If a friend who’d never heard of amortization before asked you to explain how loan payments work, what would you say?

Q: An investment of F650 is made at the beginning of six months for 10 years and 6 months. How much…

A: An annuity is the total of all periodic payments or investments made at a fixed rate over a certain…

Q: the firm have a yield rate of 8.1%. Bonds with a similar debt rating has a default rate of 3.1% and…

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Q: Compute the net cash provided by operating activities.

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Q: What should you do? What is the YTM of the

A: The yield to maturity on a bond is the yearly annual rate of interest earned if the bond is held…

Q: The current price of a stock is $22, and at the end of one year its price will be either $29 or $15.…

A: Asset price $22 Strike price $22 Time/step, Δt 1 Years Risk-free rate, r 3%

Q: RED ANNUITY: (please don’t use excel) In a series of quarterly payments of P960 each, the first…

A: Present value of annuities is equivalent amount today considering the period and interest rate…

Q: TY DUE: (please DON’T use excel) A sala set is bought for P2,500 down payment and P750 payable at…

A: Cash price today is the equivalent that is equivalent to the monthly payment and down payment that…

Q: Ashley received a loan of $1,300 at 4.25% compounded quarterly. She had to make payments at the end…

A: We need to use loan amortization formula to calculate quarterly payment. PMT =P*i1-1(1+i)n where…

Q: On January 2, 2021, an Australian Copper Exploration Company was investigating the feasibility of…

A: Net present value is the difference between the present value of cash inflows and present value of…

Q: A savvy investor paid $6,000 for a 20-year $10,000 mortgage bond that had a bond interest rate of 8%…

A: Current Price  $                                      6,000.00 Bond Price  $…

Q: the interest rate om 56,000 loan is 8.4% compounded semiannually. quarterly payments will years…

A: Given, PV = 56,000Interest= 8.4% Semiannually Compund frequency CY=2 Payment frequecy = PY = 4…

Q: Galbraith Co. is considering a four-year project that will require an initial investment of $9,000.…

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Q: One method of managing internal operations is to offer rewards or punishments to reinforce…

A: Reinforcement is a phrase used in behavioral analysis and operant conditioning, which is a type of…

Q: 1. Distinguish between payback and discounted payback period.

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: Which of the following factor is NOT related to increasing an MNC's cost of capital? A. Risk-free…

A: Cost of capital means the rate of return a company is getting its borrowings at. Cost of capital is…

Q: Monetary policy in Australia is implemented by the Reserve Bank, and currently is principally…

A: The role of Reserve Bank of Australia is  : i) Formulation of monetary policy, and  ii)…

Q: The yield to maturity of a $1,000 bond with a 7.4% coupon rate, semiannual coupons, and two years to…

A: Price of a bond = sum of present values of all future cash flows associated with the bond. The cash…

Q: When purchasing a $100,000 house, a borrower is comparing two loan alternatives. The first loan is…

A:

Q: A bank borrows $1 million for 6-months at an annual interest rate of 6.5 percent. It invests the…

A: Borrowed amount = $ 1millionDuration = 6 monthsRate = 6.5% (Annual) Investment in Swedish kronaSpot…

Q: Each day, you deposit $4.79 into a bank account whose annual rate is 1.6% with daily compounding.…

A: Daily deposit (P) = $4.79 Interest rate = 1.6% Daily interest rate (r) = 1.60%/365 =…

Q: 24. If you were to consider the cost of funds in a payback period calculation, you would have to…

A: The payback period is the number of years it would take to recoup a project's initial expenditure.…

Q: The AUD/$ spot exchange rate is 1.60 and the SF/$ is 1.25. The AUD/SF cross exchange rate is: 0.7813…

A: (Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: If the interest rate is zero, the future value interest factor equals.

A: Time value of money (TVM) is used to measure the value of money at different point of time in the…

Q: Assume the spot Swiss franc is $0.7085 and the six-month forward rate is $0.7120. What is the Value…

A: given that: spot rate=$0.7085 forward rate=$0.7120 then the spot rate =$14144.28 forward…

Q: b) What principal will have a maturity value of $40 000.00 at 5.25% p.a. in 4 years? Answer

A: Principal amount can be calculated as: = Amount / (1 + rate)^years

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A: As the name implies, financial markets are a type of marketplace where you may sell and purchase…

Q: êBöök he assets of Dallas & Associates consist entirely of current assets and net plant and…

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Q: Click here to watch the video. Jessica invests $250 each quarter in an ordinary annuity with a 5%…

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Q: A surgery center specializes in high-risk cardiovascular surgery. The center needs to forecast its…

A: The present value of profits for next three years= $ 19,817,076 Calculations are in below image.…

Q: Casey purchased a house for $350,000. She made a down payment of 10.00% of the value of the house…

A: Data given: Value of house = $350,000 Down payment = 10% of value of house. r= 6.82% compounded…

Q: Cross-Ocean Boats Ltd. is in the 30% tax bracket. It is interested in determining the minimum return…

A: Yield to maturity(YTM) is the rate of return that bond holders will get if the hold bond till…

Q: Increasing a country's risk-free rate could _______ the cost of equity to an MNC in that country;…

A: The theoretical return on a risk-free investment is known as the risk-free rate of return. Over a…

Q: Using the data in the following table, calculate the volatility​ (standard deviation) of a portfolio…

A: Given: Weight 75% 25% Year Stock A Stock B 2010 -10% 16% 2011 5% 20% 2012 2% 26% 2013…

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A: The rate at which cash flows are discounted is known as the discount rate. It can be the internal…

Q: What is the value of an investment of Php 3,500 after 2 years if it earns 1.5% compounded quarterly?

A: Using the Compound Interest Formula A=P1+rnnt where:  A = Accrued amount (principal + interest)P =…

Q: Secondary market trading of a company’s previously issued shares directly affects the company’s real…

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Q: Compute for EOQ for Company with Annual Usage of 32,000 units in 360 working days, Ordering cost of…

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

Q: Huai takes out a $3200 student loan at 6.7% to help him with 2 years of community college. After…

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A: LBO funds exit through  1) outright sale to another Private equity firm or another LBO 2) IPO

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Q: Suppose you purchase a 10-year bond with 6% annual coupons. You hold the bond for four years, and…

A: A bond is a debt issued by the company whereby it has to pay regular coupons to the investor and…

Q: Find the semi-annual payment at the end of every six months, the first payment is due at the end of…

A: Compound Interest: It is the interest on a loan or deposit  that is calculated based on both the…

Q: ________are used to measure the speed in which various accounts are converted into sales or cash.

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Q: Please explain what is direct and indirect financing? What is the role of banks in direct c.…

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Q: Suppose that each week, you deposit $43 into a savings account whose annual rate is 1.8% with weekly…

A: We need to use future value of annuity formula to calculate balance of account after 14 years. FV…

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Q: (16. A 28.5-acre parcel of land in Orange County sells for $4,100 per acre. What is the documen- 16.…

A: The documentary stamp tax rate =0.7003%   Deed amount = 28.5*4100=116850

Q: We have seen before that money deposited into an account with continuous interest follows the A = Pe…

A: Loan amount “P” = $270,000 Rate “r” = 5.3% Time “t” = 30 When a constant amount is withdrawn from an…

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.