5. A loan L is repaid with twenty annual payments. The total amount of each payment is $1,200. The first payment occurring when the loan is made. Half the loan is an amortized loan with at annual effective interest rate of 8%. The other half of the loan is to be repaid by the sinking fund method with the lender receiving an annual effective interest rate of 7.5%, and the sinking fund account earning 3% annual effective interest. Find the amount L of the loan.
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- If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?Find the payment necessary to amortize a 6% loan of $100,000 compounded annually, with 11 annual payments. The payment size is SOn a loan of $1400, interest at 9% effective must be paid at the end of each year. The borrower also deposits $X at the beginning of each year into a sinking fund earning 4.7% effective. At the end of 10 years the sinking fund is exactly sufficient to pay off the loan. Calculate X. A. $ 1617.11 B. $ 1078.07 C. $ 1347.59 D. $ 1724.92 E. $ 1232.09
- 4. 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. i NOTE: PLEASE SHOW HOW YOU COMPUTE EACH OF THE ITEMS.(1) A 10-year loan of 30,000 may be repaid under the following two methods: (a) amortization method with equal annual payments at an annual effective interest rate of 7.5%. (b) sinking fund method in which the lender receives an annual effective interest rate of 9% and the sinking fund earns an annual effective interest rate of j. Both methods require a payment of X to be made at the end of each year for 10-years. Calculate j. (2) A loan of X is repaid with level annual payments at the end of each year for 15 years. You are given: (a) The interest paid in the 1st year is 1000; and (b) the principal repaid in the 10th year is 563. Calculate X.Prepare an amortization schedule for a three-year loan of $96,000. The interest rate is 9 percent per year, and the loan calls for equal annual payments. How much total interest is paid over the life of the loan? Year 1: Beginning Balance, Total Payment, Interest Payment, Principal Payment, Ending balance Year 2: Beginning Balance, Total Payment, Interest Payment, Principal Payment, Ending balance Year 3: Beginning Balance, Total Payment, Interest Payment, Principal Payment, Ending balance Total Interest for all 3 Years.
- Consider a loan of $98,000 at 7% compounded annually, with 12 annual payments. Find the following. (a) the payment necessary to amortize the loan (b) the total payments and the total amount of interest paid based on the calculated annual payments (c) the total payments and total amount of interest paid based upon an amortization table. ... (a) The annual payment needed to amortize this loan is $ (Round to the nearest cent as needed.) (b) The total amount of the payments is $ (Round to the nearest cent as needed.) The total amount of interest paid is $ (Round to the nearest cent as needed.) (c) The total payment for this loan from the amortization table is $ (Round to the nearest cent as needed.) The total interest from the amortization table is $ (Round to the nearest cent as needed.)4. Consider the following financing information for a loan of $103,000: Item Value Loan amount $103,000 2 years Loan length Contractual interest rate 8% Origination fee Payment type 4.3% Quarterly payments, equally amortized Find the actuarial interest te, the annual percentage interest rate, and the effective interest rate.The payment necessary to amortize a 5.2% loan of $89,000 compounded annually, with 4 annual payments is $25,215.76. The total of the payments is $100,863.04 with a total interest payment of $11,863.04. The borrower made larger payments of $26,000.00. Calculate (a) the time needed to pay off the loan, (b) the total amount of the payments, and (c) the amount of interest saved. a. The time needed to pay off the loan with payments of $26,000.00 is (Round up to the nearest year.) years.
- A loan of $2,000 is paid by the following series of payments, beginning one year after the loan ismade:100, 105, 110, 115, ..., 145, 150, 145, 140, ..., 105, 100, 100, 100, ...,The payments of $100 continue for as long as necessary, and then a smaller payment is made one year afterthe last payment of $100. Determine the total number of payments needed to repay this loan, and the sizeof the last payment, if the effective annual rate is 4%.A loan of $8000 made at 6% compounded monthly is amortized over five years by making equal monthly payments. What is the size of the monthly payment? What is the total amount paid to amortize the loan? What is the cost of financing?