PLEASE, THE ONLY CORRECT ANSWERS ARE THE STIPULATED ONESPLEASE, WRITE THE SOLUTIONS ON PAPER, EXPLAINING THE ENTIRE PROCESS, THE ONLY ANDCORRECT SOLUTIONS ARE FOR (i) I = £20.55 AND (ii) d = 5.81% pa AND (iii) d^12 = 5.97% paA short-term loan of £5,000 is repayable in 25 days at a simple rate of interest of 6% p.a.Assuming that 1 year is equivalent to exactly 365 days, calculate the following:(i) The amount of interest, to the nearest £0.01, accrued on the loan in 25 days;(ii)The annual effective rate of discount equivalent to this transaction, to the nearest 0.01%;(iii)The annual nominal rate of discount convertible monthly equivalent to this transaction, tothe nearest 0.01%.

(iii) The Annual Nominal Rate of Discount Convertible Monthly Equivalent to This Transaction This…

Answered: PLEASE, THE ONLY CORRECT ANSWERS ARE…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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You have been approached to structure a payment plan for a bank client who has been granted a loan of R100 000 at 10% per annum for 60 months. The client is faced with some difficulties so cannot afford the loan payment initially for the first 2 years. However, from the beginning of year 3 the client would be able to contribute an extra amount every year for the rest of the term to ensure that they payoff the loan in the stipulated term. Draw up an amortization table and answer the questions below. All answers to the nearest cents. NB: Extra payment not Growth. 1. What would have been the normal monthly payment for a loan like this? R Blank 1. Fill in the blank, read surrounding text. 2. If the client can only afford R1500 for the first 2 years, what should be the extra payment each month when the client starts making the normal payments for the loan from the beginning of year 3? R Blank 2. Fill in the blank, read surrounding text. 3. How much total interest would be paid over…
Construct an amortization schedule (monthly) with the followings: House Price: 700,000 Down Payment: 20% of House Price Loan Period: 30 years Interest rate: 5.78% To get full credit, you must use Excel functions with relative cells to change the amortization schedule with variables such as price, interest, and load period. Please submit your Excel spreadsheet. (No other files are accepted)
correct answers are i) 20.55, ii) d=5.81% and iii) d^12= 5.97% No tables, only formulas, please A short-term loan of £5,000 is repayable in 25 days at a simple rate of interest of 6% p.a. Assuming that 1 year is equivalent to exactly 365 days, calculate the following: (i) The amount of interest, to the nearest £0.01, accrued on the loan in 25 days; (ii) The annual effective rate of discount equivalent to this transaction, to the nearest 0.01%; (iii) The annual nominal rate of discount convertible monthly equivalent to this transaction, to the nearest 0.01%.
Give typing answer with explanation and conclusion a €6000 loan is to be repaid at the end of 4.5 years by the sinking fund method. Interest is charged at 10% compounded semiannually. The debtor establishes a sinking fund that earns 12% interest compounded semi annually. What is the total cost to debtor at the end of every 6 months
A fully amortizing CAM loan is made for $132,000 at 6 percent interest for 20 years. Required: a. What will be the payments and balances for the first six months? b. What would payments be for a CPM loan? c. If both loans were repaid at the end of year 5, would the lender earn a higher rate of interest on either loan? Complete this question by entering your answers in the tabs below. Required A Required B Required C What will be the payments and balances for the first six months? (Round your intermediate calculations and final answers to the 2 decimal places.) Month 1 Month 2 Month 3 Total Payment End Balance
Use an amortization table to solve the problem. Round to the nearest cent. A 7000 debt is to be amortized in 15 equal payments of 504.87 at 1% interest per month on the unpaid balance. What is the unpaid balance after the second payment? Show your table belove include columns for each of the following Loan Balance Payment Interest amount amount principle decrease new balance
You have taken out a $7.500,000 loan with a 4% interest rate, 30 year amortization and ten year term. What is the loan balance after the final loan payment? a. 50 b. $7.390,303 c Cannot determine with information provided d. $5,908,797
The following loan was paid in full before its due date a) Find the value of h using an appropriate formula b) Use the actuarial method to find the amount of unearned interest c) Find the payoff amount Regular Monthly Payment # of Payments Remaining after Payoff APR 7.2% $247 8 What is the finance charge per $100 financed? h=$ (Round to the nearest cent)
Develop an amortization schedule for the loan described. (Round your answers to the nearest cent.) $80,000 for 3 years at 9% compounded annually Period Payment Interest Balance Reduction Unpaid Balance $80,000 %24 2 24 %$4 $0.00 Need Help? Read it 3.
The weekly payment on a 4-year loan at 6.8% compounded weekly is $321.09. Calculate the amount of the loan. Identify the appropriate formula needed to calculate the amount of the loan. Select the correct choice below and fill in the answer boxes to complete your choice. (Type integers or decimals. Round to two decimal places as needed.) A. F= OB. P= O C. P= (1+i)^ - 1 F (1 + i)^ - • R, with F = $, n=[ and i=% with P = $ n= 1-(1+i)n i •R, with n= and i= % i= %, and R=$
a)loan of £16,000 is repaid by annual payments of £1,500 each at the end of the year. How long does it take to repay the loan on the basis of an interest rate of 4% p.a.? b)Suppose the payment at t=14 is increased to repay the loan (a balloon payment). What is the value of the payment at t=14? Enter an answer correct to 2 decimal places c)Alternatively, the loan may be repaid via a payment at t=15�=15 (a drop payment). What is the value of the payment at t=15? Enter an answer correct to 2 decimal places
Develop an amortization schedule for the loan described. (Round your answers to the nearest cent.) $180,000 for 3 years at 10% compounded annually Period Balance Reduction Unpaid Balance Payment Interest $180,000 2$ %24 2 %24 %24 $0.00 Need Help? Read It Talk to a Tutor Submit Answer

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