Amount of Monthly Payment Assignment | Homework For You

Tedros borrowed $2 million and planned to repay the loan by making equal month-end payments over

Don't use plagiarized sources. Get Your Assignment on

Just from $13/Page

Order Now

a period of 10 years. The interest rate on the loan is 6%, compounded monthly.

(a) Calculate the amount of monthly payment.

(2 marks)

(b) Of the 60th payment, how much will be used to repay the interest and principal for the month?

(6 marks)

size of the lump-sum (pre-)payment be?

(2 marks)

(d) Immediately after the 60th repayment, the central bank increased the market interest rate

and the bank subsequently raised the loan’s interest rate to 8% p.a., compounded

monthly. If Tedros decides to keep the number of remaining payments unchanged,

what is the size of the new monthly repayments?

(3 marks)

(e) Calculate the total amount of principal repaid and interest paid in the first 60 monthly

payments. Assume that the relevant interest rate is still 6%, compounded monthly (that is,

not 8%).

[Hint: One make-sense way to think about this is by focusing on the relationships

between amount borrowed, total amount repaid to the bank and the amount still owed

to the bank after the 60th payment is made. You may think of the total amount of

principal repaid first].

(4 marks)

(f) Suppose that if the bank allows Tedros to only pay the first five years of interests at

t=60 in a single payment (with principal repayment only to be made at the end of Year

10). How much interests will Tedros has to pay at t=60? What explains the difference

in the total amount of interests paid in part (e) and here [part (f)]? Assume that the

relevant interest rate is still 6%, compounded monthly (that is, not 8%). Get Finance homework help today

Why Choose Our Assignment Writing Services

Quality Homework Papers

We aim at 100% customer satisfaction. As such, we never compromise on the quality of our assignment services and strive to maintain the highest standards of work for all our clients. Our writers craft each paper carefully to match the requirements on the instructions form while at the same time being surgical and objective while handling client work.

Professional Homework Help

We receive many applications from writers around the world daily. Nevertheless, we only choose the cream of the crop to tackle your “help with homework” requests. Hence, our homework helpers are highly-qualified individuals who adhere to our quality policy.

Affordable Homework Help Services

We maintain a fair pricing policy for all our homework help services. Our pricing system generates quotations based on the requirements of each paper. Hence regardless of the complexity or duration of a paper, our system determines the most accurate and pocket-friendly price for all our clients.

On-Time Assignment Delivery

At MyHomeworkWriters, we guarantee all students swift delivery of their assignments. We understand that time is an essential factor in the academic world. We, therefore, ensure that all assignments are delivered on or before the agreed deadline. This leaves room for editing to incase the client wants changes done to the work delivered by our writers.

100% Original Assignment Papers

We maintain a zero-plagiarism policy in all our papers. Our writers stick to the instructions to deliver plagiarism-free work. Other than that, they extensively research the work they are handling and are keen to avoid any chance of similarities with previously written papers. Our editors check every completed work to ascertain it’s at the set standards.

24/7 Customer Support

Our main objective is to assist you through every step of your academic journey. Thus, we completely understand that you might run into trouble once in a while when interacting with our system. If you do run into trouble, please get in touch with our support agents and they will immediately provide you with assistance. Feel free to contact us via the Chat window or email us.

How myhomeworkwriters works?

Follow these simple steps to get your homework done

1). Place your order

Fill in the order form and provide all details of your assignment.

2). Proceed with the payment

Choose the payment system that suits you most.

3). Track Progress

You will be able to track the progress of your paper from our system.

4). Receive the final file

Once your paper is ready, we will email it to you.

Calculate the price of your order

Type of paper needed:

Pages:

You will get a personal manager and a discount.

Academic level:

We'll send you the first draft for approval by at

Total price:

$0.00

Our Assignment Services

Myhomeworkwriters holds a reputation for providing high-quality assignment writing services. You only need to give us all the requirements for your “do my homework” order, and our writers will give you the best results.

Research Services

Our team is skilled and equipped in searching for information required to complete work handed over to them. Regardless of the complexity of the work, we are determined to get the job done. Extensive research when handling client requests makes it possible for us to be able to stick to the boundaries and guidelines set by the clients. Thus enabling us to keep the work original and plagiarism free.

Writing Services

We have highly qualified writers to assist you whenever you place in "help with my homework" order. Our essay writing service is designed to not only help students get good grades but also excel in their studies. Our writers are highly experienced and educated specialists and professionals who want to do more than creating a difference in the academic field.

Editing and Proofreading Services

Our editors have a keen eye when going through work. They can capture even the smallest of errors. This has been made possible by the fact that we have been in the academic field for more than 5 years now. Thus, they bring with them previous experience when going through work to be able to capture everything. These unique skills make it possible for us to deliver error-free work to our clients.

Rewriting Services

Our team has very experienced specialists and professionals. This gives us a competitive edge over our competitors. Whenever we receive work that needs to be redone, everyone gets involved. That’s inclusive of our editors. This collective involvement in doing work makes it possible for us to deliver high-quality work to all our clients. Other than that it makes it possible for us to adhere to our originality and plagiarism-free policies.