2. A loan earns an interest of 12% compounded- quarterly and should be paid within 6 yrs. How much is the loan if the mode of payment is made this way: *focal point at 4, and draw a cash flow diagram CFD P 0 1 ℗ 20,000 2 3 F = P(1 + i)n |P=F(1+i)" $ 30,000 4 P15,000 5 i=12% compounded quarterly 6 $40,000 REMEMBER THIS!
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- Effective Cost of Short-Term Credit Yonge Corporation must arrange financing for its working capital requirements for the coming year. Yonge can: (a) borrow from its bank on a simple interest basis (interest payable at the end of the loan) for 1 year at a 12% nominal rate; (b) borrow on a 3-month, but renewable on rate with 12 end-of-month payments; or (d) obtain the needed funds by no longer taking discounts and thus increasing its accounts payable. Yonge buys on terms of 1/15, net 60. What is the effective annual cost (not the nominal cost) of the least expensive type of credit, assuming 360 days per year?For numbers 1 to 3, calculate the simple interest earned. Round to the nearest centavo.1. P = Php 2,500.00, r = 6%, t = 1 year2. P = Php 9,000.00, r = 5.6%, t = 6 months3. P = Php 22,000.00, r = 7.2 %, t = 120 days4. The simple interest charged on a 60 – day loan of Php 8,400.00 is Php 119. Find the simple interest rate.5. If Php 12,000.00 is deposited for 5 years in an account that earns 9%, calculate the simple interest earnedh.Money borrowed today is to be paid in 6 equal paymentsat the end of 6 quarters. If the interest is 12% compoundedquarterly, how much was initially borrowed if quarterlypayment is P2,000.00? include a non-excel cashflow
- 2. Assuming that you obtain a bank loan for 500,000 with an annual interest payment of 10% of the principal. Compute for the present value under the following independent scenarios: a. Effective rate is 10% b. Effective rate is 8% c. Effective rate is 12%22. If $120,000 is borrowed to AIB at 15% interest to be paid back over 20 years, how much of the fifteen year's payment is interest (assume annual loan payments)? Hint: 1. Compute PMT 2. Compute the PV at the end of year 14 and the PV at the end of year 15. Compute the difference; you get third year's principal payment. 3. Interest = PMT - 15th year's principal payment. A. $10,883. B. $15,598. C. $16,789. Please provide an accurate answer.A 30 year, monthly payment ARM has the following characteristics: loan amount = $135,000, index value = 5.00%, margin = 2.50, discount points = 2, teaser rate = 6%. The payment for year one is: d $925.06 A. $943.94 B. $724.71 C. $809.39 D. $793.21
- To pay off a 100 000 00 loan, it is required that 20 semiannual payments that increase by 500.00 be made. determine the amount of the first payment if it due six months after the loan is made and interest if 7% compounded semi annuanly. draw the cash flow tnx.563, 000 loan was originally made at a rate of 2.5% compound quarterly for 1 year. At the end of this period, the loan was extended for 2 years and 6 months, with a new interest rate of 3% compounded continuously, using simple interest for anything less than a year period. a. find the amount after 3 years and 7 months. b. create the cash flow diagram for the borrowers perspective with the type of interest labelled respectively. c. briefly explain your solution.a)loan of £16,000 is repaid by annual payments of £1,500 each at the end of the year. How long does it take to repay the loan on the basis of an interest rate of 4% p.a.? b)Suppose the payment at t=14 is increased to repay the loan (a balloon payment). What is the value of the payment at t=14? Enter an answer correct to 2 decimal places c)Alternatively, the loan may be repaid via a payment at t=15�=15 (a drop payment). What is the value of the payment at t=15? Enter an answer correct to 2 decimal places
- XXX, Inc. finances tis seasonal working capital need with short-term bank loans. Management plans to borrow $65,000 for a year. The bank has offered the company a 3.5 percent discounted loan with a 1.5 percent origination fee. What are the interest payment and the origination fee requiered by the loan? What is the rate of interest charged by the bank?Everett's Electronics is receiving a senior bank loan with the following terms: $6MM principal, 5.6% interest rate, 7 year loan term, 0.75% commitment fee, and a 1% closing fee. What is the expected annual return to the lender? A. 5.85% B. 6.85% C. 5.91% D. 6.2%Equal end of year payments of $263.80 each are being made on a $1,000 loan at 15% per year compounded monthly. a. How many payments are required to repay the entire loan? b. Immediately after the third payment, what lump sum amount would completely pay off the loan? INCLUDE THE CASH FLOW DIAGRAM OF THIS PROBLEM AND ROUND OFF INTEREST RATE TO 5 DECIMAL PLACES AND YOUR FINAL ANSWER TO 2 DECIMAL PLACES.
