A $ 200 000 loan is made with 30 years maturity and monthly compounded. The loan is based on a teasing rate of 2% and the market rate is 6%. The difference will be added to loan balance after 1 year and reset date is 1year. After that, the new pay rate is 7%. a)What is the PMT in year 1? What is the loan balance at the end of year 1 ? b) What is the PMT in year 2? What is the loan balance at the end of year 2?

Q: A loan is being repaid with 10 payments of RM2,000 followed by 10 payments of RM1,000 at the end of…

A: First 10 semi annual payment = RM 2000 Next 10 Semi annual payments = RM 1000 Annual interest rate =…

Q: You have borrowed $20,000 from a bank for a five-year period. You will be making monthly payments on…

A: Borrowed amount is $20,000 Interest rate on Loan is 12% per annum Interest rate compounded monthly…

Q: To pay off a loan of P1M, it is required that quarterly payments that increase by P1000.00 be made…

A: The cash flow diagram and the amortization schedule: A cash stream refers to a periodic cash inflow…

Q: "If a loan of 1 million is made for 7 days at a rate of 5% per annum, how much interest would be…

A: p = $1000,000 d = 7 days r = 5%

Q: Suppose you have a loan of $120,000 at an APR of 4.4% for 1 year. a. Write an amortization schedule…

A: Loan Repayment and the Amortization Schedule: A loan can be repaid by making smaller equal payments…

Q: How much will Kingston Technologies have to pay each year in 7 equal payments, starting 2 years from…

A: No. of equal installments = 7 Loan amount = $900,000 Interest = 14% per annum Annuity calculation is…

Q: A loan of $7000 is to be repaid by three equal payments one and a half year from now, three years…

A: Computation of Effective interest rate: EAR=1+15%44-1=1+0.03754-1=1.15865-1=15.865%

Q: A five year $10 000 loan requires $2770 annual payments. What is the interest rate

A: Borrowings are the liability that is used to finance the requirement of the funds. The borrower…

Q: A $16000 loan is to repaid by monthly payments of $340, the first payment is due in one year's time.…

A: Repayment of loan is made in fixed instalments for during the loan period which include part of…

Q: A loan is amortized over 7 years with monthly payments at a nominal interest rate of 5% compounded…

A: The series of cash flows given here is a form of annuity with growth. However, the growth rate here…

Q: A loan of 750000 needs to be paid in annual installments by the end of every year. The interest rate…

A: The periodic payment of a loan or debt is known as installment. The installment includes principal…

Q: A loan of P30,000 is to be repaid monthly for 5 years that will start at the end of 4 years. If…

A: Present value of deferred annutiy Present value of deferred annuity refers to the annuity which…

Q: uppose that one has a bank loan for P15,584.48, which is to be repaid in equal end-of-month…

A: In this we need to calculate present value factor and from that you will get monthly payment.

Q: How much will Kingston Technologies have to pay each year in 8 equal payments, starting 2 years from…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: A consumer loan of P80,000 is obtained that is due 3 months from now. If interest rate is 8%…

A: The borrower is required to pay the lender the initial sum borrowed and the interest on the loan.…

Q: What would be r in this problem? A P100,000 loan is to be paid monthly for 2 years with an interest…

A: Interest rate = 10% per annum semiannually compounded Compounding frequency = 2 Let the monthly…

Q: A loan of P300,000 is to be repaid in full after 2years. If the interest rate is 9% per annum. How…

A: given, P= p300,000 r=9% m=12 n=2

Q: A loan of $11,300 is to be amortized with quarterly payments over 6 years. If the interest on the…

A: Time value of money is the concept where the value of money today is higher than the value of money…

Q: How much interest is payable each year on a loan of $4,000 if the interest rate is 10% (simple…

A: Following is the answer to the given questions

Q: A loan of 10,000 is to be repaid during 5 years with equal monthly payments of p. The interest rate…

A: In this we have to calculate present value of both option.

