Amount of Monthly Payment on Loan Assignment | Homework For You

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

Save Time On Research and Writing
Hire a Pro to Write You a 100% Plagiarism-Free Paper.
Get My Paper

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

(a) Calculate the amount of monthly payment.

(2 marks)Homework For You

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

Save Time On Research and Writing
Hire a Pro to Write You a 100% Plagiarism-Free Paper.
Get My Paper

(6 marks)

(c) Tedros plans to pay off the loan immediately after making the 60th payment. What should the

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

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with Homework Writing Services
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
excellent job
Customer 456821, June 12th, 2022
English 101
Thank you!
Customer 454351, May 9th, 2020
Very good job.
Customer 456821, April 8th, 2022
Customer 463813, April 12th, 2023
Business and administrative studies
Good work.
Customer 458115, June 9th, 2022
Business and administrative studies
Customer 453375, April 30th, 2022
Religious studies
Thank you very much. I am going to keep using this service.
Customer 454195, March 30th, 2020
ASCI 491: Operational Applications in Aeronautics
Excellent progression.
Customer 457731, April 21st, 2022
The writer did a phenomenal job with the Research Report #1: Data Breach Incident Analysis & Report. All expectations were met and exceeded! Thank you for delivering an amazing product and a HUGE thank you to the customer service department for sending me an email to let me know the paper was checked to quality assurance team to ensure the paper was within standards of the instructions.
Customer 452455, February 3rd, 2023
Customer 452441, April 12th, 2022
This paper was beautifully and exceeded my expectations! A HUGE thank you to the writer and to the Quality Assurance team for ensuring quality work is produced.
Customer 452455, April 13th, 2023
Excellent work. Looking forward to working with you in the future.
Customer 463467, November 2nd, 2022
Customer reviews in total
Current satisfaction rate
3 pages
Average paper length
Customers referred by a friend
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat