A design studio received a loan of $9,400 at 5.90% compounded monthly to purchasea camera. If they settled the loan in 2 years by making monthly payments, constructthe amortization schedule for the loan and answer the following questions.a. What was the payment size?Round to the nearest centKSUBMIT QUESTIONSAVE PROGRESSSUBMIT ASSIGNMENT12°C Partly sunnyENG10:038/5/2 b. What was the size of the interest portion on the first payment?Round to the nearest centc. What was the balance of the loan at end of the first year?Round to the nearest centnoSUBMIT QUESTIONSAVE PROGRESSSUBMIT ASSIGNAATLAS 12°C Partly sunnyENG

An amortization schedule is the table of a loan's repayments schedule. It includes information like…

Answered: A design studio received a loan of…

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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Dave Krug finances a new automobile by paying $7,100 cash and agreeing to make 20 monthly payments of $530 each, the first payment to be made one month after the purchase. The loan bears interest at an annual rate of 12%. What is the cost of the automobile? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places.) Monthly Payment Table Values are Based on: Present Value of Loan n i || = = Table Factor Cash Down Payment = Present Value of Loan Cost of the Automobile
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A design studio received a loan of $9,400 at 5.90% compounded monthly to purchase a camera. If they settled the loan in 2 years by making monthly payments, construct the amortization schedule for the loan and answer the following questions. a. What was the payment size?