The following questions:
A company borrows $100,000 with interest at j12 #9% to be paid back by monthly payments. After 5 years, interest rates have dropped to j12 =6% and the company wishes to refinance their loan. The outstanding balance of the loan after 5 1. years (60 payments) is $39,660.90. If the company refinances the loan, they are subject to a penalty equal to 3 times one month's interest on the outstanding balance. Adding the penalty to the loan balance, and assuming the company will pay off the loan over 29 more months, what is the new monthly payment? You are given: a291.0075- 25.9759, a291,005 = 26.9330 2. A woman takes out a loan to be paid back over 4 years at j12 # 6% with monthly payments of $281.82. After 14 payments, the outstanding balance on the loan is $8791.53. The woman then misses the next 3 payments (from time 15 to 17). She begins making regular monthly payment t time 18. If she still intend loan in full by the end of 4 ent? (she has 31 payments left) 3. A large loan is to be repaid over 25 years with monthly payments. After 3 years, the outst ce of the loan is $96,329.18 and the loan is refinanced at j12 = 6%. If the new monthly payment is $700, what refinancing penalty was assessed? You are given: 2641.005 = 146.3969. 4 A $1000 bond, paying semi-annual coupons at j2 = 7%, is redeemable in 5 years. It is purchased for $966.20 to yield j2 = 8%. What is the bond redeemable at? (to nearest $1) 5. A company borrows $100,000 with interest at j12 =9%. The loan is to be amortized by 88 monthly payments of $1550, plus a final smaller payment. What is the outstanding balance after 40 payments have been made? 6. Meg A. Bux takes out a loan for $10,000 at j4 = 10%, to be repaid with quarterly payments of $398.38. What is the outstanding balance of the loan just before the 27 payment is made? You are given: $2610.025 = 36.0117 and $2710.025 " 37.912. 7. A loan of size A is to be amortized by monthly payments of $1000. The rate of interest on the loan is j12 = 18% . The outstanding balance immediately after the 4 monthly payment is $12,000.What is A? (answer to nearest dollar) 8 A loan is being amortized over n-years with with monthly payments of $295.32. The rate of interest on the loan is j12 = 12%. The principal repaid in the 25 payment is $206.41.What is the size of the loan? (answer to nearest dollar) 9 A company borrows $100,000 with interest at j12 #9%. The loan is to be amortized by monthly payments of $1550 for as long as necessary. A final smaller payment will be calculated so the loan will be exactly repaid. The outstanding balance immediately after the 88 payment is $796.44. What is the value of the 89 and final payment? 10. A company borrows $100,000 with interest at j12 # 9%. The loan is to be amortized by monthly payments of $1550 for as long as necessary. A final smaller payment will be calculated so the loan will be exactly repaid. What is the amount of . interest paid in the 2nd monthly payment of $1550? A loan is being amortized with 25 quarterly payments. The principal portion of the 16th payment is $609.34. If j4 = 10%, what is original amount of the loan? (answer to nearest dollar) 11. You are given: $2510.025 = 34.1578, a2510.025 = 18.4244 12. A loan is taken out at j12 = 18% and is paid back with monthly payments of $279.00, plus a smaller concluding payment. With one month left on the loan, the outstanding balance is $268.66. What is the size of the final loan payment? A $2000 bond is redeemable at 105 in 6 years. It pays semi-annual coupons at j2 = 10% and is bought to also yield j2 = 10%. This bond sells at: O A. a premium of $44.32 13. B. a discount of $44.32 O C. par O D. a discount of $55.68
