A loan of $370,000 is amortized over 30 years with payments at the end of each month and an interest rate of 6.9%, compounded monthly. Use Excel to create an amortization table showing, for each of the 360 payments, the beginning balance, the interest owed, the principal, the payment amount, and the ending balance. Answer the following, rounding to the nearest penny. a) Find the amount of each payment. $ b) Find the total amount of interest paid during the first 15 payments. $ c) Find the total amount of interest paid over the life of the loan. $ d) Find the total of all payments made over 30 years. $ Suppose that payment number 3 is skipped and the interest owed for month 3 is added to the balance. Payments then resume as usual for the remainder of the 30 years. e) Find the balance owing at the end of month 3. $ f) Find the balance remaining after the 360th payment. $
A loan of $370,000 is amortized over 30 years with payments at the end of each month and an interest rate of 6.9%, compounded monthly. Use Excel to create an amortization table showing, for each of the 360 payments, the beginning balance, the interest owed, the principal, the payment amount, and the ending balance. Answer the following, rounding to the nearest penny. a) Find the amount of each payment. $ b) Find the total amount of interest paid during the first 15 payments. $ c) Find the total amount of interest paid over the life of the loan. $ d) Find the total of all payments made over 30 years. $ Suppose that payment number 3 is skipped and the interest owed for month 3 is added to the balance. Payments then resume as usual for the remainder of the 30 years. e) Find the balance owing at the end of month 3. $ f) Find the balance remaining after the 360th 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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Transcribed Image Text:A loan of $370,000 is amortized over 30 years with payments at the end of each month and an interest rate of 6.9%, compounded monthly.
Use Excel to create an amortization table showing, for each of the 360 payments, the beginning balance, the interest owed, the principal, the payment amount, and the ending balance.
Answer the following, rounding to the nearest penny.
a) Find the amount of each payment. $
b) Find the total amount of interest paid during the first 15 payments. $
c) Find the total amount of interest paid over the life of the loan. $
d) Find the total of all payments made over 30 years. $
Suppose that payment number 3 is skipped and the interest owed for month 3 is added to the balance. Payments then resume as usual for the remainder of the 30 years.
e) Find the balance owing at the end of month 3. $
f) Find the balance remaining after the 360th payment. $
Transcribed Image Text:During any given year, each stock in a portfolio will either increase in value or decrease in value (no stock will remain exactly even). Assume that each stock in the portfolio has a 52%
chance of increasing in value. The portfolio contains four different stocks and the stock prices are independent of each other.
(a) What is the probability that all of the stocks decrease in value during the year? (Round answer to four decimal places.)
(b) What is the probability that at least one of the stocks will increase in value during the year? (Round answer to four decimal places.)
(c) What is the probability that at least one of the stocks will decrease in value during the year? (Round answer to four decimal places.)
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Answering 1st question's 3 sub-parts.
Data given:
Loan amount=$ 370,000
n=30 years
r=6.9% compounded monthly
Working Note#1
Calculation of nper
nper=30 years *12=360
Working Note#2
Monthly rate=6.9%/12=0. 575%
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