Consider the following loan. Complete parts (a)-(c) below. An 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 loan term is years, and the annual interest rate is %, the number of payments per year is The amount borrowed is $ the payment amount is $

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
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Consider the following loan. Complete parts (a)-(c) below.
An 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 $
%, the number of payments per year is
the loan term is years, and
the payment amount is $
the annual interest rate is
"
Transcribed Image Text:K Consider the following loan. Complete parts (a)-(c) below. An 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 $ %, the number of payments per year is the loan term is years, and the payment amount is $ the annual interest rate is "
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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.)
Transcribed Image Text: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.)
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