A borrower and lender agree on a negative-amortizing loan in the amount of $300,000 at 4% interest for 30 years. The amount due at maturity will be $350,000. Calculate the loan balance after 20 years. $324,694.82 $350,000.00 O $326,422.53 O $141,461.68
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- Q1. A $200,000 loan amortized over 14 years at an interest rate of 10% per year requires payments of $21,215.85 to completely remove the loan when interest is charged on the unrecovered balance of the principal. If interest is charged on the original principal instead of the unrecovered balance, what is the loan balance after 14 years provided the same $21,215.85 payments are made each year? The loan balance is $ .5.10 The following shows an amortization schedule for a loan which calls for level semi-annual payments over 2 years. Fill in the missing values in the amortization schedule and calculate the effective rate of interest. Year Installment Interest paid Principle repaid Outstanding balance 0 - - 0.5 9,088.510 1 2,969.710 1.5 122.380 2 3,151.4900 - 3,151.490 0H3. The interest rate on a $6400 loan is 7% compounded semi-annually, and the loan is to be repaid by monthly payments of $155. Construct a partial amortization schedule showing the last 2 payments. Determine the total amount paid to settle the loan. Show work, not just the answer. Determine the total principal repaid. Determine the total amount of interest paid. Show work, not just the answer.
- 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. 1,301,108.22H5. Smith Development Co. contracted a 30-year FRM loan with monthly amortization of $1.5 million at an interest rate of 13% five years ago. John Smith, a partner, just talked to a loan officer and learned that he can refinance the current balance on the loan at interest rate of 12% for a FRM amortized over 25 years. However, he also estimated the total refinancing cost to be $50,000. If Smith Development Co. holds the mortgage debt for 25 more years, would you recommend them to refinance? What if it holds for three years?H4. A 10 year loan of $2,000 is repaid with payments the end of each year. There are 2 options: (i) Equal annual payments at an annual effective rate of 8.07%; (ii) Repayments of the principal of $200 each year plus interest on the outstanding balance at an effective rate of i%. The sum of all payments under each option is the same. What is i? Please show proper step by step calculation
- 3) Estimate the compound interest along with principal payable in second year when amount of loan is OMR 10000 at 8% interest. a. 11664 b. 11800 c. 12975.62 d. None of the options Clear my choice2.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!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
- (Q) A borrower takes out a 5/1 Hybrid ARM for $600,000 with an initial contract interest rate of 5.5%. The interest rate will adjust according to the 1-year LIBOR rate, plus a margin of 2%. At the first reset date, 1-year LIBOR is at 5.5%. What will the borrowers' monthly payment be immediately after the first reset? (State the payment as a positive number. Unless otherwise stated, you can assume 5/1 ARMs have a term of 30 years. Round your answer to 2 decimal places.)ASSIGNMENT #2 MA10078 LOANS & MORTGAGES (1) LUMP SUM PAYMENT. $200,000 mortgage with a 5 year term at 6% compounded semi-annually is amortized for 25 years with monthly payments. The client can put 20% of the original mortgage down without penalty once/year. At the end of the 2nd year he paid a lump sum amount. (a) What was the lump sum payment? (b) How much will the mortgage be shortened? Answer in years & months. (2) A $100,000 mortgage with monthly payments is amortized for 25 years. At the end of 5 years they increased their monthly payments by 20%. Interest is 7.5% compounded semi-annually. How much will the mortgage be shortened? (3) A $500,000 mortgage is amortized for 25 years with monthly payments. Interest is 4% compounded semi-annually. Round the monthly payments UP TO THE NEAREST $100. How much will the amortization be shortened? And what is the final payment? (4) A $40,000 loan has monthly payments of $300 at 5% compounded semi-annually. Find the final payment. How…Correctly solve thisf Q)A debt of $13,700 with interest at 5% compounded semi-annually is repaid by payments of $1,950 made at the end of every 3 months. Construct an amortization schedule showing the total paid and the total cost of the debt.