A firm has two simple loans : 150,000 €, due in 1.5 years, 8% p.a. compounded quarterly; 80,000 €, due in 3 years, 11% p.a. simple. Bank agrees on a replacement of those payments by one payment of 50,000 € in six months and the final payment in a year from now. What is the amount of the final payment in a year from now if the current rate is 10%?
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.
A firm has two simple loans :
- 150,000 €, due in 1.5 years, 8% p.a. compounded quarterly;
- 80,000 €, due in 3 years, 11% p.a. simple.
Bank agrees on a replacement of those payments by one payment of 50,000 € in six months and the final payment in a year from now. What is the amount of the final payment in a year from now if the current rate is 10%?
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