Question

(1 point) A company borrows $200000, which will be paid back to the lender in one...

(1 point) A company borrows $200000, which will be paid back to the lender in one payment at the end of 12 years. The company agrees to pay monthly interest payments at the nominal annual rate of 8% compounded monthly. At the same time the company sets up a sinking fund in order to repay the loan at the end of 12 years. The sinking fund pays interest at an annual nominal interest rate of 4% compounded monthly. Find the total amount of the monthly payments, that is, the sum of the interest payment and the sinking fund payment.

Math   Statistics-And-Probability   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

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
A company borrows $160000, which will be paid back to the lender in one payment at...
A company borrows $160000, which will be paid back to the lender in one payment at the end of 8 years. The company agrees to pay monthly interest payments at the nominal annual rate of 11% compounded monthly. At the same time the company sets up a sinking fund in order to repay the loan at the end of 8 years. The sinking fund pays interest at an annual nominal interest rate of 15% compounded monthly. Find the total amount...
A company borrows $170000, which will be paid back to the lender in one payment at...
A company borrows $170000, which will be paid back to the lender in one payment at the end of 6 years. The company agrees to pay yearly interest payments at the nominal annual rate of 13% compounded yearly. At the same time the company sets up a sinking fund in order to repay the loan at the end of 6 years. The sinking fund pays interest at an annual nominal interest rate of 5% compounded yearly. Find the total amount...
A company borrows $140000, which will be paid back to the lender in one payment at...
A company borrows $140000, which will be paid back to the lender in one payment at the end of 12 years. The company agrees to pay semi-annually interest payments at the nominal annual rate of 13% compounded semi-annually. At the same time the company sets up a sinking fund in order to repay the loan at the end of 12 years. The sinking fund pays interest at an annual nominal interest rate of 8% compounded semi-annually. Find the total amount...
Nicola borrows a $24000 loan from Steve. She agrees to pay interest on the loan at...
Nicola borrows a $24000 loan from Steve. She agrees to pay interest on the loan at the end of each year for 8 years, and will repay the capital by accumulation of a sinking fund. The sinking fund deposits are such that the net amount of the loan decreases linearly, resulting in a level repayment of principal at the end of each year. The interest rate on the loan is 5% over the first 4 years and 4.5% over the...
A company borrows $52000 at 10.75% simple interest from State Bank to purchase equipment. State Bank...
A company borrows $52000 at 10.75% simple interest from State Bank to purchase equipment. State Bank requires the company to make monthly interest-only payments and pay the full $52000 at the end of 5 years. In order to meet the 5 year obligation of $52000,the company makes equal deposits at the end of each month into a sinking fund with Wolf Savings. The sinking fund earns 6.75% compounded monthly. Note: This problem is set to allow for an answer of...
A local organization borrows $1,000, and the loan is to be repaid in 6 equal payments...
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.
Ricky borrows X amount for 30 years at nominal rate of 12% compounded monthly from BANKFB....
Ricky borrows X amount for 30 years at nominal rate of 12% compounded monthly from BANKFB. If he pays the principal as equal monthly installments for 30 years and on top of this payment, he pays every month the interest on the outstanding balance. Immediate after 200th payment, the BANK FB sells the contract on the future payments to BANK SD at a price of 102,891.65. Find the value of the initial loan amount X.
A student loan paid faithfully for 23 years had the following statistics: Borrowed: $26,400 Paid back...
A student loan paid faithfully for 23 years had the following statistics: Borrowed: $26,400 Paid back to date: $32,700 Still Owes: $45,276.63 Monthly Payment : 282.524 Annual Rate of Interest : 12% Given her monthly payment, how long will it take for the student to pay their loan back? What amount of monthly payment would have allowed the student to pay their loan back in 23 years? (Hint: You can either use Excel’s PMT function to answer this or guess...
A manufacture borrows P2,843,737 with interest at 8% compounded monthly, and agrees to discharge the loan...
A manufacture borrows P2,843,737 with interest at 8% compounded monthly, and agrees to discharge the loan by a sequence of equal monthly payments for 5 years with the first payment at the beginning of the 4th year. Find the periodic payment. DEFERRED ANNUITY.
Q.1 You deposit $1,000 in your bank account. If the bank pays 4% compounded interest, how...
Q.1 You deposit $1,000 in your bank account. If the bank pays 4% compounded interest, how much will you accumulate in your account after 10 years? What if the bank pays interst on semi-annual basis? Q.2 If you earn 6% per year on your bank account, how long will it take an account with $100 to double to $200? Q.3 Your landscapping company can lease a truck for $8,000 a year(paid at year-end) for six years. It can instead buy...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT