loan is to be amortized by equal payments of P5,000 at the end of each six months for 10 years. If the interest is based on 7% compounded semiannually, find: a. the present value of the loan b. The outstanding principal just after the 8 th payment; and c. The remaining liability after 8 years.

Q: a fully amortized loan is made for $1,00,000 at 6% for 30 years calculate total amount of interest…

A: The amortization schedule gives information to the borrower and lender about the payment due and the…

Q: An obligation will be amortized by quarterly payments of P670 for 10 years, If interest is at 6%…

A: Quarterly payment (P) = P 670 Period = 10 Years Total number of quarterly payments = 10*4 = 40…

Q: A loan in the amount of $280,000, is contracted over a period of 25 years to finance the purchase of…

A: Here,

Q: the interest rate on 6400 loan is 10% componded semi annually. if the loan is to be repaid by…

A: A loan amortization table is the schedule of repayment of a loan it includes the bifurcation of…

Q: An obligation will be amortized by quarterly payments of P5,000 for 10 years. If interest is 6%…

A: The remaining liability can be computed as the present value of the remaining payments that are due…

Q: Find the semiannual payments to repay a debt of P100,000 in 6 equal payments with interest at 10%…

A: A loan is a debt amount borrowed by one person from another person at a predetermined financial…

Q: A debt of 15,000 with interest at the rate of 15% compounded semiannually is to be amortized by 3…

A: Debt amount now (PV)=15000Interest rate 15%compoundinf semi annuallySo semi annually…

Q: A loan is to be amortized by equal payments of 500 each at the end of every six months for 10 years.…

A: Semiannual payment (S) = 500 n = 10 years = 20 payments r = 7% per annum = 3.5% semiannually Let L =…

Q: A debt of 15,000 with interest at the rate of 15% compounded semiannually is to be amortized by 3…

A: An amortisation schedule is prepared to present the outstanding debt balance, interest expense and…

Q: A loan of P47,300 is to be amortized by equal payments each month for 6 months . If interest is 12%…

A: Present Value of Ordinary Annuity refers to the concept which gives out the discounted or today's…

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 payment of $3,000 was made into an account at the end of every 3 months for 12 years. a. If the…

A: given, A= $3000 n = 6 years r=4% m= 4 ( quarterly compounding)

Q: A loan of P12, 500 is to be repaid with equal quarterly payments for one year with an interest of 6%…

A: Amortization table is a schedule which shows periodic lease or loan payments. The periodic payment…

Q: Prepare an amortization schedule for a three year loan of P90,000. The interest rate is 10% per…

A: Amortization means paying the debt over the period through regular payments. Amortization schedule…

Q: The loan of 200,000 PLN is repaid in equal annual instalments for 20 years. The total yearly payment…

A: The interest rate on loan as well as the second installment principal and interest proportion can be…

Q: A loan $30.000 is to be amortized by equal payments at the end of each year for five years. The…

A: Interest payment for the 3rd year = $1080 ($30000-$6000-$6000)*6% = $1080

Q: A debt of $5000 with interest 5% compounded 6-monthly is amortized by equal annual semi payments…

A: Present value annuity @ 2.5% for 6 periods = 5.50813

Q: A sum of $80,000 is to be repaid over a 10-year period through equal installments made at the end of…

A: Interest, in finance and economics, is payment from a borrower or deposit-taking financial…

Q: A payment of $4,500 was made into an account at the end of every 3 months for 12 years. a. If the…

A: a) P = 4,500 + 4,500 = 9,000 r= 6% t= 5 n= 12 Future value = P1+rnnt= 9,0001+0.061260=…

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: 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: A loan of $16,000 with interest at 10% compounded semi-annually is repaid in 9 years by equal…

A: A loan is a financial arrangement between two parties in which one party borrows funds at a…

Q: A loan of P100,000 must be repaid by a uniform amount every year for 10 years at 10% interest per…

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

Q: Prepare an amortization schedule for a three year loan of P90,000. The interest rate is 10% per…

A: A loan refers to borrowed money taken by a person from a lender in case of a shortage of money. It…

Q: a. Set up an amortization schedule for a $19,000 loan to be repaid in equal installments atthe end…

A: The above question deals with the amortization of loan by way of annuity payments and observing the…

Q: A debt of P10,000 with 10% interest compounded semi-annually is to be amortized by semi-annual…

A: The amount can be calculated with the help of present value of annuity function.

