A $45,000 loan at 8.7% compounded semiannually is to be repaid by semiannual payments of $3,300 (except for a smaller final payment).  What will be the principal component of the sixteenth payment?  What will be the interest portion of the sixth payment? How much will Payments 8 to 14 inclusive reduce the principal balance?

A $45,000 loan at 8.7% compounded semiannually is to be repaid by semiannual payments of $3,300 (except for a smaller final payment).

 What will be the principal component of the sixteenth payment?

 What will be the interest portion of the sixth payment?

How much will Payments 8 to 14 inclusive reduce the principal balance?

How much interest will be paid in the sixth year?

What will be the final payment?

A $112,000 mortgage loan has a 25-year amortization.

a. Calculate the monthly payment at interest rates of 6.4%, 8.4%, and 10.4% compounded semiannually.

 By what percentage does the monthly payment on the 10.4% mortgage exceed the monthly payment on the 6.4% mortgage?

Percent difference

 Calculate the total interest paid over the entire 25-year amortization period at each of the three interest rates. (Assume the final payment equals the others.)

Ms. steven obtained a $42,000 home equity loan at 9.4% compounded monthly.

What will she pay monthly if the amortization period is 15 years?

How much of the payment made at the end of the fifth year will go towards principal and how much will go towards interest?

 What will be the balance on the loan after five years?

 How much interest did she pay during the fifth year?

The interest rate for the first four years of an $81,000 mortgage loan is 7.5% compounded semiannually. Monthly payments are calculated using a 20-year amortization.

a. What will be the principal balance at the end of the four-year term?

b. What will be the monthly payments if the loan is renewed at 4.9% compounded semiannually (and the original amortization period is continued)