A $46,000 loan at 8.9% compounded semiannually is to be repaid by semiannual payments of $3,400 (except for a smaller final payment). (Do not round intermediate calculations and round your final answers to 2 decimal places.) a. What will be the principal component of the sixteenth payment? Principal $ b. What will be the interest portion of the eighth payment? Interest c. How much will Payments 9 to 15 inclusive reduce the principal balance? Principal reduction $ d. How much interest will be paid in the fifth year? Interest paid $ e. What will be the final payment? Final payment $

A $46,000 loan at 8.9% compounded semiannually is to be repaid by semiannual payments of $3,400 (except for a smaller final payment). (Do not round intermediate calculations and round your final answers to 2 decimal places.) a. What will be the principal component of the sixteenth payment? Principal $ b. What will be the interest portion of the eighth payment? Interest c. How much will Payments 9 to 15 inclusive reduce the principal balance? Principal reduction $ d. How much interest will be paid in the fifth year? Interest paid $ e. What will be the final payment? Final payment $

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 loan is to be amortized quarterly at P167,900.00 for three years. Find the outstanding principal after the tenth payment if money is worth 8% converted quarterly. Select one: O a. P703,916.06 O b. P30,825.31 O c. P24,255.86 d. No answer O e. P325,988.08
a)loan of £16,000 is repaid by annual payments of £1,500 each at the end of the year. How long does it take to repay the loan on the basis of an interest rate of 4% p.a.? b)Suppose the payment at t=14 is increased to repay the loan (a balloon payment). What is the value of the payment at t=14? Enter an answer correct to 2 decimal places c)Alternatively, the loan may be repaid via a payment at t=15�=15 (a drop payment). What is the value of the payment at t=15? Enter an answer correct to 2 decimal places
You are looking at a one-year loan of $10,000. The interest rate on a one-year loan is quoted as 13 percent plus 3 points. What is the EAR? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Effective annual rate Is your answer affected by the loan amount? O Affected 16.79 % Not affected
The interest rate on a $55,000 loan is 8.2% compounded semiannually. Quarterly payments will pay off the loan in fourteen years. (Do not round intermediate calculations and round your final answers to 2 decimal places.) a. Calculate the interest component of Payment 12. Interest $ b. Calculate the principal component of Payment 49. Principal $ c. Calculate the total interest in Payments 39 to 50 inclusive. Total interest $ d. Calculate the reduction of principal in Year 4. Principal reduction $
12. i) Calculate the amount received from a loan that charges interest in advance by 4% and must be repaid by P2000 at the end of three years. ii) If the present value in problem i is of P1778, what is the compound rate of interest in advance applied?
Determine the monthly payment for the installment loan. Use the installment payment formula m = 1- Amount Financed (P) $1,440 O A. $179.15 B. $35.15 O C. $125.26 O D. $366.02 P n 1+) - not Annual Percentage Rate (r) 8% Number of Payments per Year (n) 12 Time in Years (t) 4
The interest rate on a $100,000 loan is 7.2% compounded semiannually. The monthly payments on the loan are $700. Do not round intermediate calculations. Round the PMT and final answers to 2 decimal points. a) Calculate the interest component of Payment 221. b) Calculate the principal component of Payment 156. c) Calculate the final payment.
What monthly payment is required to pay off a $60,000 loan in seven years if the interest rate on the loan is 8.7% compounded: (Do not round intermediate calculations and round your final answers to 2 decimal places.) a. Annually b. Seniannually c. Quarterly d. Monthly Required payment $ $ $ $
A loan is to be repaid by $1250 in 1.5 years and $1750 in three years and three months . The borrower has asked to repay $1000 in two years and a final payment in four years. If money can earn 8% compounded semi annually, what is the size of the final payment? Select one: a. 2206 b. 1200 c. none of them d. 1372 e. 1468
bipin
A demand loan for $10,088.75 with interest at 7.1% compounded annually is repaid after 4 years, 8 months. What is the amount of interest paid? The amount of interest is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
Prepare an amortization schedule for a five-year loan of $47,000. The interest rate is 7% per year, and the loan calls for equal annual payments. (Do not round intermediate calculations. Enter all amount as positive value. Round the final answers to 2 decimal places. Leave no cells blank - be certain to enter "O" wherever required.) Year 1 Beginning Balance $ 2 2 3 4 5 Total Payment $ Interest Payment Principal Payment Ending Balance $ How much interest is paid in the third year? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Interest paid $ How much total interest is paid over the life of the loan? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Total interest $

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