A $100,000 debt is being repaid over 10 years using a sinking fund earning j1 = 6%.What is the book value of the debt after 4 years? (Answer to the nearest dollar)

A) $33,189 B) $47,080 C) $52,920 D) $66,811 A) $33,189 B) $47,080 C) $52,920 D) $66,811 D

A loan is being repaid with monthly payments of $250 at the end of each month.The loan interest rate is j12 = 7.5%.The outstanding loan balance immediately after the 22nd payment is $5404.80.What is the principal portion of the 30th payment?

A) $227.27 B) $35.29 C) $225.86 D) $214.71 A) $227.27 B) $35.29 C) $225.86 D) $214.71 C

A $10,000 bond paying semi-annual coupons at j2 = 8% is redeemable for $10,200 in 10 years.A sinking fund is set up at j2 = 4% to provide the necessary funds at maturity.What is the semi-annual expense of the bond?

A) $819.80 B) $811.57 C) $753.82 D) $742.53 A) $819.80 B) $811.57 C) $753.82 D) $742.53

A city has two sources to borrow $200,000.The first source is to borrow at j1 = 9% and amortize the debt for 10 years with annual payments of $31,164.For the second source,the money can be borrowed at j1 = 8% if the interest is paid annually and the principal is repaid in a lump sum at the end of 10 years.Assume that a sinking fund can earn money at j1 = x%.At which of the following values of × will the second source be cheaper? (a)7% (b)6% (c)5%

A) 7% only B) 6% and 7% C) 5%,6% and 7% D) None of them A) 7% only B) 6% and 7% C) 5%,6% and 7% D) None of them

A loan of $10,000 is taken out and is to be paid back over 10 years using the sinking fund method.Annual interest payments on the loan are due at j1.Annual deposits into a sinking fund earning j1 = 5% are made to accumulate the $10,000.The annual expense (cost)of debt is $1445.What is j1?

A) 6.30% B) 6.40% C) 6.50% D) 6.75% A) 6.30% B) 6.40% C) 6.50% D) 6.75%

A $200,000 home is financed by paying by making a $60,000 down payment and taking out a $140,000 mortgage.The equivalent mortgage interest rate is j12 = 7.87% and monthly mortgage payments of $1068 are to be made.What is the buyer's equity when the mortgage renews 5 years from today? (Answer to the nearest dollar)

A) $129,028 B) $70,972 C) $61,792 D) $10,972 A) $129,028 B) $70,972 C) $61,792 D) $10,972

A sinking fund is established with monthly deposits of $50 earning an interest rate j12 = 12%.If the balance immediately after the nth deposit equals $1161.96,what was the balance immediately after the (n-1)th deposit?

A) $1150.46 B) $1123.08 C) $1111.96 D) $1100.95 A) $1150.46 B) $1123.08 C) $1111.96 D) $1100.95

A loan of $A is repaid over 10 years with quarterly payments at j4 = 10%.The principal portion of the 12th payment is $300.52.What is A? (Answer to the nearest dollar)

A) $15,438 B) $15,061 C) $11,979 D) $9,898 A) $15,438 B) $15,061 C) $11,979 D) $9,898

A loan of $A is taken out and is to be repaid with level monthly payments over n-years at j12 = 18%.The outstanding balance after 75 payments is $16,855.14 and after 76 payments is $16,590.17.What is the monthly payment?

A) $252.83 B) $264.97 C) $513.82 D) D) $517.80 A) $252.83 B) $264.97 C) $513.82 D) D) $517.80

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 4th monthly payment is $12,000.What is A? (Answer to the nearest dollar)

A) $15,075 B) $15,161 C) $16,000 D) $16,091 A) $15,075 B) $15,161 C) $16,000 D) $16,091

At the end of 2-years,the loan is refinanced at j4 = 4% and paid back over 3 more years.What is the new quarterly payment?

A) $581.47 B) $551.33 C) $568.89 D) $520.40 A) $581.47 B) $551.33 C) $568.89 D) $520.40

Exam 5: Repayment of Debts

The interest portion of the 10^th payment of $R on an amortized loan repaid monthly is $7.82,while the principal portion of the 10^th payment $43.93.If interest rate on the loan is j₁₂ = 18%,what is the term of the loan (n)in months? (Answer to the nearest month)

Free

(Multiple Choice)

4.7/5

(88)

Question 1

Correct Answer:

Verified

A $100,000 debt is being repaid over 10 years using a sinking fund earning j₁ = 6%.What is the book value of the debt after 4 years? (Answer to the nearest dollar)

Free

(Multiple Choice)

4.9/5

(73)

Question 2

Correct Answer:

Verified

A loan is being repaid with monthly payments of $250 at the end of each month.The loan interest rate is j₁₂ = 7.5%.The outstanding loan balance immediately after the 22^nd payment is $5404.80.What is the principal portion of the 30^th payment?

Free

(Multiple Choice)

5.0/5

(64)

Question 3

Correct Answer:

Verified

A $10,000 bond paying semi-annual coupons at j₂ = 8% is redeemable for $10,200 in 10 years.A sinking fund is set up at j₂ = 4% to provide the necessary funds at maturity.What is the semi-annual expense of the bond?

(Multiple Choice)

4.8/5

(74)

Question 4

A loan of $A is taken out at j₁₂ = 6% and is repaid with monthly payments of $184.91.The principal portion of the 12^th monthly payment is $115.00.What is A? (Answer to the nearest dollar)

(Multiple Choice)

4.8/5

(74)

Question 5

A city has two sources to borrow $200,000.The first source is to borrow at j₁ = 9% and amortize the debt for 10 years with annual payments of $31,164.For the second source,the money can be borrowed at j₁ = 8% if the interest is paid annually and the principal is repaid in a lump sum at the end of 10 years.Assume that a sinking fund can earn money at j₁ = x%.At which of the following values of × will the second source be cheaper? (a)7% (b)6% (c)5%

(Multiple Choice)

4.9/5

(86)

Question 6

A loan of $10,000 is taken out and is to be paid back over 10 years using the sinking fund method.Annual interest payments on the loan are due at j₁.Annual deposits into a sinking fund earning j₁ = 5% are made to accumulate the $10,000.The annual expense (cost)of debt is $1445.What is j₁?

(Multiple Choice)

4.9/5

(80)

Question 7

A loan for $15,000 is taken out from a loan company that uses the sum of digits method.It is to be paid back over 15 years with semi-annual payments of $920.87 at j₂ = 9%.What is the interest portion of the 11^th payment?

(Multiple Choice)

4.8/5

(61)

Question 8

A loan of $15,000 at j₂ = 9%,is to be paid back over 10 years with semi-annual payments of $1153.14.The total interest paid over the life of the loan is $8062.83.Using the sum of digits method,what is the outstanding balance of the loan after 6 years (12 payments)?

(Multiple Choice)

4.8/5

(83)

Question 9

A corporation takes out a $100,000 loan to be repaid over 6-years with quarterly payments of $5591.28 at j₄ = 10%.The total interest to be paid on the loan over the 6 years is $34,190.72 Under the sum of digits method,what is the outstanding balance after 10 payments?

(Multiple Choice)

4.9/5

(68)

Question 10

A $200,000 home is financed by paying by making a $60,000 down payment and taking out a $140,000 mortgage.The equivalent mortgage interest rate is j₁₂ = 7.87% and monthly mortgage payments of $1068 are to be made.What is the buyer's equity when the mortgage renews 5 years from today? (Answer to the nearest dollar)

(Multiple Choice)

4.8/5

(86)

Question 11

A sinking fund is established with monthly deposits of $50 earning an interest rate j₁₂ = 12%.If the balance immediately after the n^th deposit equals $1161.96,what was the balance immediately after the (n-1)^th deposit?

