Question

Q4 9.You are borrowing $200,000 for an amortized loan with terms that include annual payments,9 year...

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.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

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

Cell reference -

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
you are borrowing 200,000 for an amortized loan with terms that include annual payments, 5 year...
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,...
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...
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...
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...
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...
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...
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...
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...
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...
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
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT