Question

1) Jens just took out a loan from the bank for 79,702 dollars. He plans to repay this loan by making a special payment to the bank of 4,130 dollars in 4 years and by also making equal, regular annual payments of X for 8 years. If the interest rate on the loan is 12.57 percent per year and he makes his first regular annual payment in 1 year, then what is X, Jens’s regular annual payment?

2) Theo just took out a loan from the bank for 228,826 dollars. He plans to repay this loan by making a special payment to the bank of 35,299 dollars in 3 months and by also making equal, regular monthly payments of X. If the interest rate on the loan is 0.9 percent per month, he makes his first regular monthly payment later today, and he makes his last regular monthly payment made in 7 months from today, then what is X, the amount of the regular monthly payment?

3) An investment, which is worth 25,500 dollars and has an expected return of 2.64 percent, is expected to pay fixed annual cash flows for a given amount of time. The first annual cash flow is expected in 1 year from today and the last annual cash flow is expected in 8 years from today. What is the present value of the annual cash flow that is expected in 2 years from today?

4) An investment, which is worth 145,925 dollars and has an expected return of 3.6 percent, is expected to pay fixed annual cash flows for a given amount of time. The first annual cash flow is expected later today and the last annual cash flow is expected in 9 years from today. What is the present value of the annual cash flow that is expected in 2 years from today?

5) Jenny is buying a town house priced at $275,000. Mortgage A calls for her to make equal monthly payments for 15 years at a monthly interest rate of 0.80% with her first payment due in 1 month. However, her loan officer has offered her a new opportunity involving equal monthly payments for 20 years at a monthly interest rate of 0.75% with her first payment due later today. By how much would switching from mortgage A to the new opportunity reduce the amount of Jenny's monthly loan payment?

Answer #1

using IRR and solver function in excel. As per question the data is
below

The answer is 15837.01

Sang just took out a loan from the bank for 67,668 dollars. He
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Youssef just took out a loan from the bank for 78,090 dollars.
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A skating rink is expected to produce regular annual cash flows
of 18,787 dollars with the first regular cash flow expected later
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1. Holly just borrowed 68,157 dollars from the bank. She plans
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If the interest rate on the loan is 10.96 percent per year and she
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Allysha just borrowed 39,900 dollars. She plans to repay this
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rate in decimal format so that 12.34% would be entered as .1234 and
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An investment, which is worth 44,500 dollars and has an expected
return of 13.27 percent, is expected to pay fixed annual cash flows
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Answer as a rate in decimal format so that 12.34% would be
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