Calculate the present value (principal) of a loan made 4 years ago at 12% compounded quarterly if the borrower repays a total of $9,600

Q: A loan 1000 is repaid by equal annual amounts of principal for 10 years and annual interest of 7% on…

A: Equal installment  = Loan Amount / present value annuity Factor @rate of interest for life

Q: Suppose you borrowed Php 30,000 on a student loan at a rate of 8% and must repay it in three (3)…

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

Q: Determine the principal remaining after 36 monthly payments have been made for a 5-year loan of…

A: Loan (L) = P 40000 n = 5 years = 60 months Interest rate = 8% quarterly compounded Let r = Monthly…

Q: You take out a loan in the amount of $271,000 with annual equal repayments over the next 20 years.…

A: Annual Payment = P / ((1-(1+r)-n)/r) Where P = Principal Amount  r = Rate of interest n = Numbers…

Q: You borrow $5,000 at 10% per year and will pay off the loan in 3 equal annual payments starting 1…

A: Principal = 5000 r = 10% period = 3 years after 1 year of taking loan payments = 2010.57 This annual…

Q: Suppose that you have borrowed 5,000,000 from a bank with 5% interest rate for 4 years. Show the…

A: EMI or monthly or annual mortgage payments are the fixed amount paid by the borrower to the lender…

Q: Calculate the repayments required to fully repay $100 000 borrowed at 6%p.a. for 10 years with…

A: Borrowed amount "PV" is $100,000 Time period is 10 years Total number if quarters "N" are 10×4=40…

Q: You borrow $ 1 million on a 10-year loan from a bank to finance the expansion of your business.…

A: Note: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts…

Q: ABC company must repay the bank a single payment of $50,000 cash in 5 years for a loan it entered…

A: Given, Repayment in 5 years = $50,000 Present value of 1 at 8% = 0.6806

Q: What is the present value of receiving $1,000 at the end of each year for 6 years, assuming 7%…

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

Q: What is the actuarial rate for a simple loan of $1,500 that requires a repayment of 2,000 in 5

A: In this we have to calculate effective interest rate by use of present and future value.

Q: Suppose a borrower makes a $100,000 loan with annual payments at a 10 percent rate and a 10-year…

A: Annuity:   An annuity is the series of payments which is received or paid for a fixed period of…

Q: If $120,000 is borrowed to AIB at 15% interest to be paid back over 20 years, how much of the…

A: Annual worth distributes present worth into equivalent uniform value over its useful life.

Q: A recent graduate's student loans total $17,000. If these loans are at 4.2%, compounded quarterly,…

A: using financial calculator, N = 8*4 =32 I/Y = 4.2%/4 = 1.05% PV = -17,000

Q: What is the principal remaining after 20 monthly payments have been made on a $20,000 five-year…

A: A loan amortization table is a schedule of payment of loan which includes the bifurcation of…

Q: Laurier Inc. has borrowed $ 65000 from its bank. The annual interest rate on the loan is 4%…

A: Solution Given Amount borrowed $65000 Interest rate 4% Compounding Annually…

Q: Mr. O got a 5 year, 100,000 dollars balloon commercial loan. The annual interest rate is 6% and the…

A: Loan amount (L) = $100000 r = 6% per annum = 0.5% per month n = 30 years = 360 months Let X =…

Q: You borrow ksh 1,000,000 from a bank for 5 years at 10% compound interest .The loan is repayable in…

A: Present value (PV)= 1,000,000 Time (t)= 5 years Rate (r)= 10% = 0.1   The present value is how much…

Q: What payment is required at the end of each quarter for five years to repay a loan of $5600 at 6%…

A: In order to find the payment one can use excel and in excel PMT function is to be applied.

