Question

A loan is being repaid with 20 payments of $ 1,000 at the end of each quarter. Given that the nominal rate of interest is 8% per year compounded quarterly, find the outstanding balance of the loan immediately after 10 payments have been made (a) by the prospective method, (b) by the retrospective method.

Please solve by hand, I need to know how to complete the problem without a financial calculator. Thank you.

Answer #1

A loan is being repaid with 20 payments of $ 1,000 at the end of
each quarter. Given that the nominal rate of interest is 8% per
year compounded quarterly, find the outstanding balance of the loan
immediately after 10 payments have been made (a) by the prospective
method, (b) by the retrospective method.

A loan is to be repaid in end of quarter payments of $1,000
each, with there being 20 end of quarter payments total. The
interest rate for the first two years is 6% convertible quarterly,
and the interest rate for the last three years is 8% convertible
quarterly. Find the outstanding loan balance right after the
6th payment.
Please show/explain your work, I'd like to learn how to do it
without excel

A loan of $6,300 is being repaid by payments of $70 at the end
of each month. After the 7th payment, the payment size increases to
$280 per month. If the interest rate is 6.6% compounded monthly
calculate the outstanding loan balance at the end of the first
year.

A loan is being repaid by quarterly installments of $1500 at the
end of each quarter at 10% convertible quarterly. If the loan
balance at the end of the first year is $12,000. Find the original
loan balance.

A loan is being repaid by quarterly installments of $1500 at the
end of each quarter at 10% convertible quarterly. If the loan
balance at the end of the first year is $12,000. Find the original
loan balance.

A loan of 20,000 is being repaid by 20 annual payments at the
end of year, each includes equal repayment of the principal along
with the interest at 5% effective on the unpaid loan balance. After
receiving each payment, the lender immediately deposits the payment
into an account bearing interest at an annual rate of 3%. Find the
accumulated value of the account right after the last deposit. The
accumulated value is (in two decimals).

A loan is repaid by making payments of $2000.00 at the end of
every six months for twelve years. If interest on the loan is 10%
compounded quarterly, what was the principal of the loan?

A 10 year loan is being repaid with payments at the end of each
year in the following manner. The first payment is $5,000 and each
subsequent payments decreases by $400. Find the original amount
borrowed. Assume i(4) = 6%.

A loan of $10000 is being repaid with level payments at the end
of each year for 10years. Assuming 10% effective interstate's per
year, the borrower pays an extra x dollars with their 5th payment
which allows the same level payments to exactly pay off the loan
two years earlier. Find X

A loan of 10,000 is being repaid with payments of 500 starting
one month after the loan is made and lasting as long as necessary.
A final smaller payment is made one month after the last regular
payment of 500. What is the amount of the additional smaller
payment using an interest rate of 12% compounded monthly?

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