You have taken out a 30-year loan of $55,000 with 6% interest (APR) compounded monthly and with monthly payments. Calculate the amount of your second principal payment. Round your final answer to one decimal place.
You have taken out a 30-year loan of $55,000 with 6% interest (APR) compounded monthly and with monthly payments. Calculate the amount of your second principal payment. Round your final answer to one decimal place.
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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Question
You have taken out a 30-year loan of $55,000 with 6% interest (APR) compounded monthly and with monthly payments. Calculate the amount of your second principal payment. Round your final answer to one decimal place.
Expert Solution
Introduction:
An amount or asset borrowed by an entity from an individual or financial institution is known as a loan. Loan consists of principal as well as interest amount to be repaid on a due date.
Calculation:
Firstly, calculating monthly payment (PMT):
Now, Future Value (FV):
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