Question

You are the loan officer of a bank. The ABC Company wants to borrow $100,000 and repay it with four equal annual payments (first payment due one year from now). You decide that the ABC Company should pay 0.10 per year on the loan.

a. What is the annual payment?

b. Complete the following debt amortization table:

Period | Amount owed(beginnig of yr) | Interest | Principal | Amount owed(end of yr) | |||||||

1 | $100,000 | ||||||||||

2 | |||||||||||

3 | |||||||||||

4 |

c. What would be the annual payment if the first of four equal payments is due

immediately?

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?

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.)

The XYZ Company has borrowed $100,000. Payments will be made
over a four-year period (first payment at the end of the first
year). The bank charges interest of 0.20 per year.
a. The annual payment will be ________.
b. The debt amortization schedule is Amount owed (beginning of
period) Interest Principal 1 $100,000 2 3 4
c. If there are five payments with the first payment made at the
moment of borrowing, the annual payment will be ________.

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.)

You borrow $10,000 on January 1 and agree to pay off the loan
with 10 annual end-of-year payments. Your annual effective interest
rate is 5%. Complete the loan amortization table shown below for
payment number 5 and payment number 6.
Payment number Payment Amount
Principal Interest Loan Balance After Payment
5
6

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?

TURN YOUR ANSWER IN EXCEL.
You borrow $100,000 for four years, at 3.5% per year. You will
make your payments yearly. First get the payment using your
calculator and or Excel. Then construct a Loan Amortization
Schedule using Excel

Assume you borrow $50,000 at 10% per year in- terest and you
agree to repay the loan in five equal annual payments. What is the
amount of the unre- covered balance immediately after you make the
third payment? both excel and hand solutions , please capture the
excel solution.

Your firm just acquired a bank loan in the amount of $30,000
at 6% APR. Equal payments are to be made annually at the end of
each year for three years. Construct the amortization table.
Year#
Owed
Annual Payment
Principal Reduction
Interest
New Principal
1
$30,000.00
2
3
Total

Consider a 4-year amortizing loan. You borrow $2,900 initially
and repay it in four equal annual year-end payments. a. If the
interest rate is 9%, what is the annual payment? (Do not round
intermediate calculations. Round your answer to 2 decimal places.)
b. Prepare an amortization schedule. (Do not round intermediate
calculations. Round your answers to 2 decimal places. Leave no
cells blank - be certain to enter "0" wherever required.)

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 5 minutes ago

asked 5 minutes ago

asked 5 minutes ago

asked 7 minutes ago

asked 7 minutes ago

asked 11 minutes ago

asked 14 minutes ago

asked 20 minutes ago

asked 34 minutes ago

asked 48 minutes ago

asked 58 minutes ago

asked 1 hour ago