A new hotel built in Banff cost $56 million to build. The owner's financing arrangements allow forquarterly payments at 8.2% compounded semi-annually over the next 20 years. The first payment is tobe made today.a. What is the amount of the final payment?Numberb. Calculate the principal and interest portions of the payments in the final five years.Principal (PRN) = NumberInterest (INT) = Number

Loan amount = $56 millionInterest rate = 8.2% compounding semi-annuallyMaturity = 20 yearsTo find:…

Answered: A new hotel built in Banff cost $56…

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 $22,550 loan is to be settled by making payments of $6,862 at the end of every three months. The interest is 4.5% compounded semi-annually. a) Find the number of payments in the term. N Payment Number b) Fill in the missing values of the amortization schedule below. Round off your answers to two decimal places. Enter a positive value for all answers. 0 1 2 3 4 Payment Amount ($) PMT $ 6,862 $ 6,862 6,862 = 3.37 $ 2,531.51 x Interest Portion ($) INT $254.64 X $180.03 X $104.57 X $28.27 X Principal Portion ($) PRN GA X FA FA 6,607.36 x Loan Balance ($) BAL $ 15,942.6 x FA $22,550 FA
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