Lowlife Company defaulted on a $250,000 loan that was due on December 31, 2021. The bank...

PC HP WW interest W tun Ansunen Page: No 0 Annual payment wishers interests ouate is payments care este buen made. Present value of annuély = Annuiting amount x Present value of an annuity due of 1 1-(1 + foy á 50,000 - Annuity amount x2 104 250,000 - Ann ont X 3.16987 Annuly amount = .050,000 3.16987 = 488 67.58 g 8868 si Annuity amount = $ 78868 P: Annual payment when terest orate is 10%. and 4 paymentseerne to be made = $78868 @ Hanun payment we nt intervento create size and payments are to be made Present value of annuity = Annuity amount X Present value of an ...

Annuity due of $

250,000 = Annuity amount x Annuity amount x 1-07875 Page.nio @ a 250,000 - Annuity amount X 3.99241 Annuity amount. - 250,000 3.992741 i = 62614.11. A 62614 .: Annuity amount = $62614 It Annual payment when interest rate is 8% and to payments are to be made = $ 62614 © Number of annual payments would be required to repay the debt Present value of annuity = Annuity amount y Present value of an annuing 250,000 - $51351 Present value of an annuity of $1 Present value of an annuity of $1 350,000 ...51351 = 4.86845 rate = 1044 The banko interest

Page: No !-(1+10%) = 4186845 (ime No.of years) 107 * = 486845 X 107 1-(1)-9 = 0.486845 1 -0.486845 - (0,05 01513155 = 1,* apply In on both sides In (0-513155) = ln (0:1)" + 0.66177 = timin (1) 0.667177 0.095310) iin = 7 1 1. No. of years'- 7 payments ② Interest rate that bank will be charging a when 3 payments are made.

One 3 payments : Present value of annály = Annuity amount x Present value of an

Page: No 250,000 = $104081 x Prebent value of an annulyft 1 Present value of an annuvilis of $13 250,000 104087 = 2,4018369 - 2 2:40184 : No. of years - 3 payments from present value of an annuity of $1 table, at Present value of an annuély of $1 = 2.40184 No. of yearson = 3 years The interestrate is 12% :. Interest orate = 12%.