Bank of loans of similar quality carriers

Determine the present values  (PVs) if $5,000 is received in the future (i.e., at the end of each   indicated time period) in each of the following situations:

 

Don't use plagiarized sources. Get Your Custom Essay on
Bank of loans of similar quality carriers
Just from $10/Page
Order Essay

a)     5 percent for ten years

b)    7 percent for seven years

c)     9 percent for four years

 

2.  Assume you are planning to invest $5,000 each year for six years and will earn 10 percent   per year. Determine the future value (FV) of this annuity if your first $5,000 is invested at the end of the first year.

 

 

3.  Determine the present value (PV) now of an investment of $3,000 made one year from now and an additional $3,000 made two years from now if the annual discount rate is 4 percent.

 

4. What is the present value (PV) of a loan that calls for the payment of $500 per year for six years if the discount rate is 10 percent and the first payment will be made one year from now? How would your answer change if the $500 per year occurred for ten years?

 

 

5. Determine the annual payment on a $500,000, 12 percent, business loan from a commercial bank that is to be amortized over a five-year period.

 

6. Determinate the annual payment on a $15,000 loan that is to be amortized over a four-year period and carries a 1- percent interest rate. Prepare a loan amortization schedule for this loans

 

7. Assume a bank loan requires an interest payment of $85 per year and a principal payment of $1,000 at the end of the loan’s eight year life.

a) at what amount could this loans be sold for to another bank if loans of similar quality carried an 8.5 percent interest rate?

b) now, if the rates on other similar quality loans are 10 percent, what would be the PV of this loan?

c) what would be the PV of the loan of the interest rate is 8 percent on similar quality loans?

 

 

 

 

Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

We value our customers and so we ensure that what we do is 100% original..
With us you are guaranteed of quality work done by our qualified experts.Your information and everything that you do with us is kept completely confidential.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

The Product ordered is guaranteed to be original. Orders are checked by the most advanced anti-plagiarism software in the market to assure that the Product is 100% original. The Company has a zero tolerance policy for plagiarism.

Read more

Free-revision policy

The Free Revision policy is a courtesy service that the Company provides to help ensure Customer’s total satisfaction with the completed Order. To receive free revision the Company requires that the Customer provide the request within fourteen (14) days from the first completion date and within a period of thirty (30) days for dissertations.

Read more

Privacy policy

The Company is committed to protect the privacy of the Customer and it will never resell or share any of Customer’s personal information, including credit card data, with any third party. All the online transactions are processed through the secure and reliable online payment systems.

Read more

Fair-cooperation guarantee

By placing an order with us, you agree to the service we provide. We will endear to do all that it takes to deliver a comprehensive paper as per your requirements. We also count on your cooperation to ensure that we deliver on this mandate.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
error: Content is protected !!
Open chat
1
You can contact our live agent via WhatsApp! Via +1 817 953 0426

Feel free to ask questions, clarifications, or discounts available when placing an order.

Order your essay today and save 30% with the discount code STARS