Q: A loan of P12, 500 is to be repaid with equal quarterly payments for one year with an interest of 6%…

A: Note: It is a case where the number of questions asked is more than one and no specified question is…

Q: A debt of P10,000 with interest at the rate of 20% compounded semi-annually is to be amortized by 5…

A: Amortization schedule can be defined as the schedule which shows the accumulated interest, remaining…

Q: A loan of P8,000 will be amortized by payments at the end of each quarter for 8 years and 9 months.…

A: 1. Calculate the amount of periodic payments by using the EXCEL PMT formula. Note that there are 35…

Q: A loan, amortized over 7 years, is repaid by making payments of $1,600 at the end of every month. If…

A: Present value is the current value of the amount of money or cash flows that are expected in the…

Q: A 10-year loan is available from a relative at 10% simple interest. The amount borrowed will be…

A: First need to use simple interest formula to calculate interest simple interest payable in 10 years.…

Q: A client is given a loan of principal amount of R50,000 which accrues interest of 10% per annum,…

A: A loan is a financial arrangement in which the borrower get a lump sum amount and paid it in future…

Q: An obligation will be amortized by quarterly payments of P670 for 10 years, If interest is at 6%…

A: Quarterly payment (P) = P 670 Period = 10 Years Number of monthly payments (n) = 10*12 = 120…

Q: An obligation will be amortized by quarterly payments of P670 for 10 years. If interest is at 6%…

A: Let the obligation = L Quarterly payment = Q = P 670 n = 10 years = 40 quarters r = 6% per annum =…

Q: A P15,000 loan at 12% compounded quarterly is to be amortized every 3 months for 12 years. Find the…

A: Here, To Find: Quarterly payment =? Construction of amortization schedule =?

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 to be amortized by equal payments of P500.00 each at the end of every six months for ten…

A: solution given Interest rate 7% compounded semiannually Equal payments 500 Number of…

Q: Olfert Inc. is repaying a loan of $57500 by making payments of $4250 at the end of every six months…

A: Loan repayments in equal instalments at equal intervals of time is called an annuity. Initial…

Q: A LOAN OF P100,000 MUST BE REPAID BY A UNIFORM AMOUNT EVERY YEAR FOR 10 YEARS AT 10% INTEREST PER…

A: Solution: Amount of periodic payment = P100,000 / Cumulative PV factor at 10% for 10 periods…

Q: A $14,000 loan is to be amortized for 10 years with quarterly payments of $511.78. If the interest…

A: An amortized loan is a type of loan with scheduled, periodic payments that are applied to both the…

Q: A loan of $92,800.00 is repaid by equal payments made at the end of every three months for 3 years.…

A: Installment is the amount paid to the loan giver in order to repay the loan in a set period of time.…

Q: Find the semi-annual payment of a P15,000 debt to be amorlized by 5 equal payments at the end of…

A: Solution:- Given, Loan amount = PV = P15,000 Number of payments = n = 5  Interest rate = i = 15%/2…

Q: Messi borrowed GH¢ 150,000 from SOS Bank at 14% annual interest rate to be paid over three years.…

A: given, principal (P)=GH¢ 150,000  r=14% n=3

Q: A loan of $14,000 with interest at 12% compounded quarterly is repaid in 8 years by equal payments…

A: Loan Amount = $14,000 Interest compounded quarterly = 12% Calculating interest for semi-annual…

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…

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.