he previous attempt.The interest rate for the first five years of a $28,000 mortgage loan was 3.35% compounded semiannually. The monthly paymentscomputed for a 10-year amortization were rounded to the next higher $10. (Do not round Intermedlate calculations and round yourfinal answers to 2 decimal places.)tsa. Calculate the principal balance at the end of the first term.Principal balance$ 14870.07b. Upon renewal at 5.85% compounded semiannually, monthly payments were calculated for a five-year amortization and againrounded up to the next $10. What will be the amount of the last payment?eBookFinai payment83.45PrintMcGrawHillof 9< PrevNetcornect

Meaning of mortgage loan:- It is a loan that is secured and helps to avail the funds where the…

Answered: The interest rate for the first five…

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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Certain Concrete Company deposits $2,000 at the end of each quarter into an account paying 11% interest compounded quarterly. What is the value of the account at the end of 7 1/2 1 2 years? (a) State the type. A. present valueB. ordinary annuity C. sinking fund D. amortization E. none of these (b) Answer the question. (Round your answer to the nearest cent.)
Payments of $1800 and $2400 were made on a $10,000 variable-rate loan 18 and 30 months after the date of the loan. The interest rate was 11.5% compounded semiannually for the first two years and 10.74% compounded monthly thereafter. What amount was owed on the loan after three years? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Amount owed after 3 years
(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
The interest rate on a $15,300 loan is 9.7% compounded semiannually. Semiannual payments will pay off the loan in nine years. (Do not round intermediate calculations. Round the PMT and final answers to 2 decimal places.) a. Calculate the interest component of Payment 12. $ b. Calculate the principal component of Payment 5. Principal c. Calculate the interest paid in Year 8. Interest paid d. How much do Payments 5 to 8 inclusive reduce the principal balance? Principal reduction Interest
The interest rate for the first four years of an $81,000 mortgage loan is 7.5% compounded semiannually. Monthly payments are calculated using a 20-year amortization. a. What will be the principal balance at the end of the four-year term? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Principal balance b. What will be the monthly payments if the loan is renewed at 4.9% compounded semiannually (and the original amortization period is continued)? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Payment $[ per month.
The interest rate for the first four years of a $33,000 mortgage loan was 3.85% compounded semiannually. The monthly payments computed for a 8-year amortization were rounded to the next higher $10. (Do not round intermediate calculations and round your final answers to 2 decimal places.) a. Calculate the principal balance at the end of the first term. Principal balance $ b. Upon renewal at 6.35% compounded semiannually, monthly payments were calculated for a four-year amortization and again rounded up to the next $10. What will be the amount of the last payment? Final payment $
A debt of $3051 with interest at 7.27% compounded monthly is to be repaid by equal payments at the end of each month for 5 years. What is the balance remaining (BAL) after the first payment? Payment Number 0 1 Answer: PMT INT PRN BAL 3051 ?
A mortgage for a condominium had a principal balance of $40,800 that had to be amortized over the remaining period of 6 years. The interest rate was fixed at 5.42% compounded semi-annually and payments were made monthly. a. Calculate the size of the payments, rounded up to the next whole number. O $664 O $1,295 O $657 O $672
A $120,000 mortgage was amortized over 10 years by monthly repayments. The interest rate on the mortgage was fixed at 4.30% compounded semi-annually for the entire period. a. Calculate the size of the payments rounded up to the next $100. $1,300.00 ✪ Round up to the next 100 b. Using the payment from part a., calculate the size of the final payment. $0.00 X Round to the nearest cent
A debt of $63 100.00 is repaid by payments of $4350.00 made at the end of every six months. Interest is 6.5% compounded quarterly.a) What is the number of payments needed to retire the debt?b) What is the cost of the debt for the first five years? c) What is the interest paid in the 11th payment?d) Construct a partial amortization schedule showing details of the first three payments, the last three payments, and totals.
A loan of $34, 200.00 at 5.50% compounded semi - annually is to be repaid with payments at the end of every 6 months. The loan was settled in 5 years. a. Calculate the size of the periodic payment. $3, 645.25 $4,537.24 $ 3,958.30 $4,341.38 b. Calculate the total interest paid. $5, 383.00 $39,583.00 $1,424.70 $9,341.30
A loan of $24,800.00 at 5.00% compounded semi-annually is to be repaid with payments at the end of every 6 months. The loan was settled in 5 years. a. Calculate the size of the periodic payment. $2,606.63 $3,211.71 $2,833.62 $3,111.33 b. Calculate the total interest paid. $3,536.20 $28,336.20 $702.58 $6,369.82

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