A design studio received a loan of $3,100 at 4.50% compounded semi-annually to purchase a camera. If they settled the loan in 3 years by making quarterly payments, construct the amortization schedule for the loan and answer the following questions: a. What was the payment size? Round to the nearest cent b. What was the size of the interest portion on the first payment? Round to the nearest cent c. What was the balance of the loan at end of the first year? Round to the nearest cent d. What was the size of the interest portion on the last payment? Round to the nearest cent
Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
A design studio received a loan of $3,100 at 4.50% compounded semi-annually to purchase a camera. If they settled the loan in 3 years by making quarterly payments, construct the amortization schedule for the loan and answer the following questions:
a. What was the payment size?
Round to the nearest cent
b. What was the size of the interest portion on the first payment?
Round to the nearest cent
c. What was the balance of the loan at end of the first year?
Round to the nearest cent
d. What was the size of the interest portion on the last payment?
Round to the nearest cent
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