Interest Rate and Loan Payment

Related BrainMass Solutions

• Amortization - Early Payoff: Robert - What will the remaining balance be on the loan after he makes the 36th payment?

  EMI = Loan amount * interest rate per period/(1-1/(1+interest rate per period)^number of payment periods)) Loan amount = 20000 Interest rate per period = 12%/12 = 1.0% per period (month) Number of payment periods = 4*12=48 months EMI= 20000

• Car Loan: effective annual interest rate, monthly payment

  value= $6,000 Therefore, annuity= $141.50 =6000/42.401344 The monthly payment is equal to $141.50 Effective annual interest rate on the loan= 8.30% =(1+.0067) ^ 12 - 1 The solution calculates the monthly payment and the

• Loan Amortization Schedule and Determining Interest Rate

  To create LAS you need to input no. of payment, loan amount, date of first payment and annual interest rate.

• Car Buying Project

  Again let us start with the shortest loan and see whether we can afford it with $500 monthly payment. 36 month Loan Cost Rate/Monthly Interest rate=0.3992% from Bankrate.com Monthly Interest (i) i=rate/12 i=4.79%/12=0.003992

• Managerial Finance Gittman

  This solution is comprised of a detailed explanation to calculate the annual, end-of-year loan payment, prepare a loan amortization schedule showing the interest and principal breakdown of each of the three loan payments, and explain why the interest

• Real Estate Loan Calculations

  Problem 2: An adjustable rate loan has a 2.50% margin with change caps of 2% per year and a life cap of 5%. The start rate is 5%. The interest rate changes every 12 months. Calculate the following for a $1,000,000 loan at these terms. A.

• Preparing loan amortization schedule

  A loan of $15,000 is taken at a 14% annual rate of interest and it is to be repaid over 3 years. The annual year end payment comes out to be $6,460.97 (Refer Appendix-A). Loan amortization schedule is attached in Appendix-A.

• Loan Interest Deduction for Liz Rogers - Amortization Schedule

  The interest expense is shown in the table above under the interest column (please see the attached file) The solution explains how to prepare a loan amortization schedule, including determining an annual loan payment and interest expenses in

• main characteristics of a fixed-rate loan

  Usually is 15, 20 and 30 year terms Generally have to have good to excellent credit to get a reasonable rate Interest rate is generally higher than an adjustable Adjustable Loan: Usually start with a low interest rate and lower monthly payment

• What is the relationship between the variables in a loan amo

  If loan interest rates are higher, the payment on the loan and the interest payments will also be higher, in conjunction with the increased loan interest rate.