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East Side Bank offers the following effective rates on 5-year loans: 8% for the first two years, 10% for the third year, 11% for the fourth year, and 12% on the fifth year. If Php. 500 000.00 is borrowed, determine the lump-sum amount to be paid at the end of the loan period.
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- If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?You obtain a loan for ₱ 1,500,000.00 payable in three equal annual installments of ₱50,000.00 each. Each interest to be paid at 10% of the unpaid principal. Assuming an effective rate of 12%. 1. Compute for the present value of the loan. 2. Prepare a loan amortization table.Telemundo Ltd. borrows K100, 000 from AB bank. The loan is to be repaid in 1year with periodic payments made at the end of each month. The lender charges 20% interest per annum. Calculate the monthly charge and construct the amortization schedule for the first FIVE (5) repayments on this loan.
- Two banks are offering loan facility of Rs. 50,000 with an interest rate of 15% pa. for a period of 5 years Bank A offers the facility with interest rate of 15% pa with annual compounding and annual installment and Bank B with semiannual compounding and semiannual payment. You are required to calculate the installment amount and also the principal paid in the third installment for both options.Consider a loan in the amount of BRL 420,000 to be repaid via PRICE, through 5 quarterly installments and an interest rate of 10% p.a., with a grace period of 3 quarters in which the interest is incorporated into the debt. Complete the financial worksheet for this loan.A businessman wishes to borrow an amount of K4 million for a term of 3 years.The agreed rate of interest is 10% per annum effective for the first 2 years, and 6%per annum effective for the final year.Repayments on the loan are made annually in arrears.The amount of the level annual repayment is K1,590,328.58.(i) Draw up the loan schedule for the full three-year period.(ii) Calculate what percentage of the loan has been repaid by the end of year 2.(iii) Explain how this percentage figure would alter if the rate of interest had insteadbeen 6% for the first two years and 10% for the final year.
- You are given a loan on which interest is charged over a 4-year period, as follows:i. an effective rate of discount of 6% for the first year;ii. a nominal rate of discount of 4% compounded quarterly for the second year;iii. a nominal rate of interest of 5% compounded semiannually for the third year; andiv. a force of interest of 5% for the fourth year.Calculate the annual effective rate of interest over the 4-year period.You obtain a loan for 1,500,000 payable in three equal annual installments of 500,000 each. Interest to be paid at 10% of the unpaid principal. Assuming an effective rate of 12%, compute for the present value of the loan as well as prepare a loan amortization table.A loan of ₱2,000 is made for a period of 13 months, from January 1 to January 31 the following year, at a simple interest rate of 20%. What future amount is due at the end of the loan period? Ans: ₱2,433.33
- SportZ has negotiated a loan of $25 000 with interest at 7.6% per annum, to be paid as month-end payments of $2200.00 over the next year. Construct a loan amortization schedule to answer the following questions. i. How much interest is paid over the first two months? ii. How much of the principal is paid by the end of the first two months? iti. How much interest is paid over the term of the loan? iv. What is the amount of the final payment?]You are given a loan on which interest is charged over a four-year period, as follows: i) An effective rate of discount of 6% for the first year ii) A nominal rate of discount of 5% compounded every two years for the second year iii) A nominal rate of interest of 5% compounded semiannually for the third year iv) A force of interest of 5% for the fourth year. Calculate the annual effective rate of interest over the four-year period.For a short-term cash requirement of 85,000 TL, a 12-month maturity loan with equal installments will be withdrawn from the bank. If the monthly interest rate is 1.75, prepare the loan payment table (loan amortization table) by finding the monthly payment amount.
