A businessman obtains a loan of $100,000 for a 5-year term with an interest rate of 7% per year, compounded quarterly, which must be paid in quarterly installments by the French amortization system. If the interest rate is reset to 6% annually compounded quarterly after payment 16; determines the value of the new quarterly installment. 1) $2356.87 2) $5932.82 3) $6947.23 d) $5,532.76 e) $4,578.92
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A businessman obtains a loan of $100,000 for a 5-year term with an interest rate of 7% per year, compounded quarterly, which must be paid in quarterly installments by the French amortization system. If the interest rate is reset to 6% annually compounded quarterly after payment 16; determines the value of the new quarterly installment.
1) $2356.87
2) $5932.82
3) $6947.23
d) $5,532.76
e) $4,578.92
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- A businessman wishes to borrow an amount of K4 million for a term of 3 years.The agreed rate of interest is 10% per annum effective for the first 2 years, and 6%per annum effective for the final year.Repayments on the loan are made annually in arrears.The amount of the level annual repayment is K1,590,328.58.(i) Draw up the loan schedule for the full three-year period.(ii) Calculate what percentage of the loan has been repaid by the end of year 2.(iii) Explain how this percentage figure would alter if the rate of interest had insteadbeen 6% for the first two years and 10% for the final year.1. A fully secured loan of P30,000 was to be amortized by 10 equal semi-annual payments, the first payment to be made 6 months after the loan finalization. After the payment was made, the debtor was in a position to settle the entire debt balance by a single payment on that date. If the interest on the loan is 12% compounded semi-annually, what would be the amount of this single payment? 2. A man agreed to pay the loan he is borrowing from the bank in six (6) equal end of the year payments of P71,477.70. Interest is 18% per annum compounded annually and is included in the yearly amount he will be paying in the bank. How much is the man borrowing from the bank? 3. A car dealer advertises the sale of a car model for a cash price of P280,000.00. If purchased on installment, the required down payment is 15%, and the balance payable in 18 equal monthly installments at an interest rate of 1.5% per month. How much will be the required monthly payments?A company borrows $126,500 from a bank. The interest rate on the loan is 10 percent compounded semiannualy. The company agrees to repay the loan in equal semiannualy installments over the next 10 years. The first payment is to be made six months from now. (Use factor table in Appendix B for calculation) Required 1: What is the amount of each semiannual payment? $ Required 2: In the first payment, what is the amount of principal cancelled? $ Required 3: In the second payment, what is the amount of interest paid? $ Required 4: In the last payment, what is the amount of the last payment to cancel the loan? $ Required 5: Assume the debt contract has the option to make one extraordinary payment of up to 25% of the principal. If the company decides to exercise the right and make the extra payment together with the 18th payment, how much it must pay in dollars at the 18th payment to pay off the loan? $ Required 6: What is the amount reported in the annual audited balance sheet for…
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