Question

A local organization borrows $1,000, and the loan is to be repaid in 6 equal payments at each of the next 6 years with monthly compounding. The lender is charging a 12 percent annual interest rate on the loan. Calculate the monthly payment and construct the amortization table for the first three months only.

Answer #1

PV_{Ordinary Annuity} = C*[(1-(1+i/100)^(-n))/(i/100)] |

C = Cash flow per period |

i = interest rate |

n = number of payments |

1000= Cash Flow*((1-(1+ 12/1200)^(-6*12))/(12/1200)) |

Cash Flow = 19.55 |

Monthly rate(M)= | yearly rate/12= | 1.00% | Monthly payment= | 19.55 | ||

Month | Beginning balance (A) | Monthly payment | Interest = M*A | Principal paid | Ending balance | |

1 | 1000.00 | 19.55 | 10.00 | 9.55 | 990.45 | |

2 | 990.45 | 19.55 | 9.90 | 9.65 | 980.80 | |

3 | 980.80 | 19.55 | 9.81 | 9.74 | 971.06 |

Where |

Interest paid = Beginning balance * Monthly interest rate |

Principal = Monthly payment – interest paid |

Ending balance = beginning balance – principal paid |

Beginning balance = previous Month ending balance |

A
$6600 loan at 11.25% compounded monthly is to be repaid by three
equal payments due 3，6，and 12 months after the date of the loan.
Calculate the size of each payment.

Eve borrows 10,000. The loan is being repaid with the following
sequence of monthly payments: 100, 150, 100, 150, 100, 150, etc.
The annual nominal interest rate is 7.8% payable monthly. Calculate
the amount of principal repaid in the 13th payment.

Kirby takes out a $1,000 loan that is to be repaid with equal
payments at the end of each year for 20 years. the principal
portion of the 12th payment is 1.5 times the principal portion of
the 4th payment.
a) What is the interst rate on the loan?
b) How much are the payments on the loan?

Part B
Your firm borrows $1m to buy a warehouse. The loan is a 30-year
mortgage at 6% per year with monthly repayments without any balloon
payment. Create an amortization table, but print out only the 30
rows of monthly payments for the anniversary months, i.e., 12, 24,
36, … , 348, and 360. The 6 needed columns are: No. of month,
Beginning balance, Monthly payment, Interest, Principal reduction,
Ending balance. Except for first column, all columns are to be...

Micro Brewery borrows $330,000 to be repaid in equal
installments over a period of six years. The loan payments are
semiannual with the first payment due in six months, and interest
is at 6%. What is the amount of each payment?
a. $33,152.
b. $27,500.
c. $32,187.
d. $28,325.

A loan of $ 10000 is to be repaid in 30 equal monthly
installments with the first one paid seven months after the loan is
made. The nominal annual interest rate is 6 % compounded quarterly.
Determine the amount of the monthly payment.
Please show detailed process

Construct an amortization schedule for a $1,000, 8% annual rate
loan with 3 equal payments. The first payment will be made at the
end of the1st year. Find the required annual payments (Why is D the
correct answer?)
a)$367.2
b) $355.8
c) $367.2
d) $388.0
e)$390.7

A loan of $12,000 is to be repaid within one year with level
monthly payments, due at the beginning of each month. The 12
payments equal $1,000 each. A finance charge of $632 is also due
with the first payment. Which of the following is closest to the
effective annual interest rate on the loan?
(A) 12.7% (B) 12.9% (C) 13.1% (D) 13.3% (E) 13.5%
I'd appreciate it if you could let me know...

Construct an amortization schedule for a $1,000, 8% annual rate
loan with 3 equal payments. The first payment will be made at the
end of the1st year. Find the required annual payments
$355.8
$367.2
$388.0
$390.7
Based on the information from above, what’s the ending balance
of the amortized loan at the end of the second year
$0
$359.4
$388.3
$682.8
Based on the information from above, calculate the total amount
of interests you should pay for the amortized loan...

Construct an amortization schedule for a $1,000, 8% annual rate
loan with 3 equal payments. The first payment will be made at the
end of the1st year. Find the required annual payments
$355.8
$367.2
$388.0
$390.7
Based on the information from Question 37, what’s the ending
balance of the amortized loan at the end of the second year
$0
$359.4
$388.3
$682.8
Based on the information from Question 37 and 38, calculate the
total amount of interests you should pay...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 2 minutes ago

asked 3 minutes ago

asked 6 minutes ago

asked 12 minutes ago

asked 16 minutes ago

asked 21 minutes ago

asked 22 minutes ago

asked 27 minutes ago

asked 33 minutes ago

asked 34 minutes ago

asked 49 minutes ago

asked 57 minutes ago