at the end of each year for 10 years. The first payment is 500, and each of the subsequent payment increases by 20 per year. Find the principal repaid during the 6th payment. Mike loans Denver 12,000. Denver repays the loan by paying 5,000 at the end of two years and 10,000 at the end of four years. The money received at t = 2 is immediately reinvested at an annual effective interest rate of 2.4%. Find Mike's annual yield rate.
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- Jee has a loan with an effective annual interest rate of 4%. He makes payments at the end of each year for 11 years. The first payment is 100, and each subsequent payment increases by 10 per year. Calculate the interest portion in his 5th payment. A) 39.82 B) 40.44 C) 41.25 D) 49.25 E) 43.72Mike borrows X from a bank that charges an effective rate of 10 % a year. He repays the loan with payments at the end of every six months for n years. The interest paid in the first payments is $ 2,928.53. The interest paid in the last payment is $ 209.83. Find n. answers: A. 11 years B.12 years C. 13 years D. 14 years E. 15 yearsbrian borrows a sum of money from a bank at stipulated interest rate componded annually.The loan is to be repaid in five annual installment and in the third year Brian pays a little extra on the principal (pre-payment).Fill out the amortization table below and answer the question that follow. Term of the loan (years) 5 Interest rate 8% Loan Amount $ 5,504.00 Pre-Payment $ 157.00 Annual Payment $ 16,542.15 Years Beginning of Year Loan Balance Payment Interest Principal Pre-Payment End of Year Loan Balance 1 $ $ $ $ 2 $ $ $ $ 3 4 5 $ -
- Devin received a 15 year loan of $305,000 to purchase a house. The interest rate on the loan was 4.10% compounded semi-annually. a. What is the size of the monthly loan payment? Round to the nearest cent b. What is the balance of the loan at the end of year 4? Round to the nearest centHolden borrows $209,433 from a financial institution with equal end-of-year payments of $24,600. If the annual interest rate is 10%, how long will it take for him to pay the loan and its interest back? 10 years 15 years 20 years 25 yearsMr. Joe takes a loan P amount from the bank. The loan attracts an interest of 1.5% per month compunded continuously. If after 5 years the total monthly payment by Mr. Joe is $30,000. Find the present value. The total payment paid is 10 years
- Joseph borrowed an amount of P512,390 and promise to pay every year for 5 years. He paid a fixed amount at the end of first year and the succeeding payments are P980 more than the previous payment. If the interest rate is 11.622% compounded quarterly, determine the following: 1.Interest rate per month,%? 2.Amount paid at the end of 3 years. 3.Amount to be paid at the end of 5 years, if he failed to pay the amount at the end of 3rd and 4th year. 4 Amount paid at the end of 3 years. 5.Amount to be paid at the end of 5 years, if he failed to pay the amount at the end of 3rd and 4th year.ABC bank loans $250,000 to Yossarian to purchase a new home. Yossarian will repay the note in equal monthly payments over a period of 30 years. The interest rate is 12 percent. Required: If the monthly payment is $2,571.53, how much of the first payment is interest expense, and how much is principal repayment?\Jason takes out a loan at 10% compounded annually for 7 years. At the end of this period, he pays off the loan at a value of $23,384.61. What amount did he borrow?
- Wade Ellis buys a new car for $16,177.57. He puts 10% down and obtains a simple interest amortized loan for the rest at 11 1/2% interest for four years. (Round your answers to the nearest cent.) (a) Find his monthly payment. (b) Find the total interest.(c) Prepare an amortization schedule for the first two months of the loan. Payment Number PrincipalPortion InterestPortion Total Payment Balance 0 n/A n/A n/A n/A 1 ? ? ? ? 2 ? ? ? ?Two years ago, Paul borrowed $10000 from his sister Gerri to start a business. Paul agreed to pay Gerri interest for the loan at the rate of 4% /year, compounded monthly. Paul will now begin repaying the amount he owes by amortizing the loan (plus the interest that has accrued over the past 2 years) through monthly payments over the next 5 years at an interest rate of 3% /year compounded monthly. a) Find the size of the monthly payments Paul will be required to make. b) Find the outstanding principal at the end of 3 years. (Using formula)John borrows $15000 for 5 years at an annual effective interest rate of %9. At the end of each year she pays the lender $1000 and deposits a level amount necessary to repay the loan in full after 5 years into a sinking fund that earns an annual effective interest rate of %4. Determine the total annual payment that John makes.