16. Use the section of an amortization table shown here to answer the following questions. 1 2 3 4 5 6 Month 7 8 9 10 11 12 13 14 15 16 17 16 19 20 21 22 23 24 25 26 27 28 29 30 31 A 215000 Loan ($) 22 0.055 Rate/Year 0.004583 Rate/Month 1420.63 Payment (5) Principal (5) 1 $215,000.00 $985.42 2 $214.564.79 3 $214,127 58 4 C $983.42 $981.42 $213,688.37 $979.41 5 $977.38 $213.247.14 6 $212,803.09 $975.35 7 $212,358.62 $973.31 $211.911.30 $971.26 8 9 $211,461.93 $969.20 10 $211.010.50 $967.13 11 12 $210.557.00 $965.05 $210,101.42 $962.96 13 $209,643.76 $960.87 14 $209,183.99 $958.76 $208.722.12 $956.64 $208,258 14 $954.52 $207,792 02 $952 38 18 $207,323.77 $950.23 19 $206,853.38 $948.08 20 $206.380.82 $945.91 $205,906 11 $943.74 $205.429.21 $941.65 $204,950.13 $939.35 $204,468.06 $937.15 $203,985 38 $934.93 15 16 17 21 22 23 24 25 D Interest ($) Payment ($) Principal Reduction ($) Remaining Principal ($) $1.420.63 $435.21 $214,564.79 $1,420.63 $437.21 $214,127.58 $1,420.63 $439.21 $213,688 37 $1,420.63 $441.22 $213.247.14 $1,420.63 $443.25 $212,803.89 $1,420.63 $445.20 $212,358.62 $447.32 $211,911.30 $449 37 $211.461.93 $451.43 $211,010.50 $453.50 $210,557.00 $455.58 $457.67 $1,420 63 $1,420 63 $1,420.63 $1.420.63 $1.420.63 $1,420.63 $1,420.63 $1,420.63 $1,420.63 $1,420 63 $1,420 63 E $1,420.63 $1,420.63 $1.420.63 $1,420 63 $1,420.63 $1,420.63 $1.420.63 $1,420 63 $459.76 $461.87 $463.99 $466 11 $468 25 $470.40 $472.55 $474.72 $476.89 $479.08 $481.28 $483.48 $485.70 $210,101.42 $209,643.76 $209,183.99 $208,722.12 $200,250.14 $207,792.02 $207,323 77 $206,853.38 $206,380.82 $205.906.11 $205,429.21 $204,950.13 $204,468.86 $203.985.38 $203,499 68
16. Use the section of an amortization table shown here to answer the following questions. 1 2 3 4 5 6 Month 7 8 9 10 11 12 13 14 15 16 17 16 19 20 21 22 23 24 25 26 27 28 29 30 31 A 215000 Loan ($) 22 0.055 Rate/Year 0.004583 Rate/Month 1420.63 Payment (5) Principal (5) 1 $215,000.00 $985.42 2 $214.564.79 3 $214,127 58 4 C $983.42 $981.42 $213,688.37 $979.41 5 $977.38 $213.247.14 6 $212,803.09 $975.35 7 $212,358.62 $973.31 $211.911.30 $971.26 8 9 $211,461.93 $969.20 10 $211.010.50 $967.13 11 12 $210.557.00 $965.05 $210,101.42 $962.96 13 $209,643.76 $960.87 14 $209,183.99 $958.76 $208.722.12 $956.64 $208,258 14 $954.52 $207,792 02 $952 38 18 $207,323.77 $950.23 19 $206,853.38 $948.08 20 $206.380.82 $945.91 $205,906 11 $943.74 $205.429.21 $941.65 $204,950.13 $939.35 $204,468.06 $937.15 $203,985 38 $934.93 15 16 17 21 22 23 24 25 D Interest ($) Payment ($) Principal Reduction ($) Remaining Principal ($) $1.420.63 $435.21 $214,564.79 $1,420.63 $437.21 $214,127.58 $1,420.63 $439.21 $213,688 37 $1,420.63 $441.22 $213.247.14 $1,420.63 $443.25 $212,803.89 $1,420.63 $445.20 $212,358.62 $447.32 $211,911.30 $449 37 $211.461.93 $451.43 $211,010.50 $453.50 $210,557.00 $455.58 $457.67 $1,420 63 $1,420 63 $1,420.63 $1.420.63 $1.420.63 $1,420.63 $1,420.63 $1,420.63 $1,420.63 $1,420 63 $1,420 63 E $1,420.63 $1,420.63 $1.420.63 $1,420 63 $1,420.63 $1,420.63 $1.420.63 $1,420 63 $459.76 $461.87 $463.99 $466 11 $468 25 $470.40 $472.55 $474.72 $476.89 $479.08 $481.28 $483.48 $485.70 $210,101.42 $209,643.76 $209,183.99 $208,722.12 $200,250.14 $207,792.02 $207,323 77 $206,853.38 $206,380.82 $205.906.11 $205,429.21 $204,950.13 $204,468.86 $203.985.38 $203,499 68
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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1) The question screenshot has been attached down below answer question 16 a,b,c,d,e,f step-by-step.
Transcribed Image Text:16. Use the section of an amortization table shown here to answer the following
questions.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
22
A
B
215000 Loan ($)
0.055 Rate/Year
0.004583 Rate/Month
1420.63 Payment (5)
Principal (S)
Month
8
9
1 $215,000.00 $985.42
2
$214.564.79
$983.42
3
$214,127 58
$981 42
4
$213.688.37
5
$213.247.14
6 $212.803.89
7 $212,358 62
10
11
12
18
19
20
21
22
C
23
13 $209,643.76 $960.87
14 $209,183.99 $958.76
$956.64
15
$208.722.12
$208,258 14
16
$954.52
17 $207,792 02
$952 38
$207,323.77
$950.23
$206,853.38
$948.08
$206.380.82
$945.91
$205,906 11
$943.74
$205,429.21
$941.65
$204.950.13 $939.35
$204,468.06
$937.15
$934.93
24
25 $203,985 38
$979.41
$977.38
$975.35
$973.31
$971.26
$211.911.30
$211,461.93
$969.20
$211.010.50 $967.13
$210.557.00 $965.05
$210,101.42 $962.96
Interest ($) Payment ($) Principal Reduction ($) Remaining Principal (S)
$1,420.63
5435.21
$214,564.79
$1.420.63
$437.21
$214,127.58
$1,420 63
$439.21
$213,688 37
D
$1,420.63
$1,420.63
$1,420.63
$1,420 63
$1,420 63
$1,420.63
$1,420.63
$1.420.63
$1,420.63
$1,420.63
$1,420.63
$1,420.63
$1,420 63
$1,420 63
E
$1,420.63
$1,420.63
$1.420.63
$1,420 63
$1,420.63
$1,420.63
$1.420.63
$1,420 63
$441.22
$443.25
$445.28
$447.32
$449 37
$451.43
$453.50
$455.58
$457 67
$459.76
$461.87
$463.99
$466 11
$468 25
$470.40
$472.55
$474.72
$476.89
$479.08
$481.28
F
$483.48
$485.70
$213.247.14
$212,803.89
$212,358.62
$211,911.30
$211.461.93
$211,010.50
$210,557.00
$210,101.42
$209,643.76
$209,183.99
$208,722.12
$200.250.14
$207,792.02
$207,323.77
$206.853.38
$206,380.82
$205.906.11
$205,429.21
$204,950.13
$204,468.86
$203,985.38
$203,499 68
Transcribed Image Text:a) What is the monthly payment?
b) What is the original principal?
c) What is the interest portion of the 4th payment?
d) What is the principal portion of the 6th payment?
e) What is the balance remaining after the 2nd payment?
f) Why do the interest portion values decrease as you go down the amortization table?
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