A debt of $33,000 is repaid over 13 years with payments occurring monthly. Interest is 10% compounded semi-annually. (a) What is the size of the periodic payment? (b) What is the outstanding principal after payment 81? (c) What is the interest paid on payment 82?

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
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A debt of $33,000 is repaid over 13 years with payments occurring monthly. Interest is 10% compounded
semi-annually.
(a) What is the size of the periodic payment?
(b) What is the outstanding principal after payment 81?
(c) What is the interest paid on payment 82?
(d) How much principal is repaid in payment 82?
(a) The size of the periodic payment is $
(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places
as needed.)
(b) The outstanding principal is $
(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places
as needed.)
(c) The interest paid is $
(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places
as needed.)
(d) The principal repaid is $
(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places
as needed.)
Transcribed Image Text:A debt of $33,000 is repaid over 13 years with payments occurring monthly. Interest is 10% compounded semi-annually. (a) What is the size of the periodic payment? (b) What is the outstanding principal after payment 81? (c) What is the interest paid on payment 82? (d) How much principal is repaid in payment 82? (a) The size of the periodic payment is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (b) The outstanding principal is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (c) The interest paid is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (d) The principal repaid is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
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