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interest. Determine the simple yearly interest rate at which the money was invested. Give your answer
as a percentage, rounded to two decimal digits.
After five years John owes Tebogo R10 000,00. Calculate how much money John initially borrowed
Suppose that an amount in Kina, is invested in a private financial institution, with interest compounded continuously at 8% per year.
a). Write the equation in terms of P0 and 0.08 where P0 is the starting amount invested. And the final balance in the account is denoted with variable P
b). Suppose that K2000 is invested. What is the total amount in the account after 3years?
c). How many years will it take to have more then the invested amount.
A couple purchased a home and signed a mortgage contract for $600, 000 to be paid with half-yearly payments over a 25-year period. The interest rate applicable is j2 = 6.5% p.a. applicable for the first five years, with the condition that the interest rate will be increased by 10% every 5 years for the remaining term of the loan. Based on the given information, your group is required to use Excel software to: (a) Calculate the half-yearly payment required for each five-year interval [10 marks] (b) Calculate the loan outstanding (outstanding balance) at the beginning of each five year interval. [10 marks] (c) Prepare a loan amortization table for the final 12 half-years of the loan term. [10 marks]
. FV of $400 paid each 6 months for 5 years at a nominal rate of 12%
compounded semiannually
A man received a 9 months loan 5000$ from a bank of the proceed were 4500 what is discount rate
An investment is discounted for 28 days at a simple rate of discount of 4.5% per annum. Calculate the annual effective rate of interest.
1. Aini can cope with a maximum monthly loan management cost of EUR 1,600. What is the largest possible flat-rate loan that Aini can take? The loan is repaid monthly for 20 years and has an interest rate of 2.00%.
2. Jason intends to take out a 20-year flat-rate mortgage. The loan is tied to the six-month Euribor and the loan margin is agreed to be 1.20 percentage points. At the time of borrowing, the six-month Euribor is 0.204%. Jason estimates that his finances will last a maximum of 1,000 euros per month.
a) What maximum loan can he take if the reference rate does not rise during the loan period?
b) What is the maximum amount of a loan he can take if the reference rate rises to 5% after six months of payments?
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?
Question 17 to 20 are based on the following information: Mr and Mrs Motshabane bought a franchise for R1 000 000,00. They took a mortgage loan at 10,7% interest per year, compounded monthly, for a term of 20 years.
Question 17 What is size of the monthly payments
Question 18 What is the interest paid on the second month
Question 19 What is the outstanding principal (balance) on the third month
Question 20 What is the principal repaid during the fourth month
