A $28,400 loan at 8% compounded quarterly is to be repaid by equal quarterly payments over a seven-year ter . What will be the principal component of the sixth payment? (Round your answer to the nearest cent.) rincipal $

Q: A demand loan of $3000.00 is repaid by payments of $1500.00 after two years, $1500.00 after four…

A: A. Amount outstanding at the end of 2nd Year           $ 3000 (1+0.08/2)2x2 $3509.57568 B.…

Q: To borrow $1,200, you are offered an add-on interest loan at 9 percent. Two loan payments are to be…

A: Borrowed Amount = $1,200 Interest Rate = 9% Time Period = 1 Years

Q: A $5000 loan at 10% compounded annually is to be repaid by two payments three and five years from…

A: Loan amount = $5000First payment = $3000Required rate of return =9%To find: The purchase price for…

Q: 7. AP150,000 loan is to be paid as follows: P 10,000/month Final payment If the annual rate of…

A: Loan amount = P 150,000 First 10 monthly payment = P 10000 Annual interest rate = 12% Monthly…

Q: Calculate the present value of a loan that could be cleared by payments of $3,250 at the end of…

A: Present value of loan ca be calculated by using loan amortisation formula. Present value of loan(P)=…

Q: A 161,781 loan is being repaid with monthly payments for 8 years. The first payment is 800 and is…

A: A loan is a contract between a lender and a borrower where the lender forwards a fixed amount to the…

Q: What size monthly payments should occur when $10.000 is borrowed at 6% per year compounded monthly…

A: When the interest on interest is charged on monthly basis, it is known as monthly compounding. It…

Q: A P15,000 loan at 6% compounded semi- annually is to be amortized in 6 months. Find the monthly…

A: monthly rate = (1 + 6%/12)1/6  -1 = 0.49386% N = 6 FV = 0 PV = 15,000 use PMT function in Excel…

Q: Acar loan of $18,290 is to be repaid by equal monthly payments for three years. The interest rate is…

A: Lets understand the basics. When asset is purchased on loan then asset is needed to record at cost.…

Q: A demand loan of $3000.00 is repaid by payments of $1000.00 after two years, $1000.00 after four…

A: Loans are paid by payments and these payments carry the payment for interest and payment for loan…

Q: £10,000 loan at 6% simple interest. The entire loan is to be repaid in one lump sum after five…

A: The formula to determine the annual interest amount is as follows: Interest = Loan Amount * interest…

Q: Determine the amount due on the compound interest loan. (Round your answers to the nearest cent.)…

A: We need to use compound interest formula to calculate the amount due A=P(1+i)n Where A= amount…

Q: Compute the monthly payment on a $65,000 loan if the principal and interest are to be repaid in 84…

A: Monthly payments could be computed by using the present value formula. Present value of all the…

Q: A loan of P12, 500 is to be repaid with equal quarterly payments for one year with an interest of 6%…

A: Amortization table is a schedule which shows periodic lease or loan payments. The periodic payment…

Q: A demand loan for $5409 08 with interest at 4.2% compounded annualy is repaid after 6 years, 8…

A: Compound interest also called interest on interest. It is the addition of interest in the principal…

Q: a. Calculate the interest component of Payment 10. Interest $. 1187.03 b. Calculate the principal…

A: Loan amortization refers to a schedule which is prepared to shows the periodic loan payments, amount…

Q: A 5-year $10,000 loan with a 15-year amortization period is being offered at the rate of 10%…

A: When the borrower avails a loan from the lender, he has to pay a rate of interest on the borrowed…

Q: Find the payment necessary to amortize a 8% loan of $2400 compounded quarterly, with 10 quarterly…

A: Payment size (Annuity) = Loan Amount / PVA of $1

Q: Find the payment necessary to amortize a 12% loan of $1300 compounded quarterly, with 8 quarterly…

A: Amortization is the process of paying off a debt, such as a loan or mortgage, in regular…

Q: A loan of $105,501.20 is to be amortized over a 10-year term at 6% interest compounded monthly with…

A: When the lender lends a loan to the borrower, he charges a rate of interest on the borrowed amount.…

Q: A demand loan for $7745.46 with interest at 7.4% compounded quarterly is repaid after 6 years, 2…

A: Loan amount (P) = $ 7745.46 Interest rate = 7.4% Quarterly interest rate (r) = 7.4%/4 = 1.85% Period…

Q: A loan of 10.000 TL is repaid in equal annual installments at 10% effective interest rate per year.…

A: Given: Loan amount= 10000 TL Annual effective rate =10% Interest amount in third payment = 868.24…

Q: A loan of ​$3137 borrowed today is to be repaid in three equal installments due in one-and-a-half…

A: Investment is an excellent way to build wealth over the long term. By investing in assets like…

Q: Find the semi-annual payment at the end of six months, the first payment is due at the end of 7.5…

A: An annuity is a type of security where periodic payments are made over a period of time. Deferred…

Q: A 10-year $14,600,000 long-term loan from the American Bank. The loan has the following terms: a.…

A: A. Normally companies debt to equity ratio should be either equal or below 2:1 B. Due to high raise…

Q: An annuity providing a rate of return of 6.4% compounded monthly was purchased for $61,000. The…

A: An Annuity is a payment made regularly for a fixed period of time at a fixed interest rate. This is…

Q: what is the monthly payment for a loan of 140,000 30 year fixed rate of Apr of 7.5% what is the…

A: Using excel PMT function

Q: A $45,000 loan at 8.7% compounded semiannually is to be repaid by semiannual payments of $3,300…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: A loan of P8,000 will be amortized by payments at the end of each quarter for 8 years and 9 months.…

A: 1. Calculate the amount of periodic payments by using the EXCEL PMT formula. Note that there are 35…

Q: A loan of P 58,000 with interest at 20% compounded quarterly, will be paid by equal periodic…

A: Quarterly Compounding: It is  interest amount that  is earned quarterly on an account. It mean…

Q: Select the correct answer and explain A loan of $ 45,000 is obtained at 17.5% per annum, to be paid…

A: Total Loan amount is $45,000 Rate of interest is 17.5% Time period is 2.5 years or 5 semesmter…

Q: A loan of $401,000 at 5.02% compounded quarterly was to be settled with month-end payments of…

A: Future worth is computed by multiplying the existing value with a given interest rate.

Q: 160000 TL loan is being repaid by installments of 2250 TL at the end of each month for as long as…

A: Loan financing refers to the arrangement of a loan repayment system. It involves the repayment of a…

Q: A demand loan of $5000.00 is repaid by payments of $2500.00 after two years, $2500.00 after four…

A: A loan refers to a contract between two parties where money is forwarded by one party to the other…

Q: A loan of $3000 is to be repaid by level monthly installments in arrears over a period of 3 years.…

A: Annual percentage rate (APR) refers to the annual cost of funds borrowed.

Q: find the outstanding balance at the end of 2 years.

A: Loan is the amount borrowed bank in exchange for principal and interest to be paid either at the end…

Q: Determine the amount of the payment required at the end of each quarter to repay a six-year loan of…

A: Time Value of Money :— According to this concept, value of money in present day is more than the…

Q: A $14,000 loan is to be amortized for 10 years with quarterly payments of $467.98. If the interest…

A: Given information: Loan amount $14,000 Number of years 10 Paying Quarterly $467.98 Interest rate is…

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.