Q: A borrower had a loan of $30,000.00 at 6% compounded annually, with 6 annual payments. Suppose the…

A: Given, Loan amount = $30,000 Rate of Interest = 6% Tenure = 6 years

Q: What is the amount of each payment if Plascote Industries borrows $32,600, at  an annual interest of…

A: for calculating amount to be paid for each installment we use PMT function in excel to determine the…

Q: Suppose you borrow $70,000 at 5.25% annual interest to be repaid with a fully amortized plan over 14…

A: Annual payment (P) on a loan (PV) of $70,000 at an interest rate ( r ) of 5.25% and for 14 years (n)…

Q: If a loan of ₱45,000 will amount to ₱76,400 when converted quarterly for 3.25 years what interest…

A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…

Q: What is the effective annual rate (EAR or EFF%)?  What is the EFF% for a nominal rate of 5%,…

A: Because you have posted multiple questions, we will answer only the first question and if you want…

Q: f you borrowed $12,000 for 8 months at 7% annual simple interest, how much must you repay at the end…

A: Interest = Principal * Time * Rate

Q: A loan, amortized over 15 years, is repaid by making payments of $1,900 at the end of every month.…

A: Principal payment refers to the amount of loan that is paid back by the borrower. The loan amount is…

Q: A firm borrows 2000 for 6 years at 8%. at the end of 6 years, it renews the loan for the amount due…

A: A loan is an amount borrowed on which a certain interest is to be paid. The lumpsum due is computed…

Q: Given that the $400,000 loan with a 8% interest rate over 4 years. Show how to get the beginning…

A: Monthly payment= Loan/(PVA, 8%,4 years) = 400000/3.31212 = $ 120768

Q: A business received a for year $2,000,000 loan at an interest rate of 7% per year. The principal is…

A: NPV means PV of amount which is receive or pay in future. NPV can be find by using discounting rate…

Q: What is the total interest/profit share amount to be repaid at the end of 7 years for a loan of…

A: In finance, the term loan shows an amount borrowed by one person from another to support the…

Q: Assume you take a loan of $10,000 with interest of 5%/year compounded yearly. You intend to pay it…

A: First, determine the monthly payment of the loan using the Excel PMT function where the ‘RATE’ is…

Q: How much compound interest would you pay if you repay a total of $8,425 one and a half years after…

A: The amount of interest paid can be calculated as difference of present value and total sum paid

Q: What is the size of the final payment of money is borrowed at 6% Compounded semi annually?

A: Loan payment: These are periodic payments made by the borrower to the lender for the amount of…

Q: A debt is amortized for 4 years by a series of payments that decreases annually by ₱ 500, the first…

A: First payment = P 5000 Annual decrease in payment = P 500 Annual interest rate = 5% Period = 4 Years

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: A debt of $200,000 is accruing interest at 9% compounded daily. If it is to be repaid by monthly…

A: in this we have to calculate present value FACTOR and period required.

Q: A borrower had a loan of $70,000.00 at 6% compounded annually, with 8 annual payments. Suppose the…

A: The question is based on the concept of Loan & Amortization.

Q: Assume that you invest $1000 for 15 years in an account that pays an interest rate of 7% per year…

A: Account value at the end of 15 years (if interest is calculated only on principal amount) is…

Q: You borrow $7,000 to help pay your college expenses . You agree to repay the loan at the end of 4…

A: Given information: Principal amount is $7,000 Interest rate is 8% compounded quarterly Number of…

Q: If a loan of L is repaid in one lump sum at the end of 20 years, the amount of interest paid is 5000…

A: Here we can use the concept of time value of money to find the solution. As per the concept of time…

Q: What is the total amount of interest/profit share that must be paid back at the end of 7 years for a…

A: Compound interest is concept of interest on interest.the interest is added back onto your principal,…

Q: What is the simple interest for a principal of 560 dollars invested at a rate of 9% for 5 years?

A: The simple interest rate is calculated by multiplying the principal amount with the annual interest…

Q: Suppose you take on a loan that is subject to an annual interest rate of 12%, with the interest rate…

A: present value=future value1+rate of interestfrequency of compoundingyear×frequency

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.