A loan is to be repaid quarterly for 10 years that will start at the end of 4 years. If the interest rate is 3% converted quarterly, how much is the loan if the quarterly payment is 10,000? Round off your answer in two decimal places.

A loan is to be repaid quarterly for 10 years that will start at the end of 4 years. If the interest rate is 3% converted quarterly, how much is the loan if the quarterly payment is 10,000? Round off your answer in two 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

Related questions

Q: What is the amount of working capital at the end of January? A service enterprise's working capital…

A: Inventory: Inventory can be described as a good or material that a company holds for the purpose of…

Q: - What does a firm typically try to ccomplish by cross listing and selling it hares on a foreign…

A: Shares of a company are listed on a stock exchange like the NYSE or other similar stock exchange.…

Q: When coupon payment is expressed as a percentage of the bond’s par value and annualized by…

A: Coupons are the annual interest rates paid on a bond. It is usually expressed as a percentage of the…

Q: cost is $915 and property taxes are $2, 082 per year. Calculate their total monthly payment. REAL…

A: In mortgage loans there are monthly loan payment and also monthly insurance and property tax also…

Q: Project Y requires a $345,000 investment for new machinery with a six-year life and no salvage…

A: Accounting rate of return can be calculated as: = Net Income / Average Investment It does not take…

Q: Cambria Bank is holding $9 million in reserves, $12 million in government bonds and $10 million in…

A: Given:Reserves= $9 million Government bonds= $12 million Mortgage Loans= $10 million Deposits= $30…

Q: A company has $20 billion of sales and $1 billion of net income. Its total assets are $10 billion.…

A: Net income = $1 billion Sales = $20 billion Total assets = $10 billion Total invested capital =…

Q: Assume you have secured a loan of $10,000 from a bank which will be paid in one year. The bank has…

A: Interest payable = Opening Balance * Monthly interest rate

Q: ds, year-end rate

A: A merger occurs when two separate entities combine hands to create a new, united entity.The…

Q: Investing $19,000,000 in additional raw materials today, mostly in Uranium-235, should allow Teller…

A: Return on investment Return on investment is the net profit divided by total cost. It is calculated…

Q: The following financial information was provided by Anya Company: Net Income 8,255,000.00…

A: Given, Net income is 8,255,000 Tax rate is 35%

Q: Suppose you sold stock XYZ December RM8 call options for 40 sen. The price of XYZ stock on the last…

A: Solution:- Call option is a right to buy the asset if price of asset increases from the strike…

Q: Holding everything else equal, the increase in the volatility (variance) of the underlying stock…

A: Put gives option sell the stock and call option gives opportunity to purchase the stock but no…

Q: Use the data provided for Gotbucks Bank, Incorporated, to answer this question. Gotbucks Bank,…

A: Thanks for the question. Bartleby's Guideline: “Since you have posted a question with multiple…

Q: An engineer planning for retirement is considering purchasing a bond that has a face value of…

A: A bond is a debt instrument used to raise capital. It can be traded on the secondary market.

Q: A company has taken a steadily amortized loan of 3 250 000 € The loan term is 8 years with quarterly…

A: Interest on loan: It is the expense of borrowing money. It starts to accumulate, or include when…

Q: The project to convert the infrastructure into an office complex that will generate annual revenues…

A: Cash flow considers only the cash dealt items. Since depreciation is a non-cash item, so the impact…

Q: Therefore, the annual coupon payment is

A: Annual coupon payment = Face value * Annual coupon rate

Q: Allan Corporation would like to purchase 60% of Mark Corporation in an acquisition. If Allan pushes…

A: Investment decisions are one of the major decisions of financial management. This investment…

Q: BG Company has P8,000,000 in current assets, P3,500,000 of which are considered permanent current…

A: The minimum assets required to maintain the company's operations are known as permanent current…

Q: Given the data below, what is the simple linear regression model that can be used to predict ales in…

A: Linear regression is used to determine the relationship between the scalar response and one or more…

Q: Jack is a very successful manager. He has a management contract which grants him a lump sum payment…

A: Future value of a present value is the value of that amount after taking into account the time value…

Q: Saki Sushi Restaurant has 250,000 shares of stock outstanding, $400,000 in perpetual after-tax EBIT,…

