1. An $8000 demand loan at a fixed rate of 10.5% was advanced on May 10. A payment of  $2000 was made on July 15 and a final payment was made on Sept. 5. What was the size of  the final payment?

2. A homebuilder requires payments of $15,000, $20,000, and $100,000 in 90, 120, and 150  days, respectively, from today. What is the value of the contract today if the payments are  discounted to yield a 7.6% rate of return?

3. You buy a house from your colleague and sign a promissory note for the $25,000 down  payment. The note is due in two years with an interest rate of 1.25%. You decide to pay off the  down payment early, in one year. What amount will settle the debt if money can earn 0.75%?

Answer rating: 100% (QA)

Solutions to your loan problems 1 Demand Loan Final Payment Loan amount8000 Interest rate105 Payment 12000 on July 15 65 days after advance Final paym... View the full answer