For items 1-10, refer to the following: The owner of Dawn Winery decided to lend kegs of wine amounting to $ 50,000 to a certain bard who agreed to pay it within 7 years Olint: Compute for rate (1) of interest for each conversion period first) How much interest (Ic) does the bard needed to pay if the wine has an interest rate of 4.7% and is compounded monthly?
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Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
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- For items 1-10, refer to the following: The owner of Dawn Winery decided to lend kegs of wine amounting to 5 50,000 to a certain bard who agreed to pay it within 7 years. Oint Compute for rate 0) of interest for each conversion period tirst) Solve for the interest rate if it accumulated a total of 5 65,154.90 compounded quartarlyFor items 1-10, refer to the following: The awner of Dawn Winery decided to lend kegs of wine amounting to S 50,000 to a certain bard who agreed to pay it within 7 years Oint Compute for rate () of interest for each conversion period tirst) Solve for the interest rate if it accumulateed a total of $ 76,145.10 compounded semlanmuallyA 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
- Assume that you want to buy a house and have to borrow $80.000 over a term of 25 years. The annual percentage rate (APR) is quoted as 7% per annum. Calculate the monthly payments in 3 different ways a) annual payment method b) annual interest method c) effective interest method. Compare the methods and find out which method is correct.In the purchase of a rice cooker, a buyer pays P 200 cash, and he will discharge the balance, principal plus interest included at 18% compounded monthly, by paying at P 75 at the end of each month for one year. Find the cash value of the rice cooker.A fully amortizing CAM loan is made for $132,000 at 6 percent interest for 20 years. Required: a. What will be the payments and balances for the first six months? b. What would payments be for a CPM loan? c. If both loans were repaid at the end of year 5, would the lender earn a higher rate of interest on either loan? Complete this question by entering your answers in the tabs below. Required A Required B Required C What will be the payments and balances for the first six months? (Round your intermediate calculations and final answers to the 2 decimal places.) Month 1 Month 2 Month 3 Total Payment End Balance
- Safewell Co obtains a discount loan at a 12 percent interest rate. Safewell borrows $100,000 for one year. What is the effective interest rate?A borrower wants to buy a property for $375,000 and qualified for a 80 percent loan. A fixed-rate loan is available for 30 years at 6.75 percent interest, monthly payments. However, loan origination fees are $2,500 and the lender will charge 1.50 discount points. What is the annual percentage rate (APR) on the loan?you are taking a $100,000 mortgage loan for your business to be repaid over 5 years in equal semi-annual payments of $13,587 (that is, payments will be made at the end of each half-year). a) what is the APR on this loan, compounded semi-annually? b) what is the effective annual rate (EFF) on this loan? c) Calculate the loan amount that will be shown in the balance sheet of the business at the end of the first year. Clearly indicate what and how the calculated amount will be shown in the balance sheet.
- A person borrows an amount for a new house and s/he is going to make monthly payments of 8,000 $ for the next 10 years. The nominal annual interest rate is quoted as 12%. (Assume the first instalment is going to be paid 1 month after s/he borrows.) a. Find the amount borrowed by this person. b. How much does this credit worth at the end of the last payment date? c.lf this person decides on closing his/her loan after paying the 34th instalment, how much should s/he pay? It is given that the closing fee of this credit is 1,453 $.The Strug Company purchased office furniture and equipment for $8,600 and agreed to pay for the purchase by making five annual installment payments beginning one year from today. The installment payments include interest at 8%. What is the required annual installment payment? Note: Use tables, Excel, or a financial calculator (EV of $1. PV of $1, EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) Multiple Choice $1,994 $1720 $1,466 $2.154You purchase a cottage for $175,000. You obtain a 30-year, fixed rate mortgage loan at 12.5% after paying a down payment of 30%. Of the second month's mortgage payment, how much is interest and how much is applied to the principal? (Round your answers to the nearest cent.) Interest: $ _______ Applied to the principle: $________