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4. A design studio received a loan of $5,500 at 4.30% compounded semi-annually to purchase a camera. If they settled the loan in 3 years by making quarterly payments, construct the amortization schedule for the loan and answer the following questions: a. What was the payment size? b. What was the size of the interest portion on the first payment? c. What was the balance of the loan at end of the first year? d. What was the size of the interest portion on the last payment?

4. A design studio received a loan of $5,500 at 4.30% compounded semi-annually to purchase a camera. If they settled the loan in 3 years by making quarterly payments, construct the amortization schedule for the loan and answer the following questions: a. What was the payment size? b. What was the size of the interest portion on the first payment? c. What was the balance of the loan at end of the first year? d. What was the size of the interest portion on the last payment?

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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4. A design studio received a loan of $5,500 at 4.30% compounded semi-annually to purchase a camera. If they settled the loan in 3 years by making quarterly payments, construct the amortization schedule for the loan and answer the following questions: a. What was the payment size? b. What was the size of the interest portion on the first payment? c. What was the balance of the loan at end of the first year? d. What was the size of the interest portion on the last payment?
Transcribed Image Text:4. A design studio received a loan of $5,500 at 4.30% compounded semi-annually to purchase a camera. If they settled the loan in 3 years by making quarterly payments, construct the amortization schedule for the loan and answer the following questions: a. What was the payment size? b. What was the size of the interest portion on the first payment? c. What was the balance of the loan at end of the first year? d. What was the size of the interest portion on the last payment?
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