Answer to Question #205931 in Financial Math for Arvin Shopon

Question

1. The interest rate on the straight-line loan is 3.00%. The loan amounts to €12,000 and has a term of six years. Repayments are made annually.

a) What is the loan repayment?

b) What is the first installment?

c) What is the final installment?

2. The reference rate for a flat-rate mortgage of €150,000 is 0.20% for the entire loan period and the interest margin is 1.10 percentage points. The term of the loan is 20 years and the loan is repaid monthly.

a) What is the interest rate on the loan?

b) How much loan is repaid per month?

c) What is the first installment of the loan? What about the last installment?

3. Rami takes out a flat-rate loan of EUR 7 500 for a period of three years. The interest rate on the loan is 3.00%.

a) How much interest does Rami pay to the bank in total if he repays the loan once a month?

b) How much interest does Rami pay to the bank in total if he repays the loan once every four months?

Answer 1

Dear Arvin Shopon, your question requires a lot of work, which neither of our experts is ready to perform for free. We advise you to convert it to a fully qualified order and we will try to help you. Please click the link below to proceed: Submit order