Question

**Question 1**

Jack took a $ 5,000 loan, which he repaid in
**monthly** installments over **seven
months**. Payments were always made at the **end of
the month** (each payment month was 1/12 part of the year)
so that the first repayment was made 4 months after the loan was
drawn down. Each equal installment consisted of an installment of
the loan amount of $ 5,000 / 7 and an interest component of $ 30
and an account management fee of $ 15.40. In addition, in
connection with the first and last repayment installments, an
arrangement fee of 0.5% was paid in each of them, which was the
amount of the original loan amount.

What was the **real annual interest rate** on the
loan?

Please include instalment cost and arrangement fee in the calculations.

Answer #1

**Solution**

Annual Interest rate on loan is 7%

Ie:-It is calculated by taking interest amount of $30 paying every installement and the incremental cost and arrangement fee for the loan.

Here,The Jack paying interest on every
installement=$210(7*30)

He paying Management fee on every installement=$107.8(7*15.4)

In the first and second installment he paying arrangement fee at .5%=7.143(1428.57*.5%)

From the above explanation we can see that jack pays $ 325 as interest and fee for the loan taken by him.And finding out the real annual interest rate is calculated as follows:-

Total Amount Payable by Jack=$5325

Total No.of month takes to pay the loan=11 month

Actual amount of loan taken by him=$5000

Then,325=5000*(11/12)*r/100 here r means rate of interest

325=4583.3*r/100

(325/4583.3)*r/100=.07*r/100

r=.07*100=7%

Question 1
Jack took a $ 5,000 loan, which he repaid in
monthly installments over seven
months. Payments were always made at the end of
the month (each payment month was 1/12 part of the year)
so that the first repayment was made 4 months after the loan was
drawn down. Each equal installment consisted of an installment of
the loan amount of $ 5,000 / 7 and an interest component of $ 30
and an account management fee of...

A loan of $ 10000 is to be repaid in 30 equal monthly
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Please show detailed process

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266th
267th
268th
269th
270th

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Amortization Schedule
Consider a $50,000 loan to be repaid in equal installments at
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Set up an amortization schedule for the loan. Round your
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Payment
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Repayment of Principal
Balance
1
$
$
$
$
2
$
$
$
$
3
$
$
$
$
4
$
$
$
$
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$
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please answer all questions!!!
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