till...
A twenty-year loan of $25000 is negotiated with the borrower agreeing to repay principal and interest...
A twenty-year loan of $25000 is negotiated with the borrower agreeing to repay principal and interest at 5%. A level payment of $1500 will apply during the first ten years, and a higher level payment will apply over the remaining ten years. Each time the lender receives a payment from the borrower, he will deposit the portion representing principal into a sinking fund with an annual effective interest rate of 4%. (This is the amount for replacement capital). What is...
A loan is to be repaid in end of quarter payments of $1,000 each, with there...
A loan is to be repaid in end of quarter payments of $1,000 each, with there being 20 end of quarter payments total. The interest rate for the first two years is 6% convertible quarterly, and the interest rate for the last three years is 8% convertible quarterly. Find the outstanding loan balance right after the 6th payment. Please show/explain your work, I'd like to learn how to do it without excel
You have just taken out a 29 -year, $ 118 ,000 mortgage loan at an annual...
You have just taken out a 29 -year, $ 118 ,000 mortgage loan at an annual interest rate of 6.2 percent. The mortgage has monthly payments. What is the amount of each payment? Calculate your answer to the nearest $.01. Enter your answer as a positive number. Please show work on how to compute in MS Excel
A 10-year loan in the amount of $527,000 is to be repaid in equal annual payments....
A 10-year loan in the amount of $527,000 is to be repaid in equal annual payments. What is the remaining principal balance after the sixth payment if the interest rate is 5 percent, compounded annually? Show work.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT