TVM Concepts

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8. What if Jane is to make the loan payments at the beginning of every year, starting today. How much does she have to pay today to pay off the loan in one lump sum? The interest rate is still 10%. 9. Suppose you purchase a home for $250,000. You have a down payment of $50,000 and plan to borrow the rest. You can lock in a 30-year fixed rate mortgage of 5.84% today. Calculate the amount of your monthly payments. 10. Suppose a business plans to make annual payments on a $650,000 loan. The term of the loan is 5 years. The interest rate on the loan is 6%. Amortize the loan by hand and using your financial calculator. Show the calculations of yearly payment, interest, principal repayment, and remaining principal balance in the space below