A bank agrees to lend 10,000 now and X three years from now in exchange for a single repayment of 75,000 at the end of 10 years. The bank charges interest at an annual effective rate of 6% for the first 5 years and at a force of interest

Calculate X

• 23,500
• 24,000
• 24,500
• 25,000
• 25,500

Tim takes out an n-year loan with equal annual payments at the end of each year. The interest portion of the payment at time (n − 1) is equal to 0.5250 of the interest portion of the payment at time (n − 3) and is also equal to 0.1427 of the interest portion of the first payment.

Calculate n.

• 18
• 20
• 22
• 24
• 26

On January 1, 2003 Mike took out a 30-year mortgage loan in the amount of 200,000 at an annual nominal interest rate of 6% compounded monthly. The loan was to be repaid by level end-of-month payments with the first payment on January 31, 2003. Mike repaid an extra 10,000 in addition to the regular monthly payment on each December 31 in the years 2003 through 2007.

Determine the date on which Mike will make his last payment (which is a drop payment).

• July 31, 2013
• November 30, 2020
• December 31, 2020
• December 31, 2021
• January 31, 2022

A 5-year loan of 500,000 with an annual effective discount rate of 8% is to be repaid by level end-of-year payments.

If the first four payments had been rounded up to the next multiple of 1,000, the final payment would be X.

Calculate X.

• 103,500
• 111,700
• 115,200
• 125,200
• 127,500

A loan of X is repaid with level annual payments at the end of each year for 10 years.

You are given:

• The interest paid in the first year is 3600; and
• The principal repaid in the 6th year is 4871

Calculate X.

• 44,000
• 45,250
• 46,500
• 48,000
• 50,000

Jennifer establishes an investment account to pay for college expenses for her daughter. She plans to invest X at the beginning of each month for the next 21 years. Beginning at the end of the 18th year, she will withdraw 20,000 annually. The final withdrawal at the end of the 21st year will exhaust the account. She anticipates earning an annual effective yield of 8% on the investment.

Calculate X.

• 137.90
• 142.80
• 146.40
• 150.60
• 154.30

A borrower took out a loan of 100,000 and promised to repay it with a payment at the end of each year for 30 years. The amount of each of the first ten payments equals the amount of interest due. The amount of each of the next ten payments equals 150% of the amount of interest due. The amount of each of the last ten payments is X. The lender charges interest at an annual effective rate of 10%.

Calculate X.

• 3,204
• 5,675
• 7,073
• 9,744
• 11,746

A loan of 20,000 is repaid by a payment of X at the end of each year for 10 years. The loan has an annual effective interest rate of 11% for the first five years and 12% thereafter.

Calculate X.

• 2739.5
• 3078.5
• 3427.5
• 3467.5
• 3484.5

A 16-year loan of L is repaid with a payment at the end of each year. During the first eight years, the payment is 100. During the final eight years, the payment is 300. Interest is charged on the loan at an annual effective rate of i, such that [math]1/(1+i)^8 \gt 0.3.[/math]

After the first payment of 100 is made, the outstanding principal is L + 25.

Calculate the outstanding balance on the loan immediately after the eighth annual payment of 100 has been made.

• 1660
• 1760
• 1870
• 1970
• 2080

An entrepreneur takes out a business loan for 60,000 with a nominal annual interest rate compounded monthly. The loan is scheduled to be paid off with level monthly payments, plus a final drop payment. All payments will be made at the end of the month. The principal portion of the payment is 1,400 for the first month and 1,414 for the second month.

Calculate the drop payment.

• 780
• 788
• 1183
• 1676
• 1692