4. A loan is being amortized by means of level monthly payments at an annual nominal rate of 9%compounded monthly. The amount of principal repaid in the 12th payment is 1000 and theamount of principal repaid in the tth payment is 3700.Calculate t.(a) 176Answer:(b) 187(c) 195(d) 204(e) 212

Amortization is the process of gradually repaying the loan. In an amortizing loan, a portion of each…

Answered: Calculate t. (a) 176 (b) 187 (c) 195…

Business

Finance

Calculate t. (a) 176 (b) 187 (c) 195 (d) 204 (e) 212

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Related questions

Q: Cully Company needs to raise $23 million to start a new project and will raise the money by selling…

A: Flotation cost refers to the expenses incurred by a company when it raises capital, typically…

Q: PB-17 Norconstant Dividends (LO) Lohn Corporation is expected to pay the following dividends over…

A: Variables in the question:DividendD1=$14D2=$10D3=$9D4=$5D5=Constant growth rate of 6% (forever)…

Q: The price of a stock is $40. The price of a one-year European put option on the stock with a strike…

A: Call option is exercised if the stock price is above the exercise price.Put option is exercised if…

Q: he following data is reported for a fund and an appropriate benchmark as well as the risk-free rate…

A: YearsFund ReturnBenchmark ReturnRisk-free…

Q: What is the expected return of a portfolio with 20% in asset A and 80% in Asset B? What is the…

A: Risk and return are essential financial principles. The term “risk” refers to the uncertainty and…

Q: Which of the following statements is TRUE? Contract is the only way in which property can be legally…

A: A contract is a legally binding agreement between two or more parties that outlines their rights and…

Q: A portfolio consists of 500 equally weighted securities. The average variance of the securities is…

A: As all securities (n) have equal weights, they have the same variance and all covariance terms are…

Q: how much must you invest annually to accumulate $50,000 after 5 years? Assume payments are made at…

A: Present value illustrates the current value of a sum of money that will be received or paid in the…

Q: urrent assets of NorthPole.com at 1.7 million, 3rd quarter $1.5 million ermanent current assets is:…

A: Current assets are those assets which can be used to pay for current laibilties that means short…

Q: eBook Thirteen years ago, Elite Elements issued a 15-year bond with a $1,000 face value and a 4…

A: Price of bond is the sum of the present value of the interest coupon payments and present value of…

Q: 1. Is the market in equilibrium or not? Is the market portfolio efficient? 2. Now, a good new for…

A: The process of figuring out the right price or value for financial assets, like stocks, bonds, or…

Q: Current share price $

A: The dividend discount model will be used here. As per the dividend discount model the value of a…

Q: You are the CFO of a company that is considering issuing its first bond issue to the public. You…

A: Equity Financing:Involves raising capital by selling ownership shares (equity) in the company.Does…

Q: First National Bank has the following balance sheet and faces a required reserve ratio on deposits…

A: Return on assets (ROA) and return on equity (ROE):Return on assets (ROA) and return on equity (ROE)…

Q: utual fund manager has a $80 million portfolio with a beta of 2.0. The risk-free rate is 4.3%, and…

A: Beta shows the risk related to the overall risk of the market and volatility shows volatility…

Q: A firm has an ROE of 4%, a debt/equity ratio of 0.4, a tax rate of 35%, and pays an interest rate of…

Q: Ayx is considering opening a new mine. The first option is a top of the line high efficiency mine…

A: The net present value is the difference between the present value of cash inflows and the present…

Q: a. What will be the number of shares that you hold after the stock dividend is paid? (Do not round…

A: The division of a company's current shares into multiple shares is referred to as a stock split. The…

Q: Required information On January 1, 2024, Avalanche Corporation borrowed $120,000 from First Bank by…

A: A risk management technique called hedging aids players in reducing the effects of negative market…

Q: Assume that in January 2020, the average house price in a particular area was $267,500. In January…

A: The yearly increase in selling price is the percentage increase in the price of a product or asset…

Q: Molen Inc. has an outstanding issue of perpetual preferred stock with an annual dividend of $2.00…

A: Stock price of perpetual preferred stock is computed by following formula:-Stock price of perpetual…

Q: Date March 2 8 13 19 22 28 31 Transaction Description Balarke Cheque 263 Cheque 264 Deposit Cheque…

A: Limit on your line of credit - $1,000.00Interest rate on positive balances - 1.7% p.a.Interest rate…

Q: Your first child was just born and you want to set up an annuity due savings plan to finance her…