(Multiple Choice)

4.7/5

(68)

Question 12

A city borrows $1 million,paying semi-annual interest at j₂ = 6%.The city creates a sinking fund in which semi-annual deposits of $35,360.93 are made in order to accumulate the $1 million needed to repay the loan upon maturity.The sinking fund ends earns j₂ = 7%.You are given that the book value of the debt immediately after the 12^th payment is $483,661.06.How much has been accumulated in the sinking fund immediately after the 13^th deposit of $35,360.93?

(Multiple Choice)

4.8/5

(71)

Question 13

A $50,000 bond pays semi-annual coupons at j₂ = 8% is redeemable at 105 in 15 years.The bond carries a sinking fund provision requiring the issuer to make semi-annual deposits into a sinking fund.If the sinking fund earns j₂ = 6%,what is the semi-annual expense of this debt (i.e.this bond issue)?

(Multiple Choice)

4.8/5

(89)

Question 14

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?

(Multiple Choice)

4.8/5

(80)

Question 15

A loan of $A is repaid over 10 years with quarterly payments at j₄ = 10%.The principal portion of the 12^th payment is $300.52.What is A? (Answer to the nearest dollar)

(Multiple Choice)

4.8/5

(77)

Question 16

A loan of $A is taken out and is to be repaid with level monthly payments over n-years at j₁₂ = 18%.The outstanding balance after 75 payments is $16,855.14 and after 76 payments is $16,590.17.What is the monthly payment?

(Multiple Choice)

4.8/5

(79)

Question 17

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^th monthly payment is $12,000.What is A? (Answer to the nearest dollar)

(Multiple Choice)

4.9/5

(74)

Question 18

At the end of 2-years,the loan is refinanced at j₄ = 4% and paid back over 3 more years.What is the new quarterly payment?

(Multiple Choice)

4.8/5

(74)

Question 19

A loan is being repaid by 20 equal semi-annual installments.The principal portion of the 8^th payment is $245.29 and the interest portion is $254.71.What interest rate,j₂ is being charged on the loan?

(Multiple Choice)

4.9/5

(90)

Question 20

Showing 1 - 20 of 85

The interest portion of the 10^th payment of $R on an amortized loan repaid monthly is $7.82,while the principal portion of the 10^th payment $43.93.If interest rate on the loan is j₁₂ = 18%,what is the term of the loan (n)in months? (Answer to the nearest month)

A $100,000 debt is being repaid over 10 years using a sinking fund earning j₁ = 6%.What is the book value of the debt after 4 years? (Answer to the nearest dollar)

A loan is being repaid with monthly payments of $250 at the end of each month.The loan interest rate is j₁₂ = 7.5%.The outstanding loan balance immediately after the 22^nd payment is $5404.80.What is the principal portion of the 30^th payment?

A $10,000 bond paying semi-annual coupons at j₂ = 8% is redeemable for $10,200 in 10 years.A sinking fund is set up at j₂ = 4% to provide the necessary funds at maturity.What is the semi-annual expense of the bond?

A loan of $A is taken out at j₁₂ = 6% and is repaid with monthly payments of $184.91.The principal portion of the 12^th monthly payment is $115.00.What is A? (Answer to the nearest dollar)

A loan of $10,000 is taken out and is to be paid back over 10 years using the sinking fund method.Annual interest payments on the loan are due at j₁.Annual deposits into a sinking fund earning j₁ = 5% are made to accumulate the $10,000.The annual expense (cost)of debt is $1445.What is j₁?

A loan for $15,000 is taken out from a loan company that uses the sum of digits method.It is to be paid back over 15 years with semi-annual payments of $920.87 at j₂ = 9%.What is the interest portion of the 11^th payment?

A loan of $15,000 at j₂ = 9%,is to be paid back over 10 years with semi-annual payments of $1153.14.The total interest paid over the life of the loan is $8062.83.Using the sum of digits method,what is the outstanding balance of the loan after 6 years (12 payments)?

