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- Mike 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 yearsJee 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) 43.72brian 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 yearsAlex receives level payments at the beginning of each year for 5 years. He deposits thepayments into a fund. The deposits earn an annual effective interest rate of 6%, which is paid atthe end of each year. The interest is immediately reinvested at an annual effective interest rateof 3%.At the end of 5 years, the accumulated value in the fund is 800. Calculate the amount of eachlevel payment. a. 137.74 b. 150.42 c. 142.39 d. 150.67 e. 134.75
- Mr. 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 yearsJoseph 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.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?
- 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?\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)