Question

A demand loan of $8000.00 is repaid by payments of $3500.00 after two years, $3500.00 after four years, and a final payment after eight years. Interest is 7% compounded monthly for the first 2 years, 8% compounded semi-annually for the next two years, and 8% compounded quarterly thereafter. What is the size of the final payment?

Answer #1

Demand Loan = $8,000.00

- First payment is repaid after two years = $3500

Interest is compounded monthly for first 2 years at 7%

Loan balance with interest after 2 years =
8000(1+0.07/12)^{2*12}

= $ 9198.45

Loan balance after first repayment = $ 9198.45 - $3500

= $ 5,698.45

- Second payment is repaid after next two years = $3500

Interest is compounded semiannually for next 2 year at 8%

Loan balance with interest for next 2 years = $
5698.45(1+0.08/2)^{2*2}

= $ 6666.38

Loan balance after second repayment = $6666.38 - $3500

= $ 3,166.38

- After that Interest is compounded quarterly for last four years at 8%

Loan balance with interest for last 4 years = $
3166.38(1+0.08/4)^{4*4}

= $ 4346.76

So, **the size of last payment is $ 4346.76**

A demand loan of $6000.00 is repaid by payments of $3000.00
after two years, $3000.00 after four years, and a final payment
after seven years. Interest is 6% compounded quarterly for the
first two years, 7% compounded semi dash annually for the next
two years, and 7% compounded quarterly thereafter. What is the
size of the final payment?

A demand loan of $8000 is repaid by payments of $3000 after
fifteen months, $4000 after thirty months, and a final payment
after four years. If interest was 8% for the first two years and
9% for the remaining time, and compounding is quarterly, what is
the size of the final payment?
The size of the final payment is
$.
(Round the final answer to the nearest cent as needed. Round
all intermediate values to six decimal places as needed.

5) A debt of $5000.00 is to be repaid by payments of $2000.00
after two years, $2500.00 after three years and a final payment
after five years. Determine the size of the final payment if
interest is 10% p.a. compounded semi-annually.

A debt of $45,000 is repaid over 8 years with payments occurring
monthly Interest is 5 % compounded annually.
(a) What is the size of the periodic payment?
(b) What is the outstanding principal after payment 23?
(c) What is the interest paid on payment 24?
(d) How much principal is repaid in payment 24?

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 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?

a
loan, amortized over 5 years, is repaid by making payments of $1200
at the end of every month. if interest rate is 3.50% compounded
semi- annually, what was the loan principal?

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 $100,000 is to be repaid by two equal repayments of X.
One repayment is due at the end of 2 years, the second repayment is
due at the end of 6 years. The interest rate is at 4% p.a.
compounded quarterly for the first 3 years and then 4.4% p.a.
compounded quarterly thereafter. What is the size of each
repayment?
a. $57,989.46
b. $56,779.19
c. $58,222.14
d. $58,762.97

Harris Machinery received a demand loan of $180,000. It repaid
$70,000 at the end of the first year, $90,000 at the end of the
second year, and the balance at the end of the third year. The
interest rate charged on the loan was 5.75% compounded
semi-annually during the first year, 5.50% compounded quarterly
during the second year, and 4.75% compounded monthly during the
third year.
a. What was the balance of the loan at the end
of the first...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 8 minutes ago

asked 21 minutes ago

asked 24 minutes ago

asked 28 minutes ago

asked 40 minutes ago

asked 50 minutes ago

asked 56 minutes ago

asked 58 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago