Question: PLEASE PROVIDE THERE ARE 3 QUESTIONS. NEED HELP WITH ALL 3 QUESTIONS. Princess Leia borrows 500,000 for 20 years at a 6% annual effective interest


PLEASE PROVIDE THERE ARE 3 QUESTIONS. NEED HELP WITH ALL 3 QUESTIONS.
Princess Leia borrows 500,000 for 20 years at a 6% annual effective interest rate. Her annual payments are 15,000 for the first 10 years and P for the second 10 years. 1. a. Find the outstanding balance at time 10 (hint: you don't need P to calculate this value) What is the special term used to describe the interest over the first 10 years demonstrated in the problem? b. c. Extra credit (5 pts) Calculate P 2. MSOE Private Equity Discovery Fund is considering loans of 10,000 each to 50 entrepreneurs. The loans are due in 3 years and are to be paid off by one payment of principal and accumulated interest on the due date. The Fund wishes to earn a minimum 1200 annual retum on the overall entrepreneur loan portfolio. For the 50 person group, the Fund projects that 2 will default on the loan with no recovery, and another 2 will default with a 50% recovery of the amount due. Find the effective annual interest rate that the Fund must charge in order to meet its target return. A loan of 100,000 is to be repaid in 4 level annual payments starting one year after the loan date. For the first 2 years, the annual interest rate is 8%, for the last 2 years, the annual interest rate is 4%. Find the annual payment and complete the loan amortization table. 5. Payment Interest Due Principal Repaid Outstanding Balance 0 100,000 2 3 4
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