PV Computations_Worksheet_STUDENTVERSION (3)

In cell B12, create a formula using the PMT function to calculate the monthly payments for loan Option A. Use the values in cells B8, B10, and B5 for the Rate, Nper, and Pv arguments, respectively, and do not enter any values for the optional arguments. Copy the formula you created in cell B12 into the range C12:D12.

Consider a series of cash flow for a loan financing depicted by a CFD given in Figure Q2(a). With the appropriate interest rates indicated and referring to the Table of Interest. a) Construct the equation and solve the present worth equivalent. b) Construct the equation and solve the series equivalents for the cash flow series. 10%

Economics Consider a compounding loan plan where the amounts owed at EOYS 3 and 4 are $5,800 and $6.264, respectively. Approximately, what would be the amount of the loan?

if use calculator to do, what number put in CF0=?,CF1,CF2.....

A bank holds a loan portfolio with the following characteristics:   Loan i Xi Annual spread between loan rate and bank’s cost of funds Annual fees Loss to bank given default Expected default frequency Correlation 1 .6 6% 3% 20% 3% -0.2 2 .4 5% 2% 30% 5%     Question 1:  what is the return and standard deviation on loan 1? Question 2: what is the return and standard deviation on loan 2?

Toms UI IVesuTment to ychciut ed as a cost of borrowing to compensate the opportunity costs of the bank with I to the cash loaned to you. Moreover, the interest rate is usually expressed as nual percentage rate. activity ctions: On the space provided, write TRUE if the idea being expressed is correct and FALSE if otherwise. 1. In the most loan amortization schedules, amortization of discount or premium of the loan increases over time. 2. The process of obtaining future values is called discounting. 3. An annuity in which cash flows occur at the end of each period is called annuity. age

Compute the weighted-average marginal cost of funds for XYZ Bank Limited.B. Explain why it is important to use the marginal cost of funds as opposed to average cost of funds in making loan pricing decisions.

a. What interest rate would make it worthwhile to incur a compensating balance of $15,500 in order to get a 0.65-percent lower interest rate on a 2-year, pure discount loan of $230,000? b. Is it worth incurring the compensating balance to obtain the lower rate? Complete this question by entering your answers in the tabs below. Required A Required B What interest rate would make it worthwhile to incur a compensating balance of $7,500 in order to get a 0.65-percent lower interest rate on a 2-year, pure discount loan of $150,000? Note: Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places. Interest rate %

Finance

41. After conducting a rate-sensitive analysis, a bank finds itself with the following amounts of rate-sensitive assets and liabilities (RSAS and RSL) and fixed-rate assets and liabilities (FRAs and FRLs); the rate of return and cost rates on the accounts are also given: Assets RSAS @ 4.25% FRAS @ 5.15% NEA Total Amount (Million $) S 322 S 700 S 120 $1,142 Liabilities & Equity RSLS @ 3.11% FRLS @ 4.95% Equity Total If the bank wishes to set up a swap to totally hedge the interest rate risk, the bank should A. pay a variable rate of interest and receive a fixed rate of interest. B. pay a fixed rate of interest and receive a variable rate of interest. Amount (Million $) S 200 $ 800 S 142 $1,142 C. pay a variable rate of interest and receive a variable rate of interest. D. pay a fixed rate of interest and receive a fixed rate of interest.

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Help with question g.

launch.jsp?course_assessment_id=_163450_1&course_id=_281293_1&content_id%= 2196275_ دقائق. 1 1 ثانية )ثوان(۔ For a given cash flow diagram, if the interest rate i=10% , and A=$700, the F value is closest to: A F=? Years 3 i=10 % P=$ 4000 $2 $2 فرسال الحعظ والإرسات. ونفرفوق "حفط كل الإجابات"لحفظ كل الإجابات. حفظ كافة الإجابات hp ho 19 44 10 & 7 8. % A toN