A corporation takes out a $100,000 loan to be repaid over 6-years with quarterly payments of $5591.28 at j₄ = 10%.The total interest to be paid on the loan over the 6 years is $34,190.72 Under the sum of digits method,what is the outstanding balance after 10 payments?

A sinking fund is established with monthly deposits of $50 earning an interest rate j₁₂ = 12%.If the balance immediately after the n^th deposit equals $1161.96,what was the balance immediately after the (n-1)^th deposit?

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 loan of $A is repaid over 10 years with quarterly payments at j₄ = 10%.The principal portion of the 12^th payment is $300.52.What is A? (Answer to the nearest dollar)

A loan of $A is taken out and is to be repaid with level monthly payments over n-years at j₁₂ = 18%.The outstanding balance after 75 payments is $16,855.14 and after 76 payments is $16,590.17.What is the monthly payment?

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^th monthly payment is $12,000.What is A? (Answer to the nearest dollar)

At the end of 2-years,the loan is refinanced at j₄ = 4% and paid back over 3 more years.What is the new quarterly payment?

A loan is being repaid by 20 equal semi-annual installments.The principal portion of the 8^th payment is $245.29 and the interest portion is $254.71.What interest rate,j₂ is being charged on the loan?

Simple Interest and Simple Discount

Compound Interest

Simple Annuities

General and Other Annuities

Bonds

Business Decisions, Capital Budgeting and Depreciation

Contingent Payments

Filters

Exam 5: Repayment of Debts

The interest portion of the 10th payment of $R on an amortized loan repaid monthly is $7.82,while the principal portion of the 10th payment $43.93.If interest rate on the loan is j12 = 18%,what is the term of the loan (n)in months? (Answer to the nearest month)

A $100,000 debt is being repaid over 10 years using a sinking fund earning j1 = 6%.What is the book value of the debt after 4 years? (Answer to the nearest dollar)

A loan is being repaid with monthly payments of $250 at the end of each month.The loan interest rate is j12 = 7.5%.The outstanding loan balance immediately after the 22nd payment is $5404.80.What is the principal portion of the 30th payment?

A $10,000 bond paying semi-annual coupons at j2 = 8% is redeemable for $10,200 in 10 years.A sinking fund is set up at j2 = 4% to provide the necessary funds at maturity.What is the semi-annual expense of the bond?

A loan of $A is taken out at j12 = 6% and is repaid with monthly payments of $184.91.The principal portion of the 12th monthly payment is $115.00.What is A? (Answer to the nearest dollar)

A loan of $10,000 is taken out and is to be paid back over 10 years using the sinking fund method.Annual interest payments on the loan are due at j1.Annual deposits into a sinking fund earning j1 = 5% are made to accumulate the $10,000.The annual expense (cost)of debt is $1445.What is j1?

A loan for $15,000 is taken out from a loan company that uses the sum of digits method.It is to be paid back over 15 years with semi-annual payments of $920.87 at j2 = 9%.What is the interest portion of the 11th payment?

A loan of $15,000 at j2 = 9%,is to be paid back over 10 years with semi-annual payments of $1153.14.The total interest paid over the life of the loan is $8062.83.Using the sum of digits method,what is the outstanding balance of the loan after 6 years (12 payments)?

A corporation takes out a $100,000 loan to be repaid over 6-years with quarterly payments of $5591.28 at j4 = 10%.The total interest to be paid on the loan over the 6 years is $34,190.72 Under the sum of digits method,what is the outstanding balance after 10 payments?

A sinking fund is established with monthly deposits of $50 earning an interest rate j12 = 12%.If the balance immediately after the nth deposit equals $1161.96,what was the balance immediately after the (n-1)th deposit?

A $50,000 bond pays semi-annual coupons at j2 = 8% is redeemable at 105 in 15 years.The bond carries a sinking fund provision requiring the issuer to make semi-annual deposits into a sinking fund.If the sinking fund earns j2 = 6%,what is the semi-annual expense of this debt (i.e.this bond issue)?