A: Number of shares = 250,000 Initial project cost = $360,000 Annual perpetual after tax EBIT = $60,000…

Q: Find the amount of time to the nearest day it would take a deposit of $2600 to grow to $1 million at…

A: When a person invest a sum of money, interest is earned on the investment. Interest can be defined…

Q: If the annual interest rate printed on the face of a bond is 10 percent, the face value of the bond…

A: Here, Annual Interest rate = 10% Face value of the bond =$1,000 Present value of the bond = $1,250…

Q: Assume you buy a March RM1625 FBM-KLCI call option for RM25 and hold until expiry. What will be…

A: In the given case, Call option is purchased at a premium of $25 Long call is exercised only if Stock…

Q: Housing prices in a particula county have incheased by 255% over the prce of houses five yrs ago (a)…

A: Solution: Average cost of house today will be the cost in today's terms after adjusting percentage…

Q: It is the amount of money that will receive at the bond's maturity date. coupon discount rate par…

A: A principal + interest loan divides the principal (original amount borrowed) into equal monthly…

Q: What is the formula for calculating present value of a project? If you are given annual profit in…

A: The net present value (NPV) is a capital budgeting tool that is used to determine the profitability…

Q: The coupon rate is calculated on the bond's face value (or par value), not on the issue price or…

A: Solution:- Coupon amount is the fixed amount paid by the company to its bondholder at every equal…

Q: 7. Mark Hohman has decided that it is time to buy a new car. He has found his dream car for $25,502…

A: Mortgage amortization refers to a schedule which is prepared to shows the periodic loan payments,…

Q: (b) Assume you can borrow $100,000.00, using covered interest arbitrage for a 30- day investment,…

A: Given, (b) Here, we have to find out the arbitrage value after 30 days. The working is done…

Q: The firm's average accounts receivable balance is P2.5 million, and they are financed by a bank loan…

A: In finance the lockbox system is a service that many banks provide. It is related to receipt of…

Q: If the chance that a risk will occur cannot be reasonably predicted or the possible financial loss…

A: An uninsurable risk is one that presents an unknown or unacceptable risk of loss for an insurance…

Q: A. What is the monthly payment? Alejandra has a payment of $ a month. B. How much interest will be…

A: Mortgage amortization refers to a schedule which is prepared to shows the periodic loan payments,…

Q: Find the payment necessary to amortize a 6% loan of $100,000 compounded annually, with 11 annual…

A: Loan amount = $100,000 Interest rate = 0.06 (i.e. 6%) Loan period = 11 years Annual payment = ?

Q: Option Trading Strategies - Two Assets $40 Fist Asset Proft Second Asset Profit Total Profit - ie…

A: In case of a Long put, Payoff is Maximum of (exercise price - Stock price,0), I,e option is…

Q: alculate the debt ratio. (Round your answers to 2 decimal places.)…

A: In finance we often use financial ratios to gauge the financial health of a company. Ratios like…

Q: The expected market rate of return is 12%, and the risk free rate is 3%. Stock A has a beta of 1.25.…

A: Risk free rate = 0.03 Market rate of return = 0.12 Beta = 1.25 Expected return as per CAPM = ?…

Q: ars, what will their payment and the total cost of their loan be?

A: Loan Amount: It refers to the amount borrowed by the borrower from the bank. The borrower pays the…

Q: MG Golf has decided to sell a new line of golf clubs. The clubs will sell for $815 per set, with a…

A: Here, Fixed Cost is 9.75 million Cost of Plant and equipment is $39.2 million Net Working Capital…

Q: Consider TOBITC's Balance Sheet: $3,500 Reserves $30,000 Deposits $2,500 Bonds $40,000 Loans to…

A: Solution:- Bank's capital is the difference in the value of bank's total assets and total…

Q: 6. A company is considering two proposals. The company must implement one of them to resolve an…

A: Solution:- We know, Internal Rate of Return (IRR) is the rate of return the project (or proposal) is…

Q: The yield-to-maturity is now at 7%. What has happened to the price of the bond? If investors believe…

A: Yield to maturity is the total benefit investor receives for buying & holding the bond. It is a…

Q: A put option on Snapple Beverage has an exercise price of $30. The current stock price of Snapple…

A: A put option can be in the money, out of the money and at the money. It will depend on the amount of…

Q: The United States has a comparative advantage in -skilled lator. This explains why the U.S. is a net…

A: Skilled labor refers to workers who are highly trained, educated, or experienced and can do more…

Q: Suppose that a futures price is currently £30. The risk-free interest rate is 5% per annum…

A: Here, To Find: Bounds for the price =?

