Consider a loan of $92,000 at 4% compounded annually, with 12 annual payments. Find the following....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Consider a loan of $92,000 at 4% 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.) For the following amount at the given interest rate compounded continuously, find (a) the future value after 6 years, (b) the effective rate, and (c) the time to reach $16,000. $5300 at 3.5% ... a. The future value after 6 years is approximately $ (Do not round until the final answer. Then round to the nearest cent as needed.) b. The effective rate is %. (Do not round until the final answer. Then round to two decimal places as needed.) c. The time to reach $16,000 from $5300 at 3.5% compounded continuously is years. (Do not round until the final answer. Then round to two decimal places as needed.) Consider a loan of $92,000 at 4% 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.) For the following amount at the given interest rate compounded continuously, find (a) the future value after 6 years, (b) the effective rate, and (c) the time to reach $16,000. $5300 at 3.5% ... a. The future value after 6 years is approximately $ (Do not round until the final answer. Then round to the nearest cent as needed.) b. The effective rate is %. (Do not round until the final answer. Then round to two decimal places as needed.) c. The time to reach $16,000 from $5300 at 3.5% compounded continuously is years. (Do not round until the final answer. Then round to two decimal places as needed.)
Expert Answer:
Answer rating: 100% (QA)
Requirement A Amount Borrowed 92000 Interest Rate 400 Nu... View the full answer
Related Book For
Posted Date:
Students also viewed these banking questions
-
Find the monthly house payment necessary to amortize the loan. The calculate the total payment and the total amount of interest paid. $199,000 at 7,01% for 25 years
-
Consider a loan of $150,000 and the information that follows: Percentage drawn: 90%. The probability of default is 5%. The estimated loss given default is 60%, with a standard deviation of 40%....
-
Find the future value at a rate r, compounded continuously for T years, of a continuous income stream with rate of flow f(t) = kect, where c and k are constants, c r.
-
Make a presentation about marketing: Your Companys marketing department promotes the products and interacts with the customers, sales force, and supply chain. They are also in charge of forecasting...
-
Multiple Choices 1. Which of the following businesses is the least likely to be operated as a partnership? a. Accounting firms b. Doctors offices c. Lawyers offices d. Steel foundry 2. Which of the...
-
Consider uniform water flow in a wide channel made of unfinished concrete laid on a slope of 0.0022. Now water flows over a 15-cm-high bump. If the flow over the bump is exactly critical (Fr = 1),...
-
The Haaland formula for the friction factor is \[ f=\frac{0.3086}{\left\{\log \left[6.9 / \operatorname{Re}+(\varepsilon / 3.7 D)^{1.11} ight] ight\}^{2}} \] Compare this equation for \(f\) for...
-
Use the letter beside the appropriate cash flow statement classification to indicate the section of the cash flow statement in which each of the following transactions of an Internal Service Fund...
-
Identify global industry value chain in the fashion retail industry. In what aspect, Zara is different from its competitors in value chain? Zara is famous for being fast. It takes Zara 6 weeks from...
-
Congratulations! You've just been hired by a company as their new Quality Manager. They are a large manufacturer of parts for the aerospace industry. The boss sits you down on the first day and...
-
The Cannibis Collective grows high-grade marijuana. It signed an agreement with the Smokin' Hot smoke shop to deliver 100 lbs of marijuana for $500,000 on November 1, 2022. On September 1, 2022,...
-
a. Consider the points \(\mathrm{a}\) and \(\mathrm{b}\) in Figure Q23.18. Is the potential difference \(\Delta V_{\mathrm{ab}}\) between points a and \(\mathrm{b}\) zero? If so, why? If not, which...
-
Rank in order, from largest to smallest, the currents \(I_{1}, I_{2}\), and \(I_{3}\) in the circuit diagram in Figure Q23.12. R = 3R www R = 2R ww ww T FIGURE Q23.12
-
Initially, bulbs A and B in Figure Q23.17 are both glowing. Bulb B is then removed from its socket. Does removing bulb B cause the potential difference \(\Delta V_{12}\) between points 1 and 2 to...
-
Describe how the principles of operant learning theory and social cognitive theory can be used to manage workplace diversity and reduce the effects of workplace stereotypes. How can the...
-
Using an Internet-based search on 'build operate transfer," find an additional definition from a source other than used in Section 14.2. Copy and paste it, as well as any graphics, examples,...
-
I have this data frame with the years and values, can you make a model to predict the value of meats,fish,fruits and vegetables and grains? based on the current values of the table and historical...
-
Determine the reactions in supports A and D and connections B and C. Sketch its shear and moment diagram and determine the magnitude ankoration of the maximum shear and moment for every member. 18 3...
-
What are the risks in a FRA if you are the buyer? Answer the following questions: a. When will the buyer of a five year cap on three- month LIBOR with a 1 percent strike rate expect to receive cash?...
-
Describe the basic strategy in riding the yield curve. Can you ride the yield curve if the yield curve is downward sloping with short- term rates above long- term rates?
-
What do the terms core deposits and volatile, or noncore, deposits mean? Explain how a bank might estimate the magnitude of each.
-
Mulberry Ltd has been using the FIFO costing method to account for inventories for several years. The company also has a policy of paying out all of its profits in cash dividends. What are the likely...
-
Burkinshaw Ltd was established on 1 April 2025 and began by issuing 250000 ordinary shares and 1200008% cumulative preference shares. The preference shares were issued privately at a value of \($4\)...
-
The directors of Outback Ltd decided to issue 200 000 ordinary shares. Required (a) Prepare journal entries (in general journal form) to record the issue of shares as a private placement to Rural Ltd...
Study smarter with the SolutionInn App