Question

1) You receive a $20,000, 8% (APR) 5-year amortized loan. How much would be your payment...

1) You receive a $20,000, 8% (APR) 5-year amortized loan. How much would be your payment if:

-Make payments at the end of the year.

-Make payments at the end of the quarter.

-Make payments at the end of the month.

-How much you end up paying back to the bank over the 5 years under each payment period?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The formula for finding payment per period,

p = payment per period

P = Loan

n = number of payment per year

t= year

r = annual interest rate,

R = r/n , N = n*t

Payment Method R N p Total Interest Total Payment
Yearly 8% 5 5009.13 5045.65 25045.65
Quarterly 2% 20 1223.13 4462.69 24462.69
Monthly 0.67% 60 405.53 4331.67 24331.67
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
You are borrowing $200,000 on a 30 year, 12% apr, monthly payment, mortgage loan. How much...
You are borrowing $200,000 on a 30 year, 12% apr, monthly payment, mortgage loan. How much will be your principal repayment from your monthly mortgage payment at the end of the second month?(Make a table for the mortgage loan payment schedule) Can you explain how to get interest and principle repaid please
Your student loan, taken out five years ago, wa in the amount of $20,000 with the...
Your student loan, taken out five years ago, wa in the amount of $20,000 with the annual interest rate of 5% compounded monthly over those five years. Because it is a student loan, you did not make any payments until now. You just graduated and your payment starts at the end of each month starting at the end of this month. If you plan to pay back the loan in 5 years, how much is your monthly payment? $333.81 $484.37...
You want to buy a car, and the bank will lend you $20,000. The loan will...
You want to buy a car, and the bank will lend you $20,000. The loan will be fully amortized over five years. Nominal interest rate will be 6% with interest paid monthly. What will be the loan monthly payment. How much of the second month payment will be interest?
You are taking out a $13395 loan. It will be amortized with fixed payments over 10...
You are taking out a $13395 loan. It will be amortized with fixed payments over 10 years. It is to be paid quarterly and the APR is 4%. What is the interest payment on the loan in the second quarter?
Prob. 1 Bill has taken out an amortized loan for $20,000 to buy a boat. The...
Prob. 1 Bill has taken out an amortized loan for $20,000 to buy a boat. The loan has an annual interest rate of 16%, which is compounded monthly, and he will be paying it with monthly payments over eight years. What is his monthly payment?
Suppose you apply a 5-year bank loan of $500000 at 12% APR, repayable in equal installments...
Suppose you apply a 5-year bank loan of $500000 at 12% APR, repayable in equal installments at the end of each month. a. How much do you need to pay each month? (Round up your answer to the nearest two decimal points) b.How much is owed (to the bank) at the end of year 3? (Round up your answer to the nearest two decimal points) c. How much interest is paid at the first month of year 4 of the...
A bank makes a loan of 20,000 at an interest rate of i. The loan will...
A bank makes a loan of 20,000 at an interest rate of i. The loan will be repaid with level payments at the end of each year for 20 years. When the bank receives each payment, it reinvests at a rate of 5%. At the end of the 20 year period, the bank calculates the annual effective return over the loan period to be 6.5%. What is i, the original interest rate on the loan?
You are taking out a $18707 loan. It will be amortized with fixed payments over 10...
You are taking out a $18707 loan. It will be amortized with fixed payments over 10 years. It is to be paid quarterly and the APR is 4%. What is the interest payment on the loan in the second quarter? Select one: a. $180.90 b. $183.24 c. $226.35 d. $178.28 e. $187.07
You are taking out a $19124 loan. It will be amortized with fixed payments over 10...
You are taking out a $19124 loan. It will be amortized with fixed payments over 10 years. It is to be paid quarterly and the APR is 4%. What is the interest payment on the loan in the second quarter? Select one: a. $184.93 b. $191.24 c. $231.40 d. $187.33 e. $182.25
You are taking out a $11258 loan. It will be amortized with fixed payments over 10...
You are taking out a $11258 loan. It will be amortized with fixed payments over 10 years. It is to be paid quarterly and the APR is 4%. What is the interest payment on the loan in the second quarter? Select one: a. $112.58 b. $107.29 c. $110.28 d. $108.86 e. $136.22
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT