Relion Insurance Solutions (RIS) borrowed from Farm Credit Services of America (FCSA) for their expansion that customizes cost estimates of insurance for farming equipment. RIS paid $300,000 for the loan to FCSA after 5 years at a simple interest rate of 10% per year. How much did RIS borrow from FCSA 5 years ago?
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- Goliath Banking Corporation (GBC) offers an "Income Investment Product" (IIP) for customers. The details for this product is as follows: Customers pay $984.31767830979 to buy an IIP. The IIP will pay out $37 at the end of each year for 12 years The IIP will pay out a further single payment of $1,000 after 12 years There are no further payments after this single payment at time 12 a. Calculate the return GBC promised to investors that buy this product, expressed an effective annual rate. Give your answer as a percentage to 4 decimal places.EnergyMax Engineering constructed a small office building for their firm 5 years ago. They financed it with a bank loan for $450,000 over 15 years at 6% interest with quarterly payments and compounding. The loan can be repaid at any time without penalty. The loan can be refinanced through an insurance firm for 4% over 20 years—still with quarterly compounding and payments. The new loan has a 5% loan initiation fee, which will be added to the new loan. (a) What is the balance due on the original mortgage (20 payments have been made in the last 5 years)? (b) How much will EnergyMax’s payments drop with the new loan? (c) How much longer will the proposed loan run?A private producer of crops in Bohol wants to purchase a heavyduty harvester that cost a whopping 1.6 million pesos in order to adapt to advanced farming technology . The company plans to loan in order to purchase the said machine. The bank has agreed and given the following terms to the farmer.Loan amount 1,600,000.00 Loan Type : END Balloon payment at the end 300,000.00 Annual Rate is: 3.72 % Years to pay Years Payment Method: Monthly First payment date 05/17 / 21 Instructions: 1. Compute the period rate2. Compute the payment every period 3. Compute how many numbers of periods in a year4. Compute the total number of periods5. Complete the amortization table simulating the client's payment until the last periodMake sure the balance of the last period is 300 000 (Balloon Payment)
- EnergyMax Engineering constructed a small office building for their firm 5 years ago. They financed it with a bank loan for $450,000 over 15 years at 6% interest with quarterly payments and compound ing. The loan can be repaid at any time without penalty. The loan can be refinanced through an insur ance firm for 4% over 20 years—still with quarterly compounding and payments. The new loan has a 5% loan initiation fee, which will be added to the new loan. (a) What is the balance due on the original mort gage (20 payments have been made in the last 5 years)? (b) How much will Energy Max's payments drop with the new loan? (c) How much longer will the proposed loan run? ?plz do fastEnergyMax Engineering constructed a small office building for their firm 5 years ago. They financed it with a bank loan for $450,000 over 15 years at 6% interest with quarterly payments and compound ing. The loan can be repaid at any time without penalty. The loan can be refinanced through an insur ance firm for 4% over 20 years—still with quarterly compounding and payments. The new loan has a 5% loan initiation fee, which will be added to the new loan. (a) What is the balance due on the original mort gage (20 payments have been made in the last 5 years)? (b) How much will Energy Max's payments drop with the new loan? (c) How much longer will the proposed loan run? I need urgent this answerGoliath Banking Corporation (GBC) offers an "Income Investment Product" (IIP) for customers. The details for this product is as follows: Customers pay $941.29024136888 to buy an IIP. The IIP will pay out $49 at the end of each year for 13 years The IIP will pay out a further single payment of $1,000 after 13 years There are no further payments after this single payment at time 13. (a) Calculate the return GBC promised to investors that buy this product, expressed an effective annual rate. Give your answer as a percentage to 4 decimal places. (b) If instead GBC were to offer investors an effective annual return of 3.4571%, what price should they charge for this product? Give your answer in dollars, to the nearest cent. (c) Suppose that GBC decides to delay the final single payment of $1,000 by one year (assume this is permitted in the fine print of the IIP). Assuming no other changes are made, which ONE of the following statements is true for investors that have already purchased…
- Goliath Banking Corporation (GBC) offers an "Income Investment Product" (IIP) for customers. The details for this product is as follows: Customers pay $908.08904319366 to buy an IIP. The IIP will pay out $44 at the end of each year for 9 years The IIP will pay out a further single payment of $1,000 after 9 years There are no further payments after this single payment at time 9. (b) If instead GBC were to offer investors an effective annual return of 4.9376%, what price should they charge for this product? Give your answer in dollars, to the nearest cent. (c) Suppose that GBC decides to delay the final single payment of $1,000 by one year (assume this is permitted in the fine print of the IIP). Assuming no other changes are made, which ONE of the following statements is true for investors that have already purchased the IIP? a. The investors will now receive a lower return on their investment since their payments have been delayed. b. Investors will pay a lower price for this…EnergyMax Engineering constructed a small office building for their firm 5 years ago. They financed it with a bank loan for $450,000 over 15 years at 6% interest with quarterly payments and compound- ing. The loan can be repaid at any time without penalty. The loan can be refinanced through an insur- ance firm for 4% over 20 years-still with quarterly compounding and payments. The new loan has a 5% loan initiation fee, which will be added to the new loan. (a) What is the balance due on the original mort- gage (20 payments have been made in the last 5 years)? (b) How much will EnergyMax's payments drop with the new loan? (c) How much longer will the proposed loan run?Cooley Landscaping needs to borrow $25000 for a new front-end dirt loader. The bank is willing to loan the money at 8% interest for the next 6 years with annual, semiannual, quarterly, monthly or payments. What are the different payments that Cooley Landscaping could choose for these different payment plans?
- A local moving service recently purchased a van be securing a loanwith semannual payments of $3200 per semiannual period for 7 years at 12% per year compuonded semiannually. What ws the purchase price of this van?(round your answer to the nearest cent)Aerotron Electronics has just bought a used delivery truck for $15,000. The small business paid $1,000 down and financed the rest, with the agreement to pay nothing for the entire first year and then to pay $576.83 at the end of each month over years 2, 3, and 4 (first payment is in 13th month). a. What nominal interest rate is Aerotron paying on the loan? % b. What effective interest rate are they paying? % Round your answer to 4 decimal places for a and b. The tolerance is ± 0.0005. c. How much of the 14th month's payment is interest? How much is principal? payment interest = $ , and principal = $ d. How much of the 18th month's payment is interest? How much is principal? payment interest = $ , and principal = $ e. How much of the 22nd month's payment is interest? How much is principal? payment interest = $ , and principal = $ Round your answers to the nearest whole dollar for c-e. The tolerance is ± 5.One year ago, JK Mfg. deposited $20,500 in an investment account for the purpose of buying new equipment four years from today. Today, it is adding another $15,000 to this account. The company plans on making a final deposit of $10,000 to the account one year from today. How much will be available when it is ready to buy the equipment, assuming the account pays 3.5 interest?