A: Future Value is the amount which is received by the investor at the end of some specified period of…

Q: stock price at expiration is $118.25, what is your dollar profit or loss on this investment at…

A: A call option gives the right but not the obligation to buy at the strike price. We can determine…

Q: If a company is expected to generate annual cash flow of $500,000 and has a WACC of 12.5%, then the…

A: The valuation of a company is calculated with help of the revenue before subtracting operating…

Q: 32. Ellen purchased a life annuity with a 10-year period certain and lived for 30 years. If Ellen's…

A: Annuities are financial products typically offered by insurance companies. They involve a contract…

Q: The risk-free rate of return is 6%, the expected rate of return on the market portfolio is 15%, and…

A: Variables in the question:Rf=6%Expected rate of return on the market portfolio (Rm)=15%Beta of…

Q: Which credit card should he choose? his total anual expense for card A will be ? round to the…

A: Given:Card ACard BAPR22%22%Annual Fee ($)040Monthly balance ($)699699

Q: Walt Wallace Construction Enterprises is investigating the purchase of a new dump truck. 9%. The…

A: Present value is a method of capital budgeting based on time value of money for the selection of…

Q: Dominic Martinez has invested in something that acts like a mutual fund and that derives income from…

A: Real Estate Investment Trusts (REITs) are investment vehicles that primarily deal with real…

Q: You hold the positions in the table below. Amazon.com Family Dollar Stores McKesson Corp.…

A: Here, PriceSharesBetaA.com $ 58.001454.03FDS $ 35.001602.6MC $ 57.00931.18SPS $…

Q: Suppose GE plans to issue a note that matures in 2 years and has a 3.67% coupon rate. If the market…

A: Face value of note $1,000.00Annual coupon rate3.67%Annual coupon payment $36.70Total number of…

Q: If the market rate of interest is 10%, a $10,000, 12%, 10-year bond that pays interest semiannually…

A: A bond is a debt instrument issued by companies. The issuing company pays periodic interest or…

Q: What is the bond’s nominal yield to call?

A: First, we need to determine the price of the bond. Price of the bond is the PV of all coupons and…

Q: Suppose you deposit $1,098.00 into an account 5.00 years from today. Exactly 14.00 years from today…

A: Following formula is used to compute account's interest rate account's interest rate = -1where,n =…

Q: Atlantic Northern Inc. just reported a net income of $11,000,000, and its current stock price is…

A: 1. P/E ratio = whereMPS = Market price per shareEPS = earnings per share2. market-to-book (M/B)…

Q: ) Assume that Luke Smith wants to retire in 20 years. He expects to live for another 15 after his…

A: In financial planning the present value the required amounts in future must be equal to future value…

Q: An institutional investor is comparing management fees for two competing real estate investment…

A: Total fees charged for fund A will be fees on capital committed @0.45% plus fees on capital…

Q: A 1000 par value 5 year bond with 8% semiannual coupons was bought to yield 7.5% convertible…

A: Bonds are financial instruments that can be used for the purpose of raising funds for fixed tenure.…

Q: e MoMi Corporation's cash flow from operations before interest and taxes was $3.8 million in the…

A: Free cash flow is the cash flow which is available for the firm to distribute to the shareholders.…

Q: he Anderson Ltd. manufacturing company is a small manufacturer of plastic products. She needs to…

A: Loan payments are paid by annual payments that carry interest and loan payments and may increase…

Q: Brown Office Supplies recently reported $4422 in Net Income. It had $9,000 of bonds outstanding that…

A: EBIT is the earning before interest and tax. It can be calculated by using equation below.

Q: HotFoot Shoes would like to maintain its cash account at a minimum level of $39,000, but expects the…

A: Given:cash account at a minimum level of $39,000 = Lnet daily cash flows to be $5,400 = marketable…

Q: SAP Inc. received a $1.5 million grant under its Small Business Innovation program. SAP money and…

A: Net present value is the difference between present value of cash flow and intial investment made in…

Q: Calculate the bond equivalent yield and effective annual return on a negotiable CD that is 120 days…

A: Solution:Bond equivalent yield means the yield of the bond quoted in the bond market. The bond…

Q: Use the unpaid balance method to find the finance charge on the credit card account for November…

A: The unpaid balance method, also known as the "previous balance method," begins with the previous…

Q: A T-bill with face value $10,000 and 62 days to maturity is quoted at 3.65% -3.63% on a bank…

A: The T-bill price can be calculated using this formula,The buying price of T-bill is the asked price…

Q: Suppose you are given the following information about the default-free, coupon-paying yield curve:…

A: In order to find the solution, we have to find the interminant coupon present value by discounting…

Q: oblem 5-27 Discounted Cash Flow Analysis [LO1] appropriate discount rate for the following cash…

A: Present value is the equivalent value today of the future cash flow based on time value of money..

