Question

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)?

Answer #1

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 $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...

Allysha just borrowed 39,900 dollars. She plans to repay this
loan by making a special payment of 5,000 dollars in 5 years and by
making regular annual payments of 7,900 dollars per year until the
loan is paid off. If the interest rate on the loan is 4.79 percent
per year and she makes her first regular annual payment of 7,900
dollars in one year, then how many regular annual payments of 7,900
dollars must Allysha make? Round your answer...

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...

14. Loan amortization and capital recovery
Ian loaned his friend $30,000 to start a new business. He
considers this loan to be an investment, and therefore requires his
friend to pay him an interest rate of 8% on the loan. He also
expects his friend to pay back the loan over the next four years by
making annual payments at the end of each year. Ian texted and
asked that you help him calculate the annual payments that he
should...

You have a loan outstanding. It requires making eight annual
payments of $2,000 each at the end of the next eight
years. Your bank has offered to restructure the loan so that
instead of making the eight payments as originally agreed, you
will make only one final payment in eight
years. If the interest rate on the loan is 5%, what final
payment will the bank require you to make so that it is indifferent
to the two forms of...

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