Kyle received a loan of $8,000 at 4.32% compounded semi-annually from a credit union to use as working capital for his business. He had to make semi-annual payments for a period of 4 years to settle the loan. a. Calculate the size of his payments. Round to the nearest cent b. What was the total interest paid during the period? Round to the nearest cent c. What was the interest portion of payment number 3?

Kyle received a loan of $8,000 at 4.32% compounded semi-annually from a credit union to use as working capital for his business. He had to make semi-annual payments for a period of 4 years to settle the loan. a. Calculate the size of his payments. Round to the nearest cent b. What was the total interest paid during the period? Round to the nearest cent c. What was the interest portion of payment number 3?

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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Similar questions

Luis paid off a loan by making a payment of $4,050, which included simple interest of 3% p.a. If he obtained the loan 6 months ago, calculate the amount borrowed and the amount of interest paid on this loan. Amount borrowed: Round to the nearest cent Amount of interest paid: Round to the nearest cent
David held a loan of $2,400 for 6 months and was charged interest of $132.00. What was the annual simple interest rate on this loan?
Devin received a 15 year loan of $305,000 to purchase a house. The interest rate on the loan was 4.10% compounded semi-annually. a. What is the size of the monthly loan payment? Round to the nearest cent b. What is the balance of the loan at the end of year 4? Round to the nearest cent
Brett purchased a machine for $22,500 for his company. He paid 5.00% of this amount as a down payment and financed the rest at 4.72% compounded quarterly. He paid $1,125 at the end of every quarter to settle the loan. a. What was the principal portion of payment number 4? Round to the nearest cent b. What was the interest portion of payment number 4?
Corey received a $36,750 loan from a bank that was charging interest at 3.50% compounded semi-annually. a. How much does he need to pay at the end of every 6 months to settle the loan in 3 years? b. What was the amount of interest charged on the loan over the 3-year period?
Brody borrowed from a bank at 5.06% compounded monthly; he settled the loan by repaying $4,460 at the end of every month for 2 years. a) What was the amount of loan received? $ b) What was the amount of interest charged?
Timothy received a $39,550 loan from a bank that was charging interest at 3.75% compounded semi-annually. a. How much does she need to pay at the end of every 6 months to settle the loan in 3 years? Round to the nearest cent b. What was the amount of interest charged on the loan over the 3-year period? Round to the nearest cent
Phillip purchased a machine for $20,000 for his company. He paid 5.00% of this amount as a down payment and financed the rest at 7.82% compounded quarterly. He paid $1,125 at the end of every quarter to settle the loan. a. What was the principal portion of payment number 4? b. What was the interest portion of payment number 4?
Juan took out a $20,000 loan for 146 days and was charged simple interest.The total interest he paid on the loan was $488.As a percentage, what was the annual interest rate of Juan's loan?Assume that there are 365 days in a year, and do not round any intermediate computations.
c. By how much will the amortization period shorten if Shawn made an extra payment of $54,000 at the end of the year 3? years E months Express the answer in years and months, rounded to the next month
Vincent received a loan of $28,000 at 4.25% compounded monthly. She had to make payments at the end of every month for a period of 5 years to settle the loan. a. Calculate the size of payments. Round to the nearest cent b. Complete the partial amortization schedule, rounding the answers to the nearest cent. Payment Number Payment K 0 1 2 0 0.00 0 0 Total :: :: $0.00 $0.00 $0.00 $0.00 $0.00 Interest Portion Principal Portion $0.00 $0.00 :: :: $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Principal Balance $28,000.00 $0.00 $0.00 :: $0.00 $0.00 0.00
Jeffrey received a $32,950 loan from a bank that was charging interest at 5.75% compounded semi-annually. a. How much does she need to pay at the end of every 6 months to settle the loan in 6 years? Round to the nearest cent b. What was the amount of interest charged on the loan over the 6-year period? Round to the nearest cent

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