A debt can be repaid by payments of $1000.00 today, and $3000.00 in two years. What single payment would settle the debt three years from now if money is worth 16% p.a. compounded semi-annually? PV₁ =$ IY= CY= FV₁ = $ FV = PV(1 + i)" up to 4 decimal places Single payment E= FV₁ + FV₂ = S PV₂ = $ п2 = FV₂ = $ up to 2 decimal places up to 2 decimal places

A debt can be repaid by payments of $1000.00 today, and $3000.00 in two years. What single payment would settle the debt three years from now if money is worth 16% p.a. compounded semi-annually? PV₁ =$ IY= CY= FV₁ = $ FV = PV(1 + i)" up to 4 decimal places Single payment E= FV₁ + FV₂ = S PV₂ = $ п2 = FV₂ = $ up to 2 decimal places up to 2 decimal places

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

See similar textbooks

Similar questions

What is the quarterly payment on a loan of $22,000 for 5 years at i= 8% per year, compounded semi-annually? Assume that interperiod cash flows earn compound interest (ABET, SO1) Select one: O a. 1220 O b. 1342 O c. 1281 O d. 1403 O e. 1464
A debt can be repaid by payments of $3125.00 today, $2770.00 in two and half years and $4600.00 in six years. What single payment would settle the debt four years from now if money is worth 10.48% p.a. compounded semiannually?
Suppose that you borrow$ 12000 at interest rate of 5% per year. If you must be repaid the loan in equal end of year payments over the next 4 years, how much must you repay at the end of each year? O a. $3672 Ob. $3384 Oc. $2672 O d. $2384
A loan is to be repaid by $1500 in one year and $2250 in four years. The borrower has asked to repay $1000 in 1.5 years and a final payment in three years. If money can earn 6% compounded quarterly, what is the size of the final payment? Select one: O a. 2735.18 O b. 2705.50 O C. 2725.50 O d. 2755.85 O e. 2715.50
A loan of P50,000 is to be amortized by paying quarterly in 1 year. If money is worth 10% compounded quarterly, how much is the monthly installment? a. P13,648.90 b. P11,589.57 c. P12.765.50 d. P13,290.89
What will be the compounded amount on a loan of P1.500 at 12% interest compounded quarterly for 1 year? of O P16.822.63 O P1.690 O Pl,688.26 O P16.860
A loan of $17,500.00 is repaid by making annual payments of $5,781.10 at the end of each year. If interest is 6.13% compounded annually. How many payments are required to amortize the loan? Round UP the answer to the next higher whole number (e.g. 5.12 must be entered as 6). Number of payments = whole number) PV=$ 2) (enter a 3) 4) Complete the amortization table below. Enter only POSITIVE VALUES IN THE AMORTIZATION TABLE (rounded to two decimal places). Total Payment number Payment amount Interest Paid Principal Repaid Balance 0) $17,500.00 1) FA tA I/Y= $ PMT=$ $ GA FA A SA FA GA P/Y=C/Y= GA FV=$ A GA GA EA $
A loan of £14,000 is repaid by annual payments of £1,400 each at the end of the year. How long does it take to repay the loan on the basis of an interest rate of 1% p.a.? 数字 years Enter an answer correct to 2 decimal places Suppose the payment at t = 10 is increased to repay the loan (a balloon payment). What is the value of the payment at t = 10? £ 数字 Enter an answer correct to 2 decimal places Alternatively, the loan may be repaid via a payment at t = 11 (a drop payment). What is the value of the payment at t = 11? £ 数字 Enter an answer correct to 2 decimal places
Give typing answer with explanation and conclusion a loan of 4415$ borrowed today is to be repaid in three equal installments due in one and a half years, four years, and five years, respectively. what is the size of the equal installments if money is worth 9.2% compounded monthly? The payments are each$?
An amount of $6,880 is deposited into an account earning 3% interest compounded quarterly. How much will be in the account in 11 years and 6 months? Round the answer to the nearest cent. P/Y = 4 C/Y = 4 IY = %3D PV = 6880 PMT = 0 FV = %3D Submit Question
A $23,970 loan is to be settled by making payments of $6,999 at the end of every six months. The interest is 7.58% compounded monthly. a) Find the number of payments in the term. N = b) Fill in the missing values of the amortization schedule below. Round off your answers to two decimal places. Enter a positive value for all answers. Payment Number 0 1 2 3 4 Payment Amount ($) PMT FA A A A Interest Portion ($) INT FA A $ Principal Portion ($) PRN $ A $ Loan Balance ($) BAL A A $23,970