Question

You borrow $10,000 on January 1 and agree to pay off the loan with 10 annual end-of-year payments. Your annual effective interest rate is 5%. Complete the loan amortization table shown below for payment number 5 and payment number 6.

Payment number Payment Amount Principal Interest Loan Balance After Payment

5

6

Answer #1

You borrow $70,000 and arrange to pay off the loan in five equal
annual installments.
Payments will be made at the end of each year. The loan interest
rate is 7.50 percent.
What percentage of your second year's payment will go toward
interest?
A.
19.5 percent
B.
17.2 percent
C.
80.5 percent
D.
28.7 percent
E.
25.1 percent

You
borrow $20000 and agree to pay it off with a single payment of
$35000 in 4 years. What annual rate of interest will you be
charged?

You are getting a six-month loan for new kitchen appliances,
where the principal is $10,000 and monthly interest is 1%. The
first payment will be made in a month from today. Find the equal
monthly payment and complete the following amortization table. [15
pts] Period Beginning, Balance Total Amount, Interest Payment,
Principal Payment , Ending Balance 1, 2, 3, 4, 5, 6

Today, you borrowed $20,000 and have agreed to pay off the loan
by making $500 weekly payments. Assume the effective weekly
interest rate is 0.2%. If you were preparing an amortization
schedule, what would be the ending balance after your first payment
(i.e. at the end of the first week)?

Today, you borrowed $5,000 and have agreed to pay off the loan
by making $250 weekly payments. Assume the effective weekly
interest rate is 0.1%. If you were preparing an amortization
schedule, what would be the ending balance after your first payment
(i.e. at the end of the first week)?

Question 1.
Part A: A firm has agreed to pay off a 10 year loan by making
ten $4,000 annual payments starting next year and a $100,000 lump
sum payment in 10 years. If the fair market interest rate is 6% how
much can they borrow?
Part B: The firm instead decides they would rather make 10 equal
annual payments starting next year with no lump sum in 10 years.
What annual payments must they make to borrow the same...

Loan
amortization)
To buy a new house you must borrow
$ 165,000
To do this you take out a
$ 165,000
30-year,
12
percent mortgage. Your mortgage payments, which are made at the
end of each year (one payment each year), include both principal
and
12
percent interest on the declining balance. How large will your
annual payments be?
The amount of your annual payments will be
$nothing .
(Round to the nearest cent)

The interest rate on a $16,000 loan is 10.4% compounded
semiannually. Semiannual payments will pay off the loan in seven
years. (Do not round intermediate calculations. Round the PMT and
final answers to 2 decimal places.) a. Calculate the interest
component of Payment 10. Interest $ b. Calculate the principal
component of Payment 3. Principal $ c. Calculate the interest paid
in Year 6. Interest paid $ d. How much do Payments 3 to 6 inclusive
reduce the principal balance?...

What is the size of payment needed to pay off the following
loan scenarios?
$180,000 principal, monthly payments, 6% interest, 15 year
term.
$180,000 principal, annual payments, 6% interest, 30 year
term.

Construct an amortization schedule for a $20,000, 3.45% annual
rate loan with 3 equal payments. Please complete the
schedule below as you see fit.
Year Beg.
Balance
Payment Interest Principal End
Balance

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