Question

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)?

Answer #1

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)?

Today, you borrowed $20,000 at 5.5% with quarterly compounding.
You have agreed to pay off the loan over 5 years by making equal
weekly payments. If you were solving for your unknown weekly
payment amount using the annuity present value equation, what
interest rate would you use? (Hint: You don't actually need to
solve for your unknown payment amount.) Do not round intermediate
calculations. Round the final answer to 2 decimal places. Omit the
% sign in your response. For...

3) You have agreed to a $50,000 loan from First National Bank
today and promise to repay the loan in three years at an APR of
6.50%.
a) How much is your monthly payment? (7 POINTS)
b) How much interest will you pay for your first payment? (Hint:
You can refer to the amortization schedule or compute
manually.)
c) How would making an extra payment each month affect the total
payment and the total interest? Explain your answer.

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

You have borrowed $24,000 and agreed to pay back the loan with
monthly payments of $200. If the interest rate is 12%,how long will
it take you to pay back the loan?

a) You took out a one-year loan for $1000 and agreed to pay it
in three equal installments, one payment at the end of 1 month,
second payment at the end of 2 months, and the last payment at the
end of the year. What is the size of each payment? Assume the
interest rate is 9%.
b) In part (a), suppose that you made three non-equal payments:
the first was $500 at the end of 1 month, the second...

You have an outstanding student loan with required payments of
$500 per month for the next four years. The interest rate on the
loan is 8% APR. You are considering making an extra payment of $200
today (that is, you will pay an extra $200 that you are not
required to pay).
If you are required to continue to make payments of $500 per
month until the loan is paid off, what is the amount of your final
payment?
What...

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

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...

Stan borrows $20,000 at a quarterly effective interest rate of
2.1%. Stan repays the loan by making a payment of X six months from
now and a payment of 2X one year from now. Three months after
Stan's first payment, Stan decides to pay off his loan early. What
is the amount of Stan's final payment?

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 48 seconds ago

asked 49 seconds ago

asked 49 seconds ago

asked 1 minute ago

asked 3 minutes ago

asked 5 minutes ago

asked 5 minutes ago

asked 5 minutes ago

asked 7 minutes ago

asked 7 minutes ago

asked 8 minutes ago

asked 9 minutes ago