Q: Peter Lynchpin wants to sell you an investment contract that pays equal $12,500 amounts at the end…

A: Solution:-When an equal amount is received each period at end of period, it is known as ordinary…

Question

4. A loan is being amortized by means of level monthly payments at an annual nominal rate of 9%
compounded monthly. The amount of principal repaid in the 12th payment is 1000 and the
amount of principal repaid in the tth payment is 3700.
Calculate t.
(a) 176
Answer:
(b) 187
(c) 195
(d) 204
(e) 212

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction:

VIEW

Step 2: Computation of t:

VIEW

Solution

VIEW

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

A loan is to be amortized by n level annual payments of X where n > 5. You are given (1) The amount of interest in the first payment is 604.00 (2) The amount of interest in the third payment is 593.75 (3) The amount of interest in the fifth payment is 582.45 Calculate X.
A loan should be repaid over 8 years with 32 quarterly payments of $362.19 at j4 = 8%. Under the amortization method, what is the principal portion of the 3rd payment? A. $162.24 B. $158.24 C. $203.95 D. $199.95
2.A certain loan was to be amortized based on the schedule below at 15% interest. What is the equivalent annual uniform payment of the loan? End of Year Payment 1 P 7,000 2 P 6,500 3 P 6.000 4 P 5,500 5 P 5.000 6 P 4,500 7 P 4,000 a. P 5365.80 b. P 5333.00 c. P 6475.12 d. P 5775.08 PLEASE SHOW YOUR SOLUTIONS. THANK YOU!
A loan of X is repaid with level payments of R payable at the end of each year for n years. You are given: (i) The interest paid in year 1 is 797.50. (ii) The principal repaid in year n-4 is 865. (iii) The principal outstanding at the end of year n-1 is 1,144.50. Determine X. A B с D E 9,500 10,000 10,500 11,000 11,500
Ma3. A loan is amortized by level payments made at the end of each quarter, for 25 years: The monthly rate is 1%. The principal in the 29th payment is 8370. Find OLB69 OA. 1,115,185.53 OB. 1,101,108.22 OC. The correct answer is not shown here. OD. 1,430,370.34 OF. 1,301,108.22
5.15(a) A loan of $20,000 is to be amortized in 10 level annual payments. The interest rate for the first 3 years is 4% while the interest rate for the subsequent 7 years is 6%. Calculate the loan balance B6 by; (a) the prospective method
3. A debt of P3,500 is to be amortized by 6 equal semiannual payments with interest at 6%compounded semiannually. What is the total interest to be paid during the term of the loan?
12. An amortized loan is made at a nominal interest rate i(2) = 6%. The loan is paid off in 30 level semi-annual payments of $1,000. How much principal was paid off in the 10th раyment? (A) $537.55 (B) $547.55 (C) $557.55 (D) $567.55 (E) $577.55 (F) $597.55
A bank customer borrows X at an annual effective rate of 12.5% and makes level payments at the end of each year for n years. (i) The interest portion of the final payment is 153.86. (ii) The total principal repaid as of time (n − 1) is 6009.12. (iii) The principal repaid in the first payment is Y. Calculate Y. OA. 500 OB. 470 O C. 480 O D. 490 OE. 510
Assessment I. Construct an amortization table for a loan of PHP1000 to be paid in 4 annual payments at 10% annual effective interest rate. Complete the table below. Periodic Starting Balance Payment Principal Remaining Balance Period Interest 1. 1,000 100.00 784.53 2 784.53 315.47 237.02 315.47 54.75 286.79 4 286.79 315.47 0.00 3.
A loan of 109,517.20 is being repaid with level annual payments of Kat an annual effective interest rate of 5%. The principal repaid in the20th payment is 61.Determine K. Using Actuarial Notation
Determine the monthly payment for the installment loan. Use the installment payment formula m = 1- Amount Financed (P) $1,440 O A. $179.15 B. $35.15 O C. $125.26 O D. $366.02 P n 1+) - not Annual Percentage Rate (r) 8% Number of Payments per Year (n) 12 Time in Years (t) 4

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS