Assume you have taken out a 25-year loan of $177,390 with an annual interest rate of 6.72%, compounded monthly. (a) Determine the payment amount (in dollars), to the nearest cent, on the given loan amount. $1222.25 (b) Determine the outstanding balance (in dollars), to the nearest dollar, after 17 years. $

Assume you have taken out a 25-year loan of $177,390 with an annual interest rate of 6.72%, compounded monthly. (a) Determine the payment amount (in dollars), to the nearest cent, on the given loan amount. $1222.25 (b) Determine the outstanding balance (in dollars), to the nearest dollar, after 17 years. $

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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onsider the following loan. Complete parts (a)-(c) below. n individual borrowed $65,000 at an APR of 5%, which will be paid off with monthly payments of $442 for 19 years. ... a. Identify the amount borrowed, the annual interest rate, the number of payments per year, the loan term, and the payment amount. The amount borrowed is $ 65000, the annual interest rate is 5%, the number of payments per year is 12, the loan term is 19 years, and the payment amount is $ 442. b. How many total payments does the loan require? What is the total amount paid over the full term of the loan? There are 228 payments toward the loan and the total amount paid is $ 100776 c. Of the total amount paid, what percentage is paid toward the principal and what percentage is paid for interest? The percentage paid toward the principal is% and the percentage paid for interest is%. (Round to the nearest tenth as needed.)
Consider a loan of $2.5 million that is paid quarterly over a period of 10 years. Calculate the dollar amount of interest and loan principal repaid corresponding to each payment if the interest rate is 9% per year, compounded quarterly. What is the 5th Quarter Interest and also the 5th Quarter Principal Repayment respectively O a $157,274.15 and $232,276.07 O b. $97,158.12 and $95,032.24 O c. $46,919.62 and $32,752.85 O d. $52,601.74 and $42,841.70
A loan of $1500 is to be repaid by annual payments of $250 to commence at the end of the fifth year and to continue thereafter for as long as necessary. Find the amount of the final payment, if the final payment is to be larger than the regular payments. Assume i = 5%. Round your answer to two decimal places.
Find the payment necessary to amortize a 12% loan of $2300 compounded quarterly, with 12 quarterly payments. The payment size is $ (Round to the nearest cent.)
The interest rate on a $115,000 loan is 8.6% compounded semiannually. The monthly payments on the loan are $900. (Round your answers to 2 decimal places.) a. Calculate the interest component of Payment 200. Interest S b. Calculate the principal component of Payment 135. Principal c. Calculate the final payment. Final payment
Calculate the total amount of interest dollars you will pay the bank over the life of the loan. Round to the nearest dollar and assume end-of-month payments. Table 6.2 The Loan Amortization Schedule for a $5,000 Loan at 10% to Be Repaid in Four Years Year Amount Owed on the Principal at the Beginning of the Year (1) Interest Portion Annuity Payment (2) of the Annuity = (1) x 10% = (3) 1 $5,000.00 1577.35 500 2 (1) Amount Owed (ii) PMT (III) Interest on the Principal at the Beginning Portion of the 2nd year of the Year 2 3 4 Repayment of the Principal Portion of the Annuity = (2) (3) (4) 1077.35 (iv) Repayment of the Principal Portion of the 2nd year Outstanding Loan Balance at Year End, After the Annuity Payment = (1)-(4) = (5) 3922.65 (v) Outstanding Loan Balance at Year 2 End, after the Annuity Payment Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a 2000 b 6309 с 1309 d 500
Find the payment necessary to amortize a 12% loan of $2000 compounded quarterly, with 18 quarterly payments. The payment size is $ (Round to the nearest cent.)
The following is an amortization schedule for a loan of $5000 to be repaid over two years at 7% compounded semiannually (depicted below in the table). Find the value of A, B, C, and D.
Complete the first three lines of an amortization schedule for the following loan. Assume monthly payments. amount, $6000; rate, 9%; time, eighteen months Fill out the amortization schedule below, assume monthly payments and round all values to the nearest cent. Payment Amount of Interest Applied to Number Payment Payment Principal 2 3 $ $ $ Balance $6000 $ $
Give typing answer with explanation and conclusion a loan of 4415$ borrowed today is to be repaid in three equal installments due in one and a half years, four years, and five years, respectively. what is the size of the equal installments if money is worth 9.2% compounded monthly? The payments are each$?
Prepare an amortization schedule for a five year loan of $58,500. The interest rate is 6% per year and the loan cost for equal annual payments. How much interest is paid in the third year? how much total interest is paid over the life of the loan? Loan amount $ Interest rate Loan term Output area: 58,500 6% 5 Loan payment $13,887.69 Year Beginning balance 1 $ 58,500.00 Total payment Interest paid Principal paid Ending balance $ 13,887.69 $ 3,510.00 $ 10,377.69 $ 48,122.31 2 3 4 5 Total interest paid over life of loan
A loan is to be repaid by $1500 in one year and $2250 in four years. The borrower has asked to repay $1000 in 1.5 years and a final payment in three years. If money can earn 6% compounded quarterly, what is the size of the final payment? Select one: O a. 2735.18 O b. 2705.50 O C. 2725.50 O d. 2755.85 O e. 2715.50

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