Question

Q4

9.You are borrowing $200,000 for an amortized loan with terms that include annual payments,9 year loan, and interest rate of 4.5 per year. How much of the first year's payment would be applied toward reducing the principal? Answer to the nearest cent xxx.xx, and do not enter the dollar sign.

10.What is the effective or equivalent annual rate if the bank pays 7 % nominal interest rate but compounds the money daily (use 365 days in a year)? Answer as a percent, to the nearest hundredth, xx.xx%, and enter without the percent sign.

Answer #1

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

Cell reference -

you are borrowing 200,000 for an amortized loan with terms that
include annual payments, 5 year loan, and interest rate of 7.5 per
year. How much of the first year's payment would be applied toward
reducing the principal

1.You are borrowing $100,000 for an amortized loan with terms
that include annual payments,6 year loan, and interest rate of 4.5
per year. How much are your equal annual
payments? Answer to the nearest cent xxx.xx, and do not
enter the dollar sign.
2.Calculate the total present value of the following three cash
flows: $15 obtained one year from today, $24 obtained
two years from today, and $30 obtained three years from
today. Use 6.7% as the interest rate. Answer
to the nearest cent, xxx.xx and...

Q4
5.What is the price of a zero-coupon 24-year maturity bond per
face (par) value of $1,000 if the annual market rates for these
bonds are 5.9%? Answer to the nearest cent, xxx.xx and enter
without the dollar sign.
6.A firm's stock has 50% chance of a 8% rate of return and
a 50% chance of a 23% rate of return. What is the
standard deviation of return for this stock?
Answer as a percent return to the
nearest hundredth of a...

You take an amortized loan for $11,000. Your monthly payments
are $670. The loan has an annual interest rate of 11%, where the
interest is compounded monthly. When you make your first payment,
how much of your payment will go toward interest and how much will
go toward principal?

Fully amortized loan (annual payments for principal and
interest with the same amount each year). Chuck Ponzi has talked
an elderly woman into loaning him $35 comma 000 for a new business
venture. She has, however, successfully passed a finance class and
requires Chuck to sign a binding contract on repayment of the $35
comma 000 with an annual interest rate of 11% over the next 5
years. Determine the cash flow to the woman under a fully
amortized loan,...

Find the amortization table for a $8,000 loan amortized over 3
years with semiannual payments if the interest rate is 8.3% per
year compounded semiannually. (Round your answers to the nearest
cent.)
End of
Period
Payment
Made
Payment
Toward
Interest
Payment
Toward
Principal
Outstanding
Principle
0
8000
1
2
3
4
5
6

Find the amortization table for a $23,000 loan amortized over 3
years with semiannual payments if the interest rate is 6.1% per
year compounded semiannually. (Round your answers to the nearest
cent.) End of Period Payment Made Payment Toward Interest Payment
Toward Principal Outstanding Principle 0 23000 1 2 3 4 5 6

Find the amortization table for a $23,000 loan amortized in five
annual payments if the interest rate is 8.5% per year compounded
annually. (Round your answers to the nearest cent.)

A loan is amortized by level annual payments every July 22, plus
a smaller ﬁnal payment one year after the last regular payment. The
borrower notices that the interest paid in the July 22, 2010
payment was $200, and the interest paid in the July 22, 2012
payment was $180. The annual eﬀective rate of interest on the loan
is 4%. Find the amount of principal repaid in the July 22, 2010
payment

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

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