(a) What is base rate ? How it is calculated? (b) State the loan pricing mechanism followed in banks of Bangladesh. (c) Calculate the loan price of Rose Bank under Cost plus Loan Pricing Method. Consider cost of capital is 26% and the borrower belongs to 'Good' Group, hence risk premium for the group is 250 basis point or 2.5 per cent. Particulars Share Capital Reserve Interest & Discount Received... Interest paid on deposits.. Savings Bank Deposit.... Current Deposits.. Fixed Deposits... Bond Issued by Bank Everything with details is already posted in the question. there are no other details

Use Table 9. Assume there is a loan loss of $4. What is the old and new capital ratio? Reserves Loans 17.65%, 11,46% O 17.65%, 12.94% 15.00 %, 11.00% O 15.00 %, 11.46% Table 9 10 90 Deposits Capital 85 15

rive loan is below. Payments of $1,987.26 are made monthly. Payment # Payment 1 1,987.26 2 1,987.26 3 1,987.26 Interest Debt Payment Balance 1,604.17 383.09 1,602.41 384.85 1,600.65 386.61 Provide your answer below: X Y Z Calculate the value of z, the balance of the loan at the end of month 3. Give your answer to the nearest dollar. Do not include commas or the dollar sign in your answer.

please help me analyze and answer the following with formula and explanation please so that i can learn. thank you

7. Calculating finance charges using the discount method and APRon a single-payment loan You are taking out a single-payment loan that uses the discount method to compute the finance charges. Computing the finance charges is done      the way they’re computed using the simple interest method. Under the discount method, a borrower receives the principal      the finance charges. For example, if the principal is $8,000 and the finance charges are $720, the borrower will receive $    .   The following equation computes the finance charges on your loan: FdFd = FsFs = P     r      t   In the equation, FdFd is the finance charge for the loan. What are the other values? P is the      amount of the loan.   r is the stated      rate of interest.   t is the term of the loan in     .   You’re borrowing $6,000 for a year and a half with a stated annual interest rate of 6%. Complete the following table. (Note: Round your answers to the nearest dollar.) Principal…

Problem E: Effective cost of Short‐term Loan:ABC will be acquiring a P4,000,000 loan from XYZ Bank. 13. The detail are 6‐month term, 3% interest, P40,000 bank chargeand P50,000 compensating balance.Required:13. How much is the compound effective annual interest?

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TASK: 2 are mu pare Apply your understanding about the present value and future value of annuities and prepare TWO Loan EMI (EMI = Equated Monthly Installments) payment schedules based on the following instructions: 1. Loan Summary and schedule of Short term loan (20 marks) 2. Loan Summary and schedule of Long term loan (20 marks) Guidelines: 1. Suggested Short term Loan period is 1 year to 3 years 2. Suggested Long term Loan period is 7 years and above 3. Each loan summary should contains following points: a. What type of loan is chosen? b. Why it is chosen? C. Interest rate, number of years (loan period) and loan amount to be assumed and clearly stated d. Starting date and ending date of the loan period is to be mentioned 4. The payment schedule should cover the following: a. Serial No. b. Date (period) c. EMI amount (EMI = Equated Monthly Installments) d. Principal component of the EMI e. Interest component of the EMI f. Interest paid to date g. Principal paid- to date h. Principal…

Part AUsing the following free cash flows and cost of equity = 7%, discount FCF year 1 back to time 0 (today).  FCF year 1 = 500; FCF year 2 = 520; FCF year 3 = 560; FCF year 4 = 590; FCF year 5 = 610 a) 429.36 b) 467.29 c) 512.85 d) 422.10Part B Using the following expected interest payments, cost of debt = 5%, and tax-rate = 21%, discount the year 4 expected payment back to time 0 (today).  Expected interest year 1 = 50; year 2 = 35; year 3 = 20; year 4 = 10;  5 = 0   a) 9.31 b) 10.11 c) 13.65 d) 6.50

Pls show complete steps thanks, all concept