A loan is partially settled by making payments of $3, 500 at the end of every six months for five years. If there is an outstanding balance of $12, 000 left on the loan after five years, what was the original loan amount? The interest rate charged was 5.78% compounded daily. Full solutions should be shown on separate sheets of paper. Submit your solutions. Original Loan Amount Round your answer to two decimal places.

A loan is partially settled by making payments of $3, 500 at the end of every six months for five years. If there is an outstanding balance of $12, 000 left on the loan after five years, what was the original loan amount? The interest rate charged was 5.78% compounded daily. Full solutions should be shown on separate sheets of paper. Submit your solutions. Original Loan Amount Round your answer to two decimal places.

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

Problem 1PS

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(b) A home loan of $300,000 is to be repaid by equal monthly instalments (at the end of each month) of $1753.77 for 25 years (300 months) with an interest rate of 5% p.a. compounded monthly. The following table shows three rows from the amortisation schedule. Compute the missing entries in the last row of the table (Month 150). Give your answers rounded to two decimal places. Month Monthly Payment Principal Repayment Outstanding Balance Interest Payment 300000 149 1753.77 196254.03 150 1753.77 (c) How much money must be deposited now to provide a perpetuity with installed? Download Now
Prepare an amortization schedule for a three-year loan of $117,000. The interest rate is 8 percent per year, and the loan calls for equal annual payments. How much total interest is paid over the life of the loan? Note: Leave no cells blank. Enter '0' where necessary. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Year 1 2 3 $ Beginning Balance 117,000.00 Total Payment Total interest Interest Payment Principal Payment Ending Balance
Find the monthly payment and estimate the remaining balance. Assume interest is on the unpaid balance. 5-year computer loan for $2770 at 6.7%; remaining balance after 2 years. The monthly payment is (Round to the nearest cent as needed
Find the monthly payment and estimate the remaining balance. Assume interest is on the unpaid balance. 4-year computer loan for $3106 at 5.7%; remaining balance after 2 years. The monthly payment is $. (Round to the nearest cent as needed.) The remaining balance is $. (Round to the nearest dollar as needed.)
The simple interest charged on a 5-month loan of $51,000 is $356. Find the simple interest rate. (Round your answer to one decimal place.)
A company borrows $159,600 from a bank. The interest rate on the loan is 6 percent compounded semiannualy. The company agrees to repay the loan in equal semiannualy installments over the next five years. The first payment is to be made six months from now. (Use factor table in Appendix B for calculation) Required 1: What is the amount of each semiannual payment? $ Required 2: In the first payment, what is the amount of interest cancelled? $ Required 3: In the fifth payment, what is the amount of loan paid net of interest? $ Required 4: In the last payment, what is the amount of interest cancelled? $ Required 5: Assume the debt contract has the option to make one extraordinary payment of up to 20% of the principal. If the company decides to exercise the right and make the extra payment together with the 8th payment, how much it must pay in dollars at the 9th payment to pay off the loan? $
A car loan of $37,412.98 is to be repaid with end-of-month payments of $725.06. If interest is 5% compounded monthly,how long is the term of the loan? State your answer in years and months (from 0 to 11 months).
A company borrows $159,300 from a bank. The interest rate on the loan is 6 percent compounded semiannualy. The company agrees to repay the loan in equal semiannualy installments over the next five years. The first payment is to be made six months from now. (Use factor table in Appendix B for calculation) Required 1: What is the amount of each semiannual payment? $ Required 2: In the first payment, what is the amount of interest cancelled? $ Required 3: In the fifth payment, what is the amount of loan paid net of interest? $ Required 4: In the last payment, what is the amount of interest cancelled? $ Required 5: Assume the debt contract has the option to make one extraordinary payment of up to 20% of the principal. If the company decides to exercise the right and make the extra payment together with the 8th payment, how much it must pay in dollars at the 9th payment to pay off the loan? $
Create the amortization schedule for a loan of $5,600, paid monthly over two years using an APR of 8 percent. Enter the data for the first three months. Note: Round your answers to 2 decimal places. Month 1 2 3 Beginning Balance Total Payment Interest Paid Principal Paid Ending Balance
A $23,970 loan is to be settled by making payments of $6,999 at the end of every six months. The interest is 7.58% compounded monthly. a) Find the number of payments in the term. N = b) Fill in the missing values of the amortization schedule below. Round off your answers to two decimal places. Enter a positive value for all answers. Payment Number 0 1 2 3 4 Payment Amount ($) PMT FA A A A Interest Portion ($) INT FA A $ Principal Portion ($) PRN $ A $ Loan Balance ($) BAL A A $23,970
What payment is required at the end of each year for 8 years to repay a loan of $2,580.00 at 5% compounded annually? The payment is S (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

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