Exam 5: Repayment of Debts

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.She then misses the next 4 payments (from time 15 to 18).She begins making regular monthly payments at time 19.If she still wants to pay back her loan in full by the end of 4 years,what is the size of her new monthly payment?

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 payments at time 18.If she still intends to pay back her loan in full by the end of 4 years,what is the size of her new monthly payment? (she has 31 payments left)

What is the interest portion of the third (3^rd)payment?

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.She then misses the next 4 payments (from time 15 to 18).She begins making regular monthly payments at time 19.If she still wants to pay back her loan in full by the end of 4 years,what is the size of her new monthly payment?

A loan of $12,000 is being repaid over 5-years with the following payment history: • Quarterly payments of $769.77 for the first two years at j₄ = 10% • Loan refinanced at j₄ = 8%,with quarterly payments dropping to $746.65 for one year • Loan refinanced again,this time at j₄ = 6% What is the outstanding balance of the loan at this point in time (after 3 years,with 8 payments remaining)?

A 5-year $6000 loan is to be repaid with monthly payments of $115.99 at j₁₂ = 6%.Just after making the 30^th payment,the borrower has the balance refinanced at j₁₂ = 3% with the term of the loan to remain unchanged.If the balance is determined by the sum-of-digits method,what will be the new monthly payment?

A city borrows $1,000,000 at j₂ = 9.5%.They pay off this loan over eight years using the sinking fund method.The sinking fund interest rate is j₂ = 8%.What is the book value of the debt after 5 years? (loan interest and sinking fund deposits are made semi-annually; (Answer to the nearest dollar)

A city issues $100,000 worth of bonds,redeemable at par and paying interest at j₂ = 7%.A sinking fund,earning j₂ = 11%,is created to pay for the redemption of the bonds.The semi-annual cost of the debt is $6367.93.What is the book value of the debt at the end of 6 years?

A $500,000 loan can be amortized over 15 years with annual payments of $58,414.77 at j₁ = 8% (option A).Alternatively,$500,000 can be borrowed at j₁ = x%,with interest paid at the end of each year and the principal repaid with one lump sum at the end of 15 years (option B).For option B,a sinking fund can be set up earning j₁ = 6%.What is the value of x% such that the annual expense under the two options is the same?

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?

A corporation takes out a loan of $A,to be paid back over 12 years using the sinking fund method.The interest rate on the loan is j₄ = 8%,while the sinking fund earns j₄ = 7%.The quarterly expense of debt is $6,509.08.What is the value of A? (Answer to the nearest dollar)

A loan is being amortized with 20 annual payments of principal and interest.The principal repaid in the 13^th payment is $801.45 and the interest portion of the 13^th payment is $698.55.What is the effective annual rate of interest,j₁ being charged on this loan?

A house is purchased with a down payment of $25,000 with the remaining $175,000 financed through a mortgage at j₁₂ = 9% with monthly payments of $1500 for as long as necessary.What is the seller's equity after 15 years (180 payments)?

A loan of $200,000 can be amortized over 10 years at j₁ = 13% (option 1).Alternatively,the money can be borrowed at j₁ = y%,with interest paid at the end of each year and the original loan repaid with one lump sum at the end of 10 years (option 2).For option 2,a sinking fund can be set up earning j₁ = 9%.What is the value of y such that the annual expense under the two options is the same?

A loan is being repaid over 8 years with 32 quarterly payments of $362.19 at j₄ = 8%.If the total amount of interest paid over the life of the loan is $3090.08,what is the outstanding balance of the loan immediately after the 18^th payment using the sum-of-digits method?

A company has borrowed $A and has agreed to pay interest on the loan every 3-months at j₄ = 8% and pay back the $A in one lump sum at the end of 11 years.The company will make quarterly deposits in a sinking fund earning j₄ = 4% to accumulate to $A by the end of 11 years.If the book value of the loan after 5 years is $81,485,what is the value of A? (Answer to the nearest $100)

A loan at j₁₂ = 6%,is being repaid with monthly payments of $154.66 for 5 years using the sum of digits method.The total interest over the life of the loan is $1279.60.What is the outstanding balance of the loan after 2 years?

A corporation takes out a $100,000 loan to be repaid over 6-years with quarterly payments at j₄ = 10%.Under the amortization method,the outstanding balance of the loan after 4 years is $40,090.26.At this time the company refinances the loan,without penalty.The new loan rate is j₄ = 8% and the company makes an additional lump sum payment of $5000.What is the new quarterly payment,assuming the loan is still paid back in full after 6 years?

A loan is being repaid with level annual payments of $1040 on July 30^th of each year.The last $1040 loan payment is to be made on July 30,2015 and the interest portion of this final payment is $40.What is the principal portion of the payment made on July 30,2010?

A corporation takes out a $100,000 loan to be repaid over 6-years with quarterly payments at j₄ = 10%.The total interest to be paid on the loan over the 6 years is $34,190.77.Using the sum of digits method,the outstanding balance of the loan immediately after the 16^th payment is $40,627.40.How much of the 17^th payment goes towards interest using the sum of digits method?