A $37,000 loan at 8.2% compounded semiannually is tobe repaid by semiannual payments of $2500 (except forthe smaller final payment). a) What will be the principalcomponent of the 16th payment?6) What will be theinterest portion of the 6th payment?c) How much willpayments 8 to 14 inclusive reduce the principalbalance?d) How much interest will be paid in the 5th

c. Reduction in Principal from Payments 8 to 14 InclusiveThe sum of Principal Reductions from…

Answered: A $37,000 loan at 8.2% compounded…

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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A $22,550 loan is to be settled by making payments of $6,862 at the end of every three months. The interest is 4.5% compounded semi-annually. a) Find the number of payments in the term. N Payment Number b) Fill in the missing values of the amortization schedule below. Round off your answers to two decimal places. Enter a positive value for all answers. 0 1 2 3 4 Payment Amount ($) PMT $ 6,862 $ 6,862 6,862 = 3.37 $ 2,531.51 x Interest Portion ($) INT $254.64 X $180.03 X $104.57 X $28.27 X Principal Portion ($) PRN GA X FA FA 6,607.36 x Loan Balance ($) BAL $ 15,942.6 x FA $22,550 FA
Find the payment necessary to amortize a 4% loan of $900 compounded quarterly, with 15 quarterly payments. The payment size is S
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