loan of $5000 is taken out today. It is due with interest at j4 = 8% in 2 years. Instead, the borrower negotiates with the lender ny payment at j₂ = 5%, what is the value of X? A. $3038.93 B. $2493.59 OC. $3581.68 D $3395 34
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- A loan of $5000 is taken out today. It is due with interest at j4 = 8% in 2 years. Instead, the borrower negotiates with the lender to pay $2500 in 1 year and $X in 3 years. If the lender can reinvest any payment at j₂ = 5%, what is the value of X? $3395.34 B. $2493.59 $3038.93 $3581.68You have taken out a $7.500,000 loan with a 4% interest rate, 30 year amortization and ten year term. What is the loan balance after the final loan payment? a. 50 b. $7.390,303 c Cannot determine with information provided d. $5,908,797In a discount interest loan, you pay the interest payment up front. For example, if a 1-year loan is stated as $42,000 and the interest rate is 8.50%, the borrower “pays” 0.0850 × $42,000 = $3,570 immediately, thereby receiving net funds of $38,430 and repaying $42,000 in a year. a. What is the effective interest rate on this loan? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) b. What is the effective annual rate on a 1-year loan with an interest rate quoted on a discount basis of 18.50%? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
- Suppose that you obtain a 100.000 TL loan from a bank. The maturity is 10 years and the annual interest rate is 10%. You will pay monthly installments. However, according to the loan agreement you will make no payments for the first three years. What would be the monthly payment amount? 830,06 TL 660,75 TL O 1.104,81 TL 879,46 TL O Diğer: What would be the annual interest rate for a 5.000.000 TL bank loan that requires 125.000 TL of total interest payment for a period of 4 months? O 7% 7,5% 8% 8,5% O Diğer:Suppose that you borrow$ 12000 at interest rate of 5% per year. If you must be repaid the loan in equal end of year payments over the next 4 years, how much must you repay at the end of each year? O a. $3672 Ob. $3384 Oc. $2672 O d. $2384A lender makes a loan of $100,000 at a 6% interest rate for 25 years with monthly payments. The lender will require an origination fee of $1,000 and will also discount the loan by some amount. Suppose the lender discounts the loan by the amount calculated in the last question. What is the annual percentage rate (APR) on this loan? a. 5.45% b. 6.00% c. 6.11% d.6.20% e. 6.65% Assume the borrower repays the loan after 8 years. What is the effective borrowing cost (EBC) on this loan? a. 6.10 b. 6.17 c. 6.33 d. 6.50 e. 6.84
- 1. Let's assume that a loan of $100,000 with an annual interest rate of 6% over 30 years pays monthly payments of $500. a. Calculate the accumulation rate b. Calculate the payment rate . c. Answer : How will the balance of the principal be at the end of the loan in relation to the original amount of the loan? Less, equal or greater? Provide calculations.If someone borrow $4000 with interest rate 4% and has to return the loan with equal payment in 4 years. The amount of the annual payment is: Select one: а. $1169.85 b. $1400 c. $1313.9 d. $1240Use the following information to answer the question: Loan amount: $245,000 Loan term: 30 years Contract interest rate: 6.00% Monthly payment: $1,468.8988 Total up-front financing costs paid to lender: $9,100 Up-front financing costs paid to third party service providers: $2.900 Calculate the lender's expected yield/IRR if the lender expects the borrower to keep the loan outstanding for the entire loan term. O None of the selections is correct 6.36% 6.00% 6.48% O 6.54%
- I need help with d. Basic ARM is made for $250,000 at an initial interest rate of 6 percent for 30 years with annual reset date. The borrower believes that the interest rate at the beginning of the year 2 will increase to 7 percent. a. Assuming that a fully amortizing loan is made, what will monthly payments be during year 1? PMT = $1498.88 b. Base on (a), what will the loan balance be at the end of year 1? FV = $246,929.97 c. Given that the interest rate is expected to be 7 percent at the beginning of year 2, what will monthly payments be during year 2? PMT = $1659.69 d. What will be the loan balance at the end of year 2?A loan is to be repaid by $1500 in one year and $2250 in four years. The borrower has asked to repay $1000 in 1.5 years and a final payment in three years. If money can earn 6% compounded quarterly, what is the size of the final payment? Select one: O a. 2735.18 O b. 2705.50 O C. 2725.50 O d. 2755.85 O e. 2715.5022. A business loan worth P150,000 is to repay in quarterly installment for 2 years. How much is the quarterly payment if money is worth 7% converted quarterly? A. P35,500 В. Р37,500 С. Р38,500 D. P39,50 23. Dina decided to purchase a P1,500,000 house and lot. After deducting the down payment, the mortgage amount is P1,000,000. If the interest is at 10% compounded monthly, how much is the monthly installment if they plan to amortize the loan in 25 years? A. P9,000.25 B. P9,031.25 C. P9,051.25 D. P9,061.25 24. If a car loan of P500,000 requires a 30% down payment. How much is the mortgage? Д 350,000 B. P360,000 C. P670,000 D. P680,000
