You give a loan to a start-up in smart construction. The amount of the loan is...

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You give a loan to a start-up in smart construction. The amount of the loan is $56,000 with a du- ration 10 years. The interest on the loan is fixed at 8%, being paid out yearly. The total amount becomes due at the end of the loan period. a.) Calculate the total amount of interest b.) Draw a cash flow diagram for the loan amount and interest Problem 2 (20 points): You buy an excavator for $100,000 by using a loan from a bank. The loan period is 8 years and every year, you pay back 1/8 of the loan. Please develop a table showing interest, principal and total payment. What is the total amount of interest given a rate of 6%? Problem 3 (10 points): What is the future value of the following cash flow at an interest rate of 7%; all payments are end-of-the-year: 10,000, 4,000, 0, 3,000, 1,000, 2,000, 3,000? Problem 4 (10 points): What is the present value of the following cash flow at an interest rate of 7%: 10,000, 4,000, 0, 3,000, 1,000, 2,000, 3,000? Problem 5 (15 points): You safe $10,000 and leave it in the bank at an interest rate of i = 7%. How many years later will the amount have doubled? You give a loan to a start-up in smart construction. The amount of the loan is $56,000 with a du- ration 10 years. The interest on the loan is fixed at 8%, being paid out yearly. The total amount becomes due at the end of the loan period. a.) Calculate the total amount of interest b.) Draw a cash flow diagram for the loan amount and interest Problem 2 (20 points): You buy an excavator for $100,000 by using a loan from a bank. The loan period is 8 years and every year, you pay back 1/8 of the loan. Please develop a table showing interest, principal and total payment. What is the total amount of interest given a rate of 6%? Problem 3 (10 points): What is the future value of the following cash flow at an interest rate of 7%; all payments are end-of-the-year: 10,000, 4,000, 0, 3,000, 1,000, 2,000, 3,000? Problem 4 (10 points): What is the present value of the following cash flow at an interest rate of 7%: 10,000, 4,000, 0, 3,000, 1,000, 2,000, 3,000? Problem 5 (15 points): You safe $10,000 and leave it in the bank at an interest rate of i = 7%. How many years later will the amount have doubled?

Answer rating: 100% (QA)

a To calculate the total amount of interest on the loan we can use the formula Total Interest Loan Amount Interest Rate Loan Duration Loan Amount 56000 Interest Rate 8 008 Loan Duration 10 years Total ... View the full answer