The Bull bank has a $100,000 30 year loan that was made 6 months ago to a homeowner who is making monthly payments to yield an interest rate of 7% compounded monthly. It would like to sell the loan to increase its overall liquidity. a. What is the current balance on the loan? b. What would be the value of this loan to a potential buyer if it was guaranteed to remain outstanding for the entire holding period, assuming the buyer’s RRR was 6% compounded monthly?

Q: 1. Johnson Company just acquire a building for $200,000 through financing from Bank of America at a…

A: Computation of the monthly Payments to pay off the loan is shown below: Hence, the monthly payments…

Q: A house is being purchased for $138,000.00.$138,000.00. The 3030-year mortgage has a 10%10% down…

A: The loan which is taken for the purchase of a house or property is known as mortgage. The amount of…

Q: New Venture Corporation has taken out a $ 5 million , 30-years, 10 percent mortgage on its new…

A: Monthly Payments, Hence Time Period = 30 years*12 = 360 months Loan = 5,000,000 Interest Rate =…

Q: 2.A person got a loan of 200.000 € from Bank A at 12 % annual interest rate. The bond will be repaid…

A: Amortization table: It is the schedule showing repayment of the loan amount that includes principal…

Q: A man borrowed an amount of P150,600 to bank that offers an interest rate of 5.36% compounded…

A: Given, Loan borrowed is P150,600 Interest rate is 5.36% compounded annually

Q: he British Company is purchasing a building and has a Rs. 190000 mortgage loan for 7 years. The loan…

A: Present value of annuity formulae, Present value of annuity =P * {1-[1/(1+r)^n]/r} Where, r = rate…

Q: You borrowed $550,000 from a bank at an interest rate of 50% compounded quarterly to purchase a new…

A: Rate of interest monthly = 50% / 12 = 4.1666% Periods = 12 * 2 = 24 months Monthly Installment =…

Q: 1. Mary Rose borrowed money from a bank amounted 12,000 with an interest rate of 11.5%, the monthly…

A:

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: semiannual payments over the next 9 years.

A: Amortization is an accounting method that lowers the book value of the loan or intangible asset…

Q: financial institution is offering a six-year term deposit that will pay 7% per annum compounded…

A: 1) Value at end of 5 years  Solved using Financial Calculator  PV = -125,000 I/Y = 7/4 = 1.75 N = 5…

Q: 1.-What is the size of 60 monthly payments and 5 annuities that result from the purchase of land…

A: As per the honor code, we’ll answer only one question at a time, we have answered the first question…

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: A house is sold with an assumable $156,000 below-market loan at 10% for a term of 15 years by a…

A: Computation:

Q: Six years ago, you borrowed $200,000 for a ten-year period from BOB Bank at a stated interest rate…

A: The PMT function or concept can be used to determine the periodic payments required to accumulate a…

Q: A firm has borrowed $5,000,000 for 5 years at 10% per year compound interest. The firm will make no…

A: This is then of future value. Future value is the value of current cash at the future date…

Q: 7. A company borrowed $100,000 from a bank, which charges them an interest rate of 5% per year.…

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

Q: Suppose an engineer purchases a home and secures a loan of ₱2.5M from a commercial bank for 20 years…

A: Introduction Loan may be defined as that type of debt which is incurred by an individual or a…

Q: 1. A man deposit 50, 000 in a bank account at 6% compounded monthly for 5 years. If the inflation…

A:

Q: Mountain Grains Cooperative wants to invest $42,000 in a​ short-term deposit. The bank offers 1.4​%…

A: Future value can be calculated by using present value multiplied by 1 plus interest rate.

