Calculate the effective annual rate on each of the following loans: a. A $5,000 loan for two years, 10 percent simple annual interest, with principal repayment at the end of the second year b. A $5,000 loan for two years, 10 percent add-on interest, paid in 24 equal monthly installments C. A $5,000 loan to be repaid at the end of two years, 10 percent discount rate

Q: 4. Establish loan amortization schedules for 3-year loan of $20,000 (initial loan) with equal…

A: Installment = Initial amount / PVAF ( rate, years )

Q: Find the effective interest rate for a $1,500 loan for four years compounded semiannually at an…

A: Calculation of Effective Interest Rate:The effective interest rate is 8.16%.Excel Spreadsheet:

Q: Assume that you can get a loan from NCB for $264,500 for three years to buy an item of your…

A: Present Value of Ordinary Annuity refers to the concept which dictates the discounted value of a sum…

Q: Interest on a ten-year loan of 10,000 loan is at an annual effective interest rate of i. The sinking…

A: A sinking fund is a fund created by an organization for payment of any future liability which is…

Q: Establish loan amortization schedules for the following loans to the nearest cent. a. A 36-month…

A: When a loan is taken, borrower requires to pay interest on it. Apart from interest, instalment of…

Q: An item can be purchased for 4,500 or for 1,500 down payment and installment payment of 115 every…

A: Loan amount (L) = Purchase price - Down payment = 4500 - 1500 = 3000 Installment payment (A) = 115…

Q: et up an amortization schedule for a P5,000 loan to be repaid in equal installments  at the end of…

A: Laon amortization schedule means where repayment during the life of loan is written with interest.…

Q: Determine the amount due on the compound interest loan. (Round your answers to the nearest cent.)…

A: We need to use compound interest formula to calculate the amount due A=P(1+i)n Where A= amount…

Q: Prepare an amortization schedule for a five-year loan of $71,500. The interest rate is 7 percent per…

A: Working note:

Q: Prepare an amortization schedule for a three year loan of $57,000. The interest rate is 8% per year,…

A: Given: Loan amount = $57,000 Interest rate =8% Years = 3

Q: 4. Establish loan amortization schedules for 3-year loan of $20,000 (initial loan) with equal…

A: Answer  Loan amount = $20,000 Interest rate =5%

Q: A 4 year loan of $125,000 with equal installment payments at the end of each year.The interest rate…

A: Therefore, P*[1-1/(1+r)^n]/r = 125,000  => P*[1-1/(1+7%)^4]/7% = 125,000 =>P*[1-0.7628]/7% =…

Q: A loan is amortized over 5 years with monthly payments at a nominal interest rate of 12% compounded…

A: First monthly payment (M) = 200 Monthly growth rate (g) = 1% Monthly interest rate (r) = 12%/12 = 1%…

Q: To borrow $600, you are offered an add-on interest loan at 9 percent. Two loan payments are to be…

A: Given: Borrowed amount =$600Annual interest =9%   Amount to be paid =Principal + Interest=$600 +…

Q: A loan of 10.000 TL is repaid in equal annual installments at 10% effective interest rate per year.…

A: Given: Loan amount= 10000 TL Annual effective rate =10% Interest amount in third payment = 868.24…

Q: A loan is repayable by a decreasing annuity payable annually in arrears for 20 years. The repayment…

A: Loan period = 20 Years First payment amount = $ 6000 Annual decrease in payments = $ 200 Interest…

Q: A loan is being repaid with 20 payments of 1500 at the end of each year. Interest is calculated at…

A: In the question above. With prospective method we will discount all the outstanding payments due on…

Q: Prepare an amortization schedule for a three-year loan of $108,000. The interest rate is 9 percent…

A: In this we have to present value FACTOR and find annual equal payment.

Q: For the following loan, make a table showing the amount of each monthly payment that goes toward…

A: The value of new principal considers both the interest amount and the principal amount repaid and…

Q: Calculate the effective annual rate on each of the following loans: 1. $5,000 loan for 2 years,…

A: Effective interest rate refers to the real return that an individual or company earns on a saving…

Q: Prepare an amortization schedule for a three-year loan of $111,000. The interest rate is 10 percent…

A: A loan amortization table is a schedule of payback of a loan in equal installments planned at a…

Q: Prepare an amortization schedule for a $96,000 loan to be repaid in equal installments at the end of…

A: Calculation of yearly payments = [P x R x (1+R)^N]/[(1+R)^N-1] P = Principal amount R = Rate of…

Q: You obtain a loan for ₱ 1,500,000.00 payable in three equal annual installments of ₱50,000.00 each.…

A: The present value of the loan: The loan obtained is the present value of all loan installments at…

Q: Establish loan amortization schedules for the following loan to the nearest cent: A 25-year mortgage…

A: A type of loan in which the borrower has to make a schedule for the periodic payment regarding both…

Q: PLEASE DO THE FOLLOWING ON AN EXCEL SPREADSHEET: Consider a loan of $1,000,000 with the nominal…

A: Given information : Loan amount $1,000,000 Annual interest rate 10% Time period (years) 15…

Q: A loan of $10,000 is repaid by 20 level installments at the end of every 6 months. The nominal rate…

A: Loan refers to the amount borrowed which creates liability for fund receiver and level installments…

Q: Establish loan amortization schedules for 3-year loan of $20,000 (initial loan) with equal payments…

A: Answer Loan amount = $20,000 Interest rate = 5%

Q: Prepare anamortization schedule for a $50,000 loan that pays10% interest annually for five…

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

Q: Consider a student loan of $12,500 at a fixed APR of 12% for 20 years. a. Calculate the monthly…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: Determine the annual payment on a OMR15,000 loan that is to be amortized over a four-year period and…

A: Given, A= OMR15,000 n=4 r= 10%

Q: A loan is being repaid with payments of $750 at the end of each year for 25 years. The annual…

A: Loan amount= 750 Year = 25 Rate = 5%% Investment rate = 6%

Q: Establish loan amortization schedules for 3- year loan of 20.000 (initial loan) with equal payments…

A: Given Years 3 Loan  20,000.00 RATE 5%

Q: Calculate the annual end‐of‐year loan payment.

A: Loan refers to the net amount of borrowings that a borrower needs from the lender in order to fund…

Q: A loan is repayable by a decreasing annuity payable annually in arrears for 20 years. The repayment…

A: Loan: when money is given to another party in exchange for repayment of the (principal amount +…

Q: Determine the amount due on the compound interest loan. (Round your answers to the nearest cent.)…

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

Q: Find the interest paid on a loan of $2,600 for three years at a simple interest rate of 10% per…

A: Formula: Interest amount = Principal amount x Time period x Rate of interest.

Q: Establish loan amortization schedules for 3-year loan of $20,000 (initial loan) with equal payments…

A: Loan amortization is a type of loan where the borrower is required to pay periodical or scheduled…

Q: You are about to borrow $25,000 from a bank at an interest rate of 10% compounded annually. You are…

A: The schedule that shows the nominal amount of principal and interest that is paid in amortizing loan…

Q: Prepare an amortization schedule for a three-year loan of $57,000. The interest rate is 8 percent…

A: Amortization Schedule: It is a schedule showing the loan payments, principal amount, and interest on…

Q: A loan of $ 7000 is to be repaid in 46 equal monthly installments with the first one paid seven…

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

Q: A loan is being repaid by 20 level annual payments of R, where R is three times the amount of…

A: Given: Number of level annual payments: 20 Level payments: R R is three times interest accruing in…