Q: for 25 years, what will their payment and the total cost of their loan be?

A: Loan Payment: These are payments made by the borrower for amortizing the loan amount. Such payments…

Q: Mr Dela Cruz deposited ₱18,980.00 from the project you’ve earned in a time deposit account with your…

A: Future Value is the product of present value with interest rate and its time period Future Value =…

Q: How much would Sally be willing to pay today for an annuity expected to pay $4,000 per year for 5…

A: As per the information provided: Annuity expected - $4,000 Period - 5 years Return - 10%

Question

A loan is to be repaid quarterly for 10 years that will start at the end of 4 years. If the interest rate is 3%
converted quarterly, how much is the loan if the quarterly payment is 10,0007 Round off your answer in
two decimal places.
Php

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Calculation of Loan Amount

VIEW

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Calculating interest and APR of installment loan. Assuming that interest is the only finance charge, how much interest would be paid on a 5,000 installment loan to be repaid in 36 monthly installments of 166.10? What is the APR on this loan?
Calculating single-payment loan amount due at maturity. Stanley Price plans to borrow 8,000 for five years. The loan will be repaid with a single payment after five years, and the interest on the loan will be computed using the simple interest method at an annual rate of 6 percent. How much will Stanley have to pay in five years? How much will he have to pay at maturity if hes required to make annual interest payments at the end of each year?
A loan is to be repaid quarterly for 9 years that will start at the end of 4 years. If the interest rate is 4% converted quarterly, how much is the loan if the quarterly payment is 10,000? Round off your answer in two decimal places. Php _______
A loan is to be repaid quarterly for 14 years that will start at the end of 4 years. If the interest rate is 5% converted quarterly, how much is the loan if the quarterly payment is 10,000? Round off your answer in two decimal places.
Use the table to find the monthly payments on the given loan. Amount Rate Time $63,000 12% 3 years table of monthly payments on a $1,000 loan. The monthly payments for this loan are? (Type an integer or a decimal.)
Step 1:Suppose that your Stafford loans plus accumulated interest total $31,811 at the time that you start repayment and the interest rate is 6.8% APR.If you elect the standard repayment plan of a fixed amount each month for 10 years, what is your monthly payment?(Fill in the blank below and round your answer to 2 decimal places.)Your monthly payment would be $______. STEP 2: How much will you pay in interest?(Fill in the blank below and round your answer to the nearest whole number.)You would pay a total of $______ in interest. STEP 3: However, because your accumulated outstanding federal loans total more than $30,000, you can elect to repay over 25 years instead.Fill in the blanks (Give your answers to two decimal places):If you do that:Your monthly payment would be $______.You will pay $______ in interest.Answer 1:Answer 2:
Fill in an amortaization table for a loan of $9,300 to be paid back over 4 years, at an annual interest rate of 1.2% compounded semiannually. At each step, round your answers to the nearest cent and use these values to calculate the next. Payment Number Payment Amount Payment Amount to Interest Payment Amount to Debe Outstanding Pri 9300 2 3. 4 5. 6. 7. 8.
Assume you take out a $2000 loan for 30 months at 9% APR. What is the monthly payment? (Round your answer to 2 decimal places.) N: months I %: P.V: $ PMT: $ F.V: 0 P/Y: 12 C/Y: 12
If you borrow $7,500 at $550 interest for one year, what is your effective interest rate for the following payment plans? (Input your answers as a percent rounded to 2 decimal places.) a. Annual payment b. Semiannual payments c. Quarterly payments d. Monthly payments Effective Rate of Interest % % %
Establish loan amortization schedules for 3- year loan of 20.000 (initial loan) with equal payments at the end of each year. The interest rate is 5 percent per year? show how you compute each of the items
Prescott Bank offers you a five-year loan for $69,000 at an annual interest rate of 8.5 percent. What will your annual loan payment be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Annual loan payment < Prev 14 of 23 Next GH BN M