Question

26.

Sharpe General Stores borrowed $250,000 for 10 years at a 12 percent interest rate, compounded quarterly, and makes an equal amount of payment at the end of each quarter. What is the loan balance remaining after the 3rd year?

$47,255

$40,203

$23,420

$29,002

$19,885

Answer #1

Amount borrowed = $250,000

Period = 10 years or 40 quarters

Annual interest rate = 12%

Quarterly interest rate = 3%

Let quarterly payment be $x

$250,000 = $x/1.03 + $x/1.03^2 + … + $x/1.03^40

$250,000 = $x * (1 - (1/1.03)^40) / 0.03

$250,000 = $x * 23.11477

$x = $10,816

Quarterly payment = $10,816

After 3rd year:

Remaining period = 7 years or 28 quarters

Loan outstanding = $10,816/1.03 + $10,816/1.03^2 + … +
$10,816/1.03^28

Loan outstanding = $10,816 * (1 - (1/1.03)^28) / 0.03

Loan outstanding = $10,816 * 18.76411

Loan outstanding = $202,953

So, remaining loan balance after 3rd year is $202,953

Time remaining: 1:52:42
19.
Midtown Enterprises borrowed $100,000 for 5 years at a 12
percent interest rate, compounded monthly, and makes an equal
amount of payment at the end of each month. How much principal
payment is the firm making during the 2nd year?
$17,498
$11,164
$13,420
$15,447
18,970

You borrowed $20,000 from a bank at an
interest rate of 12%, compounded monthly.
This loan will be repaid in 60 equal monthly
installments over 5 years. Immediately after
your 30th payment if you want to pay the
remainder of the loan in a single payment, the
amount is close to:

a) "Clay borrowed $32,000 from a bank at an interest rate of
11.16% compounded monthly. The loan will be repaid in 72 monthly
installments over 6 years. Immediately after his 48th payment, Clay
desires to pay the remainder of the loan in a single payment.
Compute the total amount he must pay."
b) "Suppose that $5,000 is placed in a bank account at the end
of each quarter over the next 7 years. What is the future worth at
the...

RM60,000 is borrowed for 12 years at 5% compounded annually. The
borrower does not pay interest currently and will pay all accrued
interest at the end of 12 years together with the principal.
(a) Find the amount annual sinking fund deposit necessary to
liquidate the loan at the end of 12 years if the sinking fund earns
3% yearly compounding and the borrower make first payment
immediately.
(b) Prepared a sinking fund schedule.
Ans: (a) RM 7,371.25
(PLS DUN ANSWER...

Andrew borrowed $7,000 at 5% interest compounded annually for 3
years. He did not need to make payments but instead would repay the
entire loan with interest at the end of 3 years. Being a
responsible bloke, Andrew decided to set up a sinking fund to
ensure he had the money ready to repay this loan. On the day Andrew
borrowed money he also found a bank offering 4% interest compounded
quarterly. How much must he deposit at the end...

Five years ago you borrowed $250,000 for a ten-year period at a
fixed interest rate of 9% p.a. with interest compounded on an
annual basis. You have been making regular annual payments on your
loan and you now wish to repay the amount outstanding on this loan
in full. The total amount you need to repay today is
closest to:
$151,521.
$168,850.
$194,775.
$217,051.

Five years ago you borrowed $250,000 for a ten-year period at a
fixed interest rate of 9% p.a. with interest compounded on an
annual basis. You have been making regular annual payments on your
loan and you now wish to repay the amount outstanding on this loan
in full. The total amount you need to repay today is
closest to:
$151,521.
$168,850.
$194,775.
$217,051.

A fully amortized mortgage is made for $100,000 for 10 years.
Interest rate is 6 percent per year compounded monthly.
What is the monthly payment amount?
What is balance of the loan at the end of 5 years?
What is the total interest paid by the end of the fifth
year?
What is the total principal paid by the end of the tenth
year?
SHOW WORK AND DONT USE EXCEL

Five years ago you borrowed $250,000 for a ten-year period at a
fixed interest rate of 9% p.a. with interest compounded on an
annual basis. You have been making regular annual payments on your
loan and you now wish to repay the amount outstanding on this loan
in full. The total amount you need to repay today is closest
to:
A $151,521.
B $168,850.
C $194,775.
D $217,051.

What would your payment be on a 30-year, OMR 250,000 loan at 10%
interest compounded quarterly assuming the payments are made
semi-annually?

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