Q: What is the size of eight equal annual payments to repay a loan of $1,000? The first payment is due…

A: Equated Monthly Installments are one part of the equally divided monthly outgoes to clear off an…

Q: A loan of $4000 at 7.5% compounded monthly requires three payments of $1000 at 6, 12, and 18 months…

A: Compound interest means the interest on the principal plus the accumulated interest on the previous…

Q: A one million peso loan is to be paid annually at an interest rate of 8.00% pa compounded monthly.…

A: Loan amount (L) = P 1 million Interest rate = 8% compounded monthly. We need to find the annual rate…

Q: what was the corresponding interest rate if it compounded quarterly?

A: Interest Rate: It is the rate for computing either the present value of an amount or the future…

Q: A loan is to be repaid quarterly for 5 years that will start at the end of 2 years. If interest rate…

A: Given Information: Quarterly payment = 10,000 Annual interest rate = 6% Number of years payment made…

Q: A loan for P 50,000 is to be paid in 3 years at the amount of P65,000. What is the effective rate of…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: A loan is to be repaid quarterly for 5 years that will start at the end of 2 years. If interest rate…

A: The Loan amount will be equal to the present value of payments today. Effective quarterly interest…

Q: A cash loan is to be reapid by paying 13,500 php quarterly for 3 years starting the ened of 4 years.…

A: Here, Quarterly Payment is 13,500 Php Payment started at the end of 4 years for 3 years Interest…

Q: ABC Bank sanctions a loan application for a 25 year mortage loan for US100,000.  The interest rate…

A: Present value refers to the current valuation for a future sum. Investors determine the present…

Q: A loan is to be repaid quarterly for 14 years that will start at the end of 4 years. If the interest…

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: A demand loan of $3000.00 is repaid by payments of $1500.00 after two years, $1500.00 after four…

A: Initial principal amount = $3000 Rate of interest for Ist 2 years = 5% per year Total amount after 2…

Q: Suppose you take out a $37,000 4-year balloon loan from a bank at an interest rate of 9.8%. What…

A: Balloon payment is future value of payment considering the interest rate and period.

Q: A loan of $ 1,000 is being paid with annuities of $ 80 at an interest rate of 5. One year after the…

A: In this problem you have to find out present value of payment paid and balance payment.

Q: The interest rate is 10%. There is a 2-year loan with two specific payments: $110 to be paid next…

A: Payment at 1 year P1 = $ 110 Payment at 2 year P2 = $ 200 Interest rate = 10% Let the current market…

Q: . A loan of Php 40,000.00 with interest rate of 15% compounded biannually, is to be discharged by a…

A: Loan amount = Php 40000 Semi-annual rate R = 15%/2 = 7.5% Number of semi-annual period = 10 First 6…

Q: For a short-term cash requirement of 85,000 TL, a 12-month maturity loan with equal installments…

A: The amortization schedule helps the lender to keep a track of the loan payments that will be…

Q: A loan is to be repaid quarterly for 9 years that will start at the end of 4 years. If the interest…

A: Quarterly payment (Q) = 10000 First payment starts after 16 quarters. Number of payments (n) = 36…

Q: A N$1000 loan is repaid by annual payments of N$150, plus a smaller final payment. The first payment…

A: solution : given loan amount      =$1000 interest rate      =10% payment at end of each year…

Q: A $60,000 loan with interest at 6% compounded quarterly is being paid off with monthly payments of…

A: The notion of the time value of money (TVM) states that an amount of money is worth more now than it…

Q: A loan of $8000 will be discharged by a cash payment of $3200 now; $1800 at the end of 4 years; $600…

A: Present Value refers to the value of cash flows today which is to be received at some future time…

Q: Auto loan requires payments of 300 Rial at the end of each interval for 3 years at a nominal annual…

A: Calculation of Payment Intervals and Accumulated Amount: Excel Spreadsheet: Excel Workings:

Q: You can obtain a loan of $200000 at a rate of 15 percent for two years. You have a choice of (i)…

A: Loan amount  $ 2,00,000.00 Time Period 2 Interest Rate 15%

Q: Suppose that you obtain a 100.000 TL loan from a bank. The maturity is 10 years and the annual…

A: P= 100,000 (Principal Amount) T= 10 years (Maturity Period) R= 10% (Annual interest rate)   S.I.…

Q: A loan of ₱20,000 will be paid semiannually for 4 years. What is the amount of each payment if…

A: Borrowings are the liability of the company which is used to finance the requirement of the funds.…