Your supervisor has tasked you with evaluating several loans related to a new expansion project. Using the PVIFA table (table 9.4 in the textbook), determine the annual payment on a $450,000, 8% business loan from a commercial bank that is to be amortized over a five-year period. Does this payment seem reasonable
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Your supervisor has tasked you with evaluating several loans related to a new expansion project. Using the PVIFA table (table 9.4 in the textbook), determine the annual payment on a $450,000, 8% business loan from a commercial bank that is to be amortized over a five-year period. Does this payment seem reasonable
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- Suppose you are a relationship manager at an international bank. A customer who recently got admission at a prestigious Business School approached you for an education loan of Rs. 36,00,000. Your bank offers the education loan at 9.6 percent to be repaid in 10 years in EMIs. You are assigned the task of preparing the amortization schedule for the customer and answer the following. Prepare the amortization schedule for the first 5 EMIs. What will be interest paid for 93th EMI? What will be the loan balance after 93th EMI? What is the total interest paid for the loan?Your supervisor has tasked you with evaluating several loans related to a new expansion project. Using the PVIFA table, determine the annual payment on a $450,000, 8% business loan from a commercial bank that is to be amortized over a five-year period. Show your work. Does this payment seem reasonable? Explain.Suppose you secure a home improvement loan in the amount of $5,000 from a local bank. The loan officer gives you the following loan terms:• Contract amount = $5,000• Contract period = 24 months• Annual percentage rate = 12%• Monthly installment = $235 .37Shown is the cash flow diagram for this loan. Construct the loan payment schedule by showing the remaining balance, interest payment, and principal payment at the end of each period over the life of the loan.
- Lang Industrial Systems Inc. is thinking of expanding its operations and is considering financing the expansion by borrowing from a local bank. Under consideration is a loan for $1.25 million dollars, repayment monthly for 30 years. Required: a) b) If the interest rate on the loan is 6%, calculate the monthly repayment. Prepare an amortization schedule for the first two (2) months of the loan.A loan of $5,000 with interest at 7.75% compounded annually is amortized by equal payments at the end of each year for five years. 1. Show your financial calculator inputs for the payment calculation. 2. Create a full amortization schedule for the loan. A template is available in the Test folder (underneath the link to our test. You can fill in the Word file template and attach below,It is important to know how to build an amortization schedule when firms (or individuals) take out bank loans. It all start with calculating the monthly payment using the formula below.using the formula provided, do calculations to confirm the monthly payment for that loan based on the following information Loan amount (P): $60,000 Number of periods (n): 3 years = 36 months Interest (i): 12% per year = 1% per month (should be expressed as 0.01)
- Please provide your complete solutions to the given problems. You may use MS Excel for your solutions. 1. A loan is to be amortized for 4 years through equal payments of PhP48,532.49 at the end of every 6- month period. If the loan earns interest at 7% compounded semi-annually, create an amortization schedule and find: a. the present value of the loan b. the outstanding principal after 3 years c. the amount of principal already paid after 3 years (sum of the principal repayment column for the first 3 years) d. the total interest paid on this loan (sum of the interest column)As a small software developer firm, you have approached the AXZ Bank to obtain a term loan so that the firm can purchase a new server. The AXZ bank provides two (2) offers to your company, as listed below:a) a loan of $100,000 over a five (5) year period at an interest rate of 7.65% per annum (per year) payable at the end of each month.b) a loan of $100, 000 over a three (3) year period at an interest rate of 5.5% per annum (per year) payable at the end of each month. 1. Calculate the monthly loan instalments for each offer listed above – a) and b).2. Calculate the total interest payments for each offer listed above – a) and b). Please kindly provide all the workings and calculations properly to understand. Thank you(b) The company is considering purchasing a new delivery truck for $1,200,000. The intention is to obtain a 5-year loan from their bank, at an interest rate of 9% per annum. Annual payments are expected to be made on the loan. Required:i. Calculate Micron Industries’ annual payment on this loan. ii. Prepare the 5-year Amortization Schedule for this loan, clearly showing the interest and principal payment annually.
- An institutional lender is willing to make a loan for $1 million on an office building at a 6 percent interest (accrual) rate with payments calculated using an 4 percent pay rate and a 30-year loan term. (That is, payments are calculated as if the interest rate were 4% with monthly payments over 30 years.) After the first five years the payments are to be adjusted so that the loan can be amortized over the remaining 25-year term. Required: a. What is the initial payment? b. How much interest will accrue during the first year? c. What will the balance be after five years? d. What will the monthly payments be starting in year 6?You are in negotiations to make a 7-year loan of $22,000 to DeVille Corporation. To repay you, DeVille will pay $2,500 at the end of Year 1, $5,000 at the end of Year 2, and $7,500 at the end of Year 3, plus a fixed but currently unspecified cash flow, X, at the end of each year from Year 4 through Year 7. You are confident the payments will be made, since DeVille is essentially riskless. You regard 8% as an appropriate rate of return on a low risk but illiquid 7-year loan. What cash flow must the investment provide at the end of each of the final 4 years, that is, what is X? A.3558.55 B.3,603.35 C.3,580.95 D.3,592.15 E. 3,569.75Click to see additional instructions To provide funding for a particular project, a company decides to go for a loan worth GHC 200,000. The loan is to be paid at an interest rate of 18% per year in six annual installments starting from the beginning of the second year. The size of the equal payment needed each year is GHS