Question

You borrow $50,000 from a bank at the rate of 8 percent per year. You are...

You borrow $50,000 from a bank at the rate of 8 percent per year. You are planning to pay off this loan in 5 years in equal quarterly payments. How much would be each payment?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Loan amount = $50,000

Calculating the Quarterly Loan Payment:-

Where, P = Loan amount = $50,000

r = Periodic Interest rate = 8%/4 = 2%

n= no of periods = 5 years*4= 20

Quarterly Payments = $3057.84

So, size of each Payment is $3057.84

If you need any clarification, you can ask in comments.     

If you like my answer, then please up-vote as it will be motivating            

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 considering making a loan at the bank. You will borrow $10,000 from the bank...
You are considering making a loan at the bank. You will borrow $10,000 from the bank today. The interest rate on the loan is 5 percent nominal compounded annually. You will completely pay off the loan with two equal payments. The first payment is due one year from today, and the second payment is due two years from today. Your loan payments will be $5378.05 each. How much will your loan balance be after you make the first payment? A....
Tim wants to borrow $51000 from the bank and is choosing among two possible loasn. The...
Tim wants to borrow $51000 from the bank and is choosing among two possible loasn. The interest rate on both loans is 2.90 percent per quarter. Loan A would require him to make 48 equal quarterly payments, with the first payment made to the bank in three months. Loan B would also require him to make equal quarterly payments to the bank. However, the quarterly payment associated with loan B would be $152 less than the quarterly payment associated with...
1. Holly just borrowed 68,157 dollars from the bank. She plans to repay this loan by...
1. Holly just borrowed 68,157 dollars from the bank. She plans to repay this loan by making equal quarterly payments for 10 years. If the interest rate on the loan is 10.96 percent per year and she makes her first quarterly payment in 3 months from today, then how much must Holly pay to the bank each quarter?
A five-year, $50,000 loan is secured at a nominal rate of 4% per year, compounded quarterly....
A five-year, $50,000 loan is secured at a nominal rate of 4% per year, compounded quarterly. If immediately after making your second quarterly payment you decide to pay off the loan, what would be the balance amount?
You are about to borrow $10,000 from a bank at an interest rate of 8%.. You...
You are about to borrow $10,000 from a bank at an interest rate of 8%.. You are required to make 15 equal payments of $____ per year. How much of the 11thpayment (t=11) will go towards principal repayment? Question 7 options: 785-805 805-815 815-825 825-835 None of the above
In order to buy a car, you borrow $16,000 from a friend at 7%/year compounded monthly...
In order to buy a car, you borrow $16,000 from a friend at 7%/year compounded monthly for 4 years. You plan to repay the loan with 48 equal monthly payments. The monthly payments are $383.14. a) How much interest is in the 23rd payment? b) what is the remaining balance after the 37th payment? c) Three and a half years into the loan, you decide to pay it off. You have not made the payment due at that time. What...
In order to buy a car, you borrow $16,000 from a friend at 7%/year compounded monthly...
In order to buy a car, you borrow $16,000 from a friend at 7%/year compounded monthly for 4 years. You plan to repay the loan with 48 equal monthly payments. The monthly payments are $383.14. a) How much interest is in the 23rd payment? b) what is the remaining balance after the 37th payment? c) Three and a half years into the loan, you decide to pay it off. You have not made the payment due at that time. What...
You received a loan from a bank for $100,000 at an interest rate of 6%. You...
You received a loan from a bank for $100,000 at an interest rate of 6%. You are expected to pay back the loan in equal monthly payments over the next 10 years. Calculate: 1. your monthly payment 2. how much you owe after 5 years of payments 3. how much of the first payment went to interest 4. wow much of the first payment went to principal
You borrow 50,000€ from a bank. The bank offers the following conditions: rate of interest: 3%;...
You borrow 50,000€ from a bank. The bank offers the following conditions: rate of interest: 3%; n:10years. After having paid the first two payments, you decide to pay 25,000€ in advance, and to reduce the amount of the remaining payments. Find the payments
1. A man has a loan of 50,000 in a bank that gives 12% simple interest....
1. A man has a loan of 50,000 in a bank that gives 12% simple interest. How much is the interest if he plans to pay after 5 years? 2. A man can save 10,000 per month for 2years, If the bank offers 5% compounded monthly, what is n? 3. A man has a loan of 50,000 in a bank that gives an interest rate of 12% compounded quarterly? If he plans to pay after 6months, how much is the...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT