5. Tonya finances $27,000 at 7% (per yr.) for 7 years. The monthly payment is $407.50.(a) The first payment includes $157.50 interest. How much principal is in the 1" payment?407.50-157.50-250(b) Find the new loan balance after the 1" payment if the payment was on time.27,000250 = 26,750(c) Use /- Prr to find the interest in the 2nd payment if the 1" payment was on time.26.750 x 0.07T2 = 156.04(d) How many monthly payments are scheduled? If all payments are made as scheduled,what is the total interest paid?7x12=8484 x 467.50 -27,000 = 7,230(e) Slightly increasing the payment to $460.32 per month will pay off the loan in 72payments. How much interest is saved to the nearest dollar?

Loans are paid by equal monthly payments and these payments carry the payment for interest and…

Answered: (a) The first payment includes $157.50…

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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E10.7 (LO 2) (Analyze instalment payment schedule.) The following instalment payment schedule is for a long-term bank loan payable: Interest Period Issue date 1 2 3 4 5 Instructions Cash Payment $23,097.48 23,097.48 23,097.48 23,097.48 23,097.48 Interest Expense $5,000.00 4,095.13 3,145.01 2,147.38 1,099.88 Reduction of Principal $18,097.48 19,002.35 19,952.47 20,950.10 21,997.60 Principal Balance $100,000.00 81,902.52 62,900.17 42,947.70 21,997.60 0 ☐ a. Assuming payments are made annually, what is the interest rate on the bank loan? b. Prepare the journal entry to record the first instalment payment. c. What are the current and non-current portions of the bank loan after the payment at the end of period 2? Σ
Use the number 4 formula in the second image labeled principal contained in kth payment (NO EXCEL). Please write out all steps and explain.
Question7. Down payment Interest rate Terms Loan Amount 0 48 4% 4.12% 4.25% 4.75% Find the mortgage payment for the terms and interest rates given 100000 60 72 84
Pls help ASAP
A loan carries a simple interest rate of 5.25 % . The loan was fully repaid by two $5000 payments made 8 and 11 months after the original date of the loan. How much was borrowed at the start? Multiple Choice $10,000 $9601.34 $9661.84 $9540.85 $9329.44
E10.7 (LO 2) (Analyze instalment payment schedule.) The following instalment payment schedule is for a long-term bank loan payable: Interest Period Issue date 1 2 3 4 5 Instructions Cash Payment $23,097.48 23,097.48 23,097.48 23,097.48 23,097.48 Interest Expense $5,000.00 4,095.13 3,145.01 2,147.38 1,099.88 Reduction of Principal $18,097.48 19,002.35 19,952.47 20,950.10 21,997.60 Principal Balance $100,000.00 81,902.52 62,900.17 42,947.70 21,997.60 0 a. Assuming payments are made annually, what is the interest rate on the bank loan? b. Prepare the journal entry to record the first instalment payment. c. What are the current and non-current portions of the bank loan after the payment at the end of period 2?
Ma3. A loan is amortized by level payments made at the end of each quarter, for 25 years: The monthly rate is 1%. The principal in the 29th payment is 8370. Find OLB69 OA. 1,115,185.53 OB. 1,101,108.22 OC. The correct answer is not shown here. OD. 1,430,370.34 OF. 1,301,108.22
7.Compute the principal (in $) for the loan. Use ordinary interest when time is stated in days. Principal Rate (%) Time Interest $ 7 1 1 2 years $735
16) A car loan for $33,550 has an interest rate of 5.25% and is amortized over 60 months. What is the monthly payment on the loan? a. $ 425.78 b. $679.92 17) c. $636.98 d. $351.24 Using the same facts as #16, what is the balance of the loan after 3 full years of payments? a $ 14,482 b. $ 8,299.28 c. Zero. d $15,942
Calculate the missing information for the installment loan that is being paid off early. Number ofPayments PaymentsMade PaymentsRemaining Sum-of-the-Digits PaymentsRemaining Sum-of-the-Digits Numberof Payments RebateFraction 18 6
This needs to be done with the PMT functions, I can't figure out why the principal and interest don't add to the payment amount. I need help on 38 - 42. Thank you!
Am. 327.

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