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A $51,000 loan at 9.6 % compounded semiannually is to be repaid by semiannual payments of $3,900 (excep 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 fifth payment? Interest for a

A $51,000 loan at 9.6 % compounded semiannually is to be repaid by semiannual payments of $3,900 (excep 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 fifth payment? Interest for a

Essentials Of Investments
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 $51,000 loan at 9.6% compounded semiannually is to be repaid by semiannual payments of $3,900 (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 fifth payment? Interest c. How much will Payments 8 to 14 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 2
Transcribed Image Text:A $51,000 loan at 9.6% compounded semiannually is to be repaid by semiannual payments of $3,900 (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 fifth payment? Interest c. How much will Payments 8 to 14 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 2
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