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. $
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
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?
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
Prepare an amortization schedule showing the first four payments for the loan. John finances $200,000 towards the purchase of a new home through a 30-year mortgage. The interest rate applied to the monthly unpaid balance is 4.75%. Payment Number 1 2 3 4 Amount of Payment Interest for Period Portion to Principal Principal at End of Period = v > KA + v 600 On
Q2.7: Morgan purchased a house for $400,000. He made a downpayment of 15% of the value of the house and received a mortgage for the rest of the amount at 5.25% compounded semi-annually for 20 years. The interest rate was fixed for a 5-year term. a. Calculate the size of the monthly payments. b. Calculate the principal balance at the end of the 5-year term. c. Calculate the size of the monthly payments if after the first 5-year term the mortgage was renewed for another 5-year term at 5.00% compounded semi-annually? Kindly keep all the decimals for all the preocedures, DO NOT ROUND
Pls help on this question ASAP. Pls do the whole question pls pls pls pls pls i beg.
1

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