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 loan of $A is repaid over 10 years with quarterly payments at j4 = 10%.The principal portion of the 12th payment is $300.52.What is A? (Answer to the nearest dollar)

A loan of $A is taken out and is to be repaid with level monthly payments over n-years at j12 = 18%.The outstanding balance after 75 payments is $16,855.14 and after 76 payments is $16,590.17.What is the monthly payment?

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 4th monthly payment is $12,000.What is A? (Answer to the nearest dollar)

At the end of 2-years,the loan is refinanced at j4 = 4% and paid back over 3 more years.What is the new quarterly payment?

A loan is being repaid by 20 equal semi-annual installments.The principal portion of the 8th payment is $245.29 and the interest portion is $254.71.What interest rate,j2 is being charged on the loan?

Simple Interest and Simple Discount

Compound Interest

Simple Annuities

General and Other Annuities

Bonds

Business Decisions, Capital Budgeting and Depreciation

Contingent Payments

Filters

The interest portion of the 10^th payment of $R on an amortized loan repaid monthly is $7.82,while the principal portion of the 10^th payment $43.93.If interest rate on the loan is j₁₂ = 18%,what is the term of the loan (n)in months? (Answer to the nearest month)

A $100,000 debt is being repaid over 10 years using a sinking fund earning j₁ = 6%.What is the book value of the debt after 4 years? (Answer to the nearest dollar)

A loan is being repaid with monthly payments of $250 at the end of each month.The loan interest rate is j₁₂ = 7.5%.The outstanding loan balance immediately after the 22^nd payment is $5404.80.What is the principal portion of the 30^th payment?

A $10,000 bond paying semi-annual coupons at j₂ = 8% is redeemable for $10,200 in 10 years.A sinking fund is set up at j₂ = 4% to provide the necessary funds at maturity.What is the semi-annual expense of the bond?

A loan of $A is taken out at j₁₂ = 6% and is repaid with monthly payments of $184.91.The principal portion of the 12^th monthly payment is $115.00.What is A? (Answer to the nearest dollar)

A loan of $10,000 is taken out and is to be paid back over 10 years using the sinking fund method.Annual interest payments on the loan are due at j₁.Annual deposits into a sinking fund earning j₁ = 5% are made to accumulate the $10,000.The annual expense (cost)of debt is $1445.What is j₁?

A loan for $15,000 is taken out from a loan company that uses the sum of digits method.It is to be paid back over 15 years with semi-annual payments of $920.87 at j₂ = 9%.What is the interest portion of the 11^th payment?

A loan of $15,000 at j₂ = 9%,is to be paid back over 10 years with semi-annual payments of $1153.14.The total interest paid over the life of the loan is $8062.83.Using the sum of digits method,what is the outstanding balance of the loan after 6 years (12 payments)?

A corporation takes out a $100,000 loan to be repaid over 6-years with quarterly payments of $5591.28 at j₄ = 10%.The total interest to be paid on the loan over the 6 years is $34,190.72 Under the sum of digits method,what is the outstanding balance after 10 payments?

A sinking fund is established with monthly deposits of $50 earning an interest rate j₁₂ = 12%.If the balance immediately after the n^th deposit equals $1161.96,what was the balance immediately after the (n-1)^th deposit?

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 loan of $A is repaid over 10 years with quarterly payments at j₄ = 10%.The principal portion of the 12^th payment is $300.52.What is A? (Answer to the nearest dollar)

A loan of $A is taken out and is to be repaid with level monthly payments over n-years at j₁₂ = 18%.The outstanding balance after 75 payments is $16,855.14 and after 76 payments is $16,590.17.What is the monthly payment?

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^th monthly payment is $12,000.What is A? (Answer to the nearest dollar)

At the end of 2-years,the loan is refinanced at j₄ = 4% and paid back over 3 more years.What is the new quarterly payment?

A loan is being repaid by 20 equal semi-annual installments.The principal portion of the 8^th payment is $245.29 and the interest portion is $254.71.What interest rate,j₂ is being charged on the loan?