Purchase Solution

Mathematics - Interest and Loan Repayment

Not what you're looking for?

Ask Custom Question

Please see the attached file for the fully formatted problems.

1.21) Geometric Series- Intro to Finance

10
∑ 500
I=1 1.12 * 2825.11

TOPIC: TIME VALUE OF MONEY INTRO TO FINANCE

2.34)
Suppose you put$250 at the beginning of every month into savings that credits interest at the annual rate of 6% per annum, but compounds it monthly. Find the amount in this account after 25 years.
*$174,114.73

2.48)
Adana Corporation is interested in buying a building for $500,000 in cash or it may pay for it in 50 monthly installments of $12,000 each. If the cost of capital for Adana's is 9%, which method should it use?
? Installment- show work for answer

2.50)
Akron Corporation has borrowed 1 million from Canton Bank with the understanding that Akron will pay the loan back in 12 monthly installments of $90,000 each. Find the annual rate of interest charged by the bank.
* 14.54%

Attachments
Purchase this Solution
Solution Summary

Complete, Neat and Step-by-step Solutions are provided in the attached file.

Purchase this Solution
Free BrainMass Quizzes
Multiplying Complex Numbers

This is a short quiz to check your understanding of multiplication of complex numbers in rectangular form.

Solving quadratic inequalities

This quiz test you on how well you are familiar with solving quadratic inequalities.

Graphs and Functions

This quiz helps you easily identify a function and test your understanding of ranges, domains , function inverses and transformations.

Know Your Linear Equations

Each question is a choice-summary multiple choice question that will present you with a linear equation and then make 4 statements about that equation. You must determine which of the 4 statements are true (if any) in regards to the equation.

Geometry - Real Life Application Problems

Understanding of how geometry applies to in real-world contexts

View More Free Quizzes
Related BrainMass Solutions

  • Mathematics - Calculate Monthly Loan Repayment

    279970 Mathematics - Calculate Monthly Loan Repayment Assume that the average loan on a home is quoted to be $55,000.00. Calculate the monthly repayment necessary to have the loan repaid after 25 years if the interest rate is 7.5%.

  • Calculating annual payments on an amortizing loan

    The interest rate is 8% and the beginning loan amount was $1000. The interest for the first year is 1000X8% = $80. From the total repayment of $301.92, remove the interest amount to get the principal repayment.

  • Mortgage with Points: Effective Annual Interest Rate

    For example, if the loan is for $100,000, and two points are charged, the loan repayment schedule is calculated on a $100,000 loan, but the net amount the borrower receives is only $98,000.

  • This post addresses a loan amortization practice question.

    If the loan were amortized over 10 years rather than 7 years, and if the interest rate were the same in either case, the first payment would include more dollars of interest under the 7-year amortization plan. c.)

  • Two Forms of Debt

    Loan principal $500,000 (A) Duration 5 (B) Compounding 2 (C) Interest rate 5% (D) Discount factor of annuity 8.75 =(1 - ((1 + (D/C)^(-B * C))))/(D/C) Monthly repayments $57,129 =A/8.75 LOAN REPAYMENT SCHEDULE Year Period Principal Repayment Interest

  • Analysis of Credit Card Debt

    Now we know the monthly interest rate, we know the monthly repayment, we know the loan value and we need to find out the number of periods for full repayment.

  • Secured versus unsecured credit

    The amount of loan is normally low, repayment period is less, and rate of interest is unusually high. It is as far as possible an avoidable line of credit - and a burden on the business.

  • Housing Loan Question : Principle, Interest and Repayment Structure

    20389 Housing Loan Question : Principle, Interest and Repayment Structure A housing loan is taken out for $250,000. The rate of interest is 6% per annum and the loan is over a 25 year period. The repayments are made monthly.

  • Calculating dollar cost of a JPY loan

    405617 Calculating Dollar Cost of a JPY Loan ABC Inc. borrows 100m JPY when JPY spot rate is JPY120/$. The JPY interest rate for the loan is 3%. One year later when ABC pays back the JPY principal and interest, the exchange rate is JPY 95/$.

  • See attachment

    With same T-bill and default assumption, the calculation of probability of repayment and the risk premium on a 1 year BB rated loan yielding 13 percent is as below- Probability of Repayment: The probability of loan repayment with 13% yield rate will

View More Related Solutions