A $700,000 loan was received on Nov. 30, 2022, with annual interest at 9.5%, C/M, requires monthly, end of period payments of $7,700, beginning Dec.31, 2022. How many payments are needed to fully pay off the loan? How much will the final payment be? How much interest is paid on the 30th payment? What is the balance still owing after 10 years?
A $700,000 loan was received on Nov. 30, 2022, with annual interest at 9.5%, C/M, requires monthly, end of period payments of $7,700, beginning Dec.31, 2022. How many payments are needed to fully pay off the loan? How much will the final payment be? How much interest is paid on the 30th payment? What is the balance still owing after 10 years?
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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Transcribed Image Text:A $700,000 loan was received on Nov. 30,
2022, with annual interest at 9.5%, C/M,
requires monthly, end of period payments of
$7,700, beginning Dec.31, 2022.
How many payments are needed to fully pay
off the loan?
How much will the final payment be?
How much interest is paid on the 30th
payment?
What is the balance still owing after 10 years?
How much of the loan principal will be paid, in
total, during years 6 and 7?
How much interest is paid, in total, during the
life of the loan?
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