Q: 6. A consumer loan worth 83,000 pesos is to be repaid in 18 months at 8% convertible monthly. How…

A: Here, Details of Ques-6: Mortgage Amount (P) is  83,000 pesos Interest Rate (r) is 8% Compounding…

Q: Find the monthly amortization of the loan.​

A: Monthly Amortization: It refers to the monthly payments made to the lender by the borrower for…

Q: 7. If you want to collect ¢ 5,000,000 in 4 years and for this you make deposits every end of the…

A: N = 4*12 FV = 5,000,000 rate = 18%/12 PV = 0 use PMT function in Excel value of deposit before…

Q: Hamilton wants to accumulate $170.000 at the end of 4 years. It starts quarterly payments in a bank…

A: in this you have to find out future value FACTOR and find quarterly payment.

Q: y borrowed $7,900,000 from a bank.The company repaid the loan after 3 years with a single payment of…

A: Borrowed amount “P” = $7,900,000 Number of years “n” = 3 Future Value of repayment “Fv” =…

Q: Suppose a company borrowed $1 million at a rate of 9% simple interest, with interestpaid at the end…

A: The question is based on the concept of calculation interest on the principle. Formula as,

Q: 2. Kingston Development Corp. purchased a piece of property for $2.79 million. The firm paid a down…

A: Solution:- When a loan is taken, it can either be repaid as a lump sum payment or in installments.…

Q: The bank issued a $200,000 30-year mortgage (monthly payments) with an annual interest rate of 9.4%,…

A: A mortgage is the type of loan taken by the individual or the corporate to purchase an immovable…

Q: Suppose that the liabilities of "Bank X" are all demand deposits and 3-month time deposits.…

A: Assets and Liabilities: The liabilities and equity of a business illustrate the sources of funds…

Q: (Hard) You are negotiating to make a 7-year loan of $25,000 to Breck Inc. To repay you, Breck will…

A: For solving this we have to calculate present value of cash and than determine the loan remaining…

Q: 1. The Lexington Property Development Company has a RM10,000 note receivable from a customer due in…

A: Present value is the value of an investment in today’s time. It helps to make decisions better.

Q: A bank is willing to lend money at 6% interest, compounded annually. How much would the bank be…

A: Given interest rate = 6% Interest is compounded annually. Payment to be received after 4 years =…

Q: 9. A man borrows Php10,000 from a loan firm. The rate of simple interest is 15%, but the interest is…

A: Par value of borrowing = Php 10,000 Interest rate = 15% Net Borrowing = Par value*(1-Interest rate)…

Q: 1. A loan of Php 300 000.00 is to be repaid in full after 2 years. If the interest rate is 9% per…

A: Part 1: Loan amount = Php 300,000 Time period = 2 years Interest rate = 9%

Q: Johnson Company just acquire a building for $200,000 through financing from Bank of America at a 5%…

A: Given data; Loan amount = $200,000 annual interest rate = 5% monthly interest rate = 5%/12 =…

Q: A man borrowed an amount of P150,600 to bank that offers an interest rate of 5.36% compounded…

A: Loan is a borrowed amount of money for a fixed time period, which is expected to be repaid with…

Q: Your company is planning to borrow $1,000,000 on a 5-year, 15%, annual payment, fully amortized term…

A: Company borrows amount for the purpose of carrying the necessary business activities. It would be…

Q: Two years ago, Luckett Land Developers Inc. borrowed $350,000 at a nominal interest rate of 4%…

A: If the borrower is not able to repay the loan amount then the borrower has the option to get the…

Q: You are considering investing $8,500 in a bank term deposit for 5 years. The term deposit will pay…

A: Whenever we make investment with bank or any financial institution, then they provide us interest…

Q: (Hard) You are negotiating to make a 7-year loan of $25,000 to Breck Inc. To repay you, Breck will…

A: For solving this we have to calculate present value of payment today and than find out remaining…

Q: The price of a condominium is $88,000. The bank requires a 5% down payment and one point at the time…

A: Price of Condominium is $88,000 Down payment is 5% Time period is 30 years or 30×12 = 360 months…

Q: A bank is negotiating a loan. The loan can either be paid off as a lump sum of $140,000 at the end…

A: Using excel PMT function