Question

You borrow $70,000 today at an interest rate of 5.82 percent. You will repay the loan as an annuity over 6 years, with the first payment taking place one year from today. Calculate the interest portion of your second payment

Answer #1

You borrow $100,000 today. You will repay the loan with 20 equal
annual payments starting in year 3 If the interest rate on the loan
is 5% APR, compounded annually, how big is each payment?

2. Suppose you borrow $20,000 at an 18 percent simple interest
but must repay your loan in 12 equal monthly payments.
a. Find the APR for this loan.
b. What is the corresponding EAR?
3. Suppose you deposit $20,000 in a savings account. After 210
days, you withdraw your funds. If the bank paid you $340 in
interest for the 210-day period, what is your APY?
4. Suppose that the house of your dreams costs $1,200,000. You
manage to scrap...

Today is T=0. You borrow $200,000 today at a rate of interest
of 6%. You agree to repay the loan in 4 equal, annual installments.
The first payment is to be made at T=1. What is the
amount of the principal reduction associated with the third
payment?
Today is T=0. A company paid a dividend of $2.40 yesterday.
Dividends are expected to grow at a rate of 10% for three years, 8%
for one year and then at a rate...

You want to borrow $44,536. You must repay the loan in 6 years
in equal monthly payments and a single $3,319 payment at the end of
6 years. Interest rate is 3% nominal per year.
What will be the loan balance immediately after the
32th payment?

Assume that today you borrow $25,000 from your local bank. The
stated interest rate is 10%, compounded annually. It will be a 5
year loan. You will pay back the loan at the end of each of the
next five years. Part A) What will be your annual payment be for
the next five years. Part B) How much of your first payment is
going toward interest? Part C) What is the outstanding principle
balance after you make the first...

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

Today you borrow $25,000 from your local bank. The stated
interest rate is 10%, compounded annually. It will be a 5 year
loan. You will pay back the loan at the end of each of the next
five years.
A) What will be your annual payment be for the next five years.
B) How much of your first payment is going toward interest?
C) What is the outstanding principle balance after you make the
first payment?
D) How much...

suppose you want to borrow some money for two years. You can
repay the loan with single payment of 100000 in two year's time.
the lending institution determines that there is a 6% chance that
you will not repay the loan. the normal lending rate at that time
is 12% per annum. How much will the lend? if you repay the loan in
full, what rate of interest was charged?

If you borrow $1,800 and agree to repay the loan in four equal
annual payments at an interest rate of 10%, what will your payment
be? (Do not round intermediate calculations. Round your
answer to 2 decimal places.)
b. What will your payment be if you make the first
payment on the loan immediately instead of at the end of the first
year? (Do not round intermediate calculations. Round your
answer to 2 decimal places.)

a. If you borrow $1,700 and agree to repay the loan in six equal
annual payments at an interest rate of 11%, what will your payment
be? (Do not round intermediate calculations. Round your answer to 2
decimal places.)
b. What will your payment be if you make the
first payment on the loan immediately instead of at the end of the
first year? (Do not round intermediate calculations. Round
your answer to 2 decimal places.)

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