12. Bert and Ernie borrowed $6000 to buy Big Bird a new nest. They made quarterly paymentsof $558.68 for three years to pay back the loan. If they took out a 7% simple interest amor-tized loan, prepare an amortization schedule showing their first two payments.Payment No. Principle portionInterest portionTotal paymentBalance$60001 Simple Interest: I = PrtSimple Interest Future Value: FV =: P(1+rt)Compound Interest: FV = P(1+)ntAnnual Yield: APY(1+ 5)" – 1(1+)nt – 1Ordinary Annuity (payments due at the end of each period): FV,= pymt ·Annuity Due (payments due in the beginning of each period): FV4= pymt ·(1+5)nt – 1(1+5)r.nPresent Value of Annuity: P(1+)nt = FV (annuity)(1+ 5)nt – 1Simple Interest Amortized Loan: pymt-P(1+)n(1+ 5)nt – 1Simple Interest Amortized Loan Unpaid Balance (after t years): P(1+5)nt – pymt-(1+ 5)nt – 1Payout Annuity: P(1+)nt = pymt ·n(1+c1-1+rPayout Annuity with COLA: Ppymt ·r - c

Payment No. Principal Portion ($) Interest Portion ($) Total Payment ($) Balance ($) 0 --- --- ---…

12. Bert and Ernie borrowed $6000 to buy Big Bird a new nest. They made quarterly payments of $558.68 for three years to pay back the loan. If they took out a 7% simple interest amor- tized loan, prepare an amortization schedule showing their first two payments. Payment No. Principle portion Interest portion Total payment Balance $6000 1 2

12. Bert and Ernie borrowed $6000 to buy Big Bird a new nest. They made quarterly payments of $558.68 for three years to pay back the loan. If they took out a 7% simple interest amor- tized loan, prepare an amortization schedule showing their first two payments. Payment No. Principle portion Interest portion Total payment Balance $6000 1 2

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

19 You borrow $5,600 to buy a car. The terms of the loan call for monthly payments for four years at a 5.9% rate of interest. What is the amount of each payment? A. $103.22 B $130.62 C $103.73 D $131.26 OA OB OC OD
Question 1 (a) Brian borrows $500,000 now and the interest rate on the loan is $8% p.a. compounded monthly. Calculate the total amount of payment and the total amount of interest to be paid when the loàn is settled after two years using the following two payment methods. (i) A lump sum of principal and interest to be paid at the end of two years. ! (ii) Regular payments to be paid at the end of each month in the coming two years.
6. Loan Amortization Assume that your aunt sold her house on December 31, and to help close the sale she took a second mortgage in the amount of $30,000 as part of the payment. The mortgage has a quoted (or nominal) interest rate of 12%; it calls for payments every 6 months, beginning on June 30, and is to be amortized over 10 years. Now, 1 year later, your aunt must inform the IRS and the person who bought the house about the interest that was included in the two payments made during the year. (This interest will be income to your aunt and a deduction to the buyer of the house.) To the closest cent, what is the total amount of interest that was paid during the first year? Do not round intermediate calculations. Round your answer to the nearest cent. $
Use the following to answer questions 20 – 24 On January 1, year 1, JT borrows $41,000 to purchase a new vehicle by agreeing to a 3.0%, 6-year loan with the bank. Payments are due at the end of each month with the first installment (vehicle payment) due on January 31, year 1. ROUND YOUR ANSWERS TO THE NEAREST CENT. 20. Determine the monthly vehicle payment (installment) $ 21. Determine the interest expense for the first car payment $ 22. How much of the payment will decrease the amount owed (principal)? $ 23. After the first vehicle payment is made the amount owed on the vehicle would be: $ 24. Determine interest expense for the second car payment $
Stu Reese has a $150,000 7 %2% mortgage. His monthly payment is $1,010 His first payment will reduce the principal to an outstanding balance of: Amortization Schedule Month # Payment Interest Principal Balance 0 $150,000 ? 1 $1,010.10 ? ? O $149,927.40 O $149,729.40 O $149,910.40 O $72.60 O None of these
Answer the given problem. Problem: Mrs Talla obtained a loan of P200,000. She has to repay the loan by equal payments at the end of every six months for 5 years at 2% interest compounded semi-annually. Find the periodic payment. (Prepare an amortization schedule) The given picture is only a sample of amortization schedule please refer to it. Thank you.
7- Please I want solution of all sub-part questions. Thanks
1. Jason and Coretta agreed to pay $559,000 for a four-bedroom colonial home with a $70,000 down payment. They have a 30-year mortgage at a fixed rate of 6.00%.How much is their monthly payment? Monthly payment $ Complete the table for the breakdown of the first payment. Portion to --- Payment number 1 Interest $_______________ Principal $______________ Balance of loan outstanding $________________________
What is the process of consideration of the payback period?
1.What is the future value of $2,000 after 3 years if the interest rate is 8%, compounded semiannually?Select one:a. $2,854.13b. 2,781.45c. $2,324.89d. $2,530.64$2. Bilsl borrowed $100,000 today that he must repay in 10 annual end-of-year installments of $14,902. What annual interest rate is Bill paying on his loan?a.8.0%b. 7.5%c. 4.9%d. 5.4%3.ABC Company has $100 million in total assets and its corporate tax rate is 40%. The company recently reported that its basic earning power ratio (EBIT/Total Asset) was 15% and its return on assets (Net Income/ Total Assets) was 9%. What was the company’s interest expense?a. $15,000,000b. $ 0c. $2,000,000d. $ 6,000,0004.Marry has $500,000 and wants to retire. He expects to live for another 20 years, and to be able to earn 8% on his invested funds. How much could he withdraw at the end of each of the next 20 years?a. $53,431.83b. $50,926.10c. $55,119.76d. $54,764.405.How much would you pay for a stock that is expected to make a $1.50 dividend in…
Ryan must pay off a loan of $4,000 in 3 years. Use the appropriate formula to find the amortization payment he would need to make each six months, at 12% interest compounded semiannually. A. $132.86 B. $401.85 C. $573.45 D. $813.45
Answer

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