Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Financial Math Plz help both questions. 1. (4pts) A loan of $5000 is being repaid with 5 payments including equal repayment of the principal at

image text in transcribed

Financial Math Plz help both questions.

1. (4pts) A loan of $5000 is being repaid with 5 payments including equal repayment of the principal at the end of each year. Interest at an annual effective rate of 10% is paid on the outstanding balance at the end of year. Immediately after the loan was made, the right of the loan was sold at a price that yields an annual effective rate of 5%. Find the price paid for the right of the loan. (Answer: $5670.52) 2. (5pts) Complete the following amortization schedule for a loan of 5,000 repaid with level payments at the end of each year over five years at 4% Year (since loan) 0 Outstanding loan balance 5,000 Payment aoInterest paid Principal repaid 2 4 0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cases In Healthcare Finance

Authors: Louis C. Gapenski, George H. Pink

4th Edition

1567933424, 978-1567933420

More Books

Students also viewed these Finance questions

Question

How can evaluation of LMD become more than an act of faith?

Answered: 1 week ago