1. Leo's Auto Repair Inc. borrowed $5500 to be repaid by end-of-month payments over 4 years. Interest on the loan is 9% compounded monthly. a)What is the size of the periodic payment? b)What is the outstanding principle after the 13th payment? c)What is the interest paid in the 14th payment?

1. Leo's Auto Repair Inc. borrowed $5500 to be repaid by end-of-month payments over 4 years. Interest on the loan is 9% compounded monthly. a)What is the size of the periodic payment? b)What is the outstanding principle after the 13th payment? c)What is the interest paid in the 14th payment?

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

See similar textbooks

Similar questions

A mortgage loan having a face value of \$ \\$ 265,000 \$ is arranged by a mortgage broker. From this face value, the broker deducted a fee of \$ \\$ 4,000 \$. The mortgage is written at a contract rate of \$ 3.2 \\% \$ compounded semiannually for a twenty-five year term, with monthly payments. What is the annual cost of borrowing, including the brokerage fee, expressed as an effective interest rate? \$ 3.00 \\% \$ \$ 3.37 \\% \$ \$ 3.73 \\% \$ \$ 4.15 \\% \$ \$ 4.09 \\% \$
Suppose Shen borrows $6000 at an interest rate of 11% compounded each year.Assume that no payments are made on the loan. Follow the instructions below. Do not do any rounding. (a) Find the amount owed at the end of 1 year. $ (b) Find the amount owed at the end of 2 years
Statue Builders, Inc. took out a loan for $251375 that has to be repaid in 8 equal annual installments. The APR on the loan is 6.33 percent. How much of the second payment is interest?
Acme Industries Ltd. borrowed $50,000 and amortized the loan over 10 years at a rate of j1=8.00%. They will make monthly payments on the loan. a) Calculate the monthly loan payment rounded UP to the next cent: b) What is the balance owing on the loan after 3 years?
Halep Inc. borrowed $34,059 from Davis Bank and signed a 2-year note payable stating the interest rate was 8% compounded annually. Using the Present Value of an Annuity of 1 TABLE4, calculate the factor. Next, determine the annual payment amount. Then, determine the interest portion of the payment for year 1. Finally, determine the principal portion of the payment for year 1. Round to the nearest penny, two decimal places.
Suppose that a purchase is made with a credit of $27,000 that is settled with 9 monthly installments with charges of 12% simple annual on unpaid balances. Find the size of each payment assuming they are equal, and the interest
a car loan of 25,293.25 is to be repaid with end-of-month payments of 554.68. If interest is 7% compounded monthly how long is the term of the loan? State your answer in years and months (from 0 to 11 months).
Carry out the amortization table of an automobile loan that is canceled with 36 monthly payments of $ 5,750, at an interest rate of 25.20% per annum, compounded by months, to. Make the amortization table for this case that contains: payment, interest, payment to capital and unpaid balance. b. What is the unpaid balance after making payment number 15? c. What is the unpaid balance after making payment number 30?
Suppose you borrow $14,000. The interest rate is 11%, and it requires 4 equal end-of-year payments. Set up an amortization schedule that shows the annual payments, interest payments, principal repayments, and beginning and ending loan balances. Round your answers to the nearest cent. If your answer is zero, enter "0". Beginning Repayment Ending Year Balance Payment Interest of Principal Balance 1 $ fill in the blank 60 $ fill in the blank 61 $ fill in the blank 62 $ fill in the blank 63 $ fill in the blank 64 2 $ fill in the blank 65 $ fill in the blank 66 $ fill in the blank 67 $ fill in the blank 68 $ fill in the blank 69 3 $ fill in the blank 70 $ fill in the blank 71 $ fill in the blank 72 $ fill in the blank 73 $ fill in the blank 74 4 $ fill in the blank 75 $ fill in the blank 76 $ fill in the blank 77 $ fill in the blank 78 $ fill in the blank 79
You borrowed some money at 8 percent per annum. You repay the loan by making three annual payments of $163 (first payment made at t = 1), followed by five annual payments of $452, followed by four annual payments of $709. How much did you borrow? Round your answer to 2 decimal places: record your answer without commas and without a dollar sign. Your Answer: Answer
A borrower had a loan of $7600 at 6.4% compounded semiannually, with 14 semiannual payments. Suppose the borrower paid off the loan after 2 years. Calculate the amount needed to pay off the loan. The amount needed to pay off this loan after 2 years is (Round to the nearest cent as needed.)
ou were paying your fully amortising loan at 8.2% per annum for 12 years. The current monthly payment is $1,492 per month. What is the remaining loan balance at the end of year 2? Please rounded your answer to two decimal points (e.g. 8000.158 is rounded to 8000.16)

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS