Answered step by step
Verified Expert Solution
Question
1 Approved Answer
(1 point) Dominic borrows 7700 dollars today, and agrees to repay the loan by making annual interest payments to the lender, and by also accumulating
(1 point) Dominic borrows 7700 dollars today, and agrees to repay the loan by making annual interest payments to the lender, and by also accumulating a sinking fund with increasing annual deposits to repay the principal. The interest rate on the loan is 7.9 percent, and the interest paid on the sinking fund is 7.4 percent, both effective. If the loan is to be settled 13 years from now, and the sinking fund deposits increase by 8 dollars per year, what is Dominic's total outlay at the end of the 6th year? (Assume the first interest payment and sinking fund deposits are both due in one year.) Answer = dollars. (1 point) Fred takes out a loan from C'Ville Bank at a nominal rate of 10.5 percent convertible monthly, and agrees to repay the loan with 36 equal monthly payments, the first due a month after the loan is made. Immediately after making the 13th payment, C'Ville sells the loan to Richmond Bank for 2000 dollars. If Richmond Bank's yield on the loan is 14.7 percent convertible monthly, how much did Fred originally borrow? Answer = dollars (1 point) A loan is to amortized by n level annual payments of X, where n > 6. You are given: i) The amount of interest in the first payment is $ 798.5. ii) The amount of interest in the third payment is $ 782.38. iii) The amount of interest in the fifth payment is $ 761.79. Calculate X. Annual payment X = $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started