The interest rate on a $59,000 loan is 8.9% compounded semiannually. Quarterly payments will pay off the loan in twelve years. (Donot round Intermedlate celculatlons and round your final answers to 2 declmal places.)a. Calculate the interest component of Payment 10.Interest$.1187.03b. Calculate the principal component of Payment 40.Principal$ 1660.07c. Calculate the total interest in Payments 29 to 40 inclusive.Total interest$ 6734.03d. Calculate the reduction of principal in Year 5.Principal reduction$ 4095.68McGrawHill< Prev5 of 9Next >correctWbo

Loan amortization refers to a schedule which is prepared to shows the periodic loan payments, amount…

Answered: a. Calculate the interest component of…

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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ll. Subject :- Accounting
Use the number 4 formula in the second image labeled principal contained in kth payment (NO EXCEL). Please write out all steps and explain.
Compute the principal (in $) for the loan. Use ordinary interest when time is stated in days. Principal Rate (%) Time Interest $ 787.5 6 months $1,575 9
ests - X þver Reference Reference Present Value of Ordinary Annuity of $1 Present Value of $1 Periods Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 0.905 0.820 | 0.744 0.676 0.614 | 0.558 0.508 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% us Period 1 Period 2 Period 3 Period 4 Period 5 0.935 0.952 0.943 0.935 1.859 1.833 1.808 0.926 0.917 0.909 0.893 0.877 0.870 1.783 1.759 1.736 2.577 2.531 2.487 0.990 0.990 0.980 0.971 0.962 | 0.952 0.980 0.961 0.943 0.925 0.907 0.971 0.942 0.915 0.889 0.864 0.961 0.924 0.888 0.855 0.823 0.951 0.906 0.863 0.822 0.784 0.943 0.917 0.909 0.893 | 0.877 0.842 0.826 0.797 0.769 0.772 0.751 0.712 0.675 0.658 | 0.641 0.708 0.683 0.636 | 0.592 0.572 0.552 0.516 0.482 0.650 0.621 0.567 0.980 0.971 0.962 0.862 0.847 0.833 0.926 0.862 0.847 0.833 1.566 | 1.528 2.174 2.106 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.037 2.914 2.855 2.798…
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
31.The actual interest rate charged on a discounted note is called the _____ interest rate. a.effective b.discount c.simple d.ordinary
Assuming a 360-day year, the interest charged by the bank, at the rate of 6%, on a 90-day, discounted note payable of $106,407 is
A4 please help......
Image is submitted need answers with formula
A company borrows as follows: amortiza oustanding t interest instalment tion amount 0 0 301.386 0 3.000.000 1 90.000 301.386 211.386 2.788.614 2 83.658 301.386 217.728 2.570.886 3 77.127 301.386 224.260 2.346.626 4 70.399 301.386 230.987 2.115.639 5 63.469 301.386 237.917 1.877.722 6 56.332 301.386 245.055 1.632.667 7 48.980 301.386 252.406 1.380.261 8 41.408 301.386 259.978 1.120.282 9 33.608 301.386 267.778 852.505 10 25.575 301.386 275.811 576.693 11 17.301 301.386 284.085 292.608 12 8.778 301.386 292.608 Loan was requested on 31 October 2019 and instalments are monthly. It is requested: a. Make accounting entries for year finished 2019. b. If company were to make a full prepayment on 15 January 2020, how much would it have to pay? Make respective accounting entry(s). Note: Remember that, to transform monthly interest rate to fortnightly interest rate, following formula must be applied: (1 + i_monthly)^ = (1+i_fortnightly) c. If at the time of applying for credit, agreed term for…
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a. Calculate the interest component of Payment 10. Interest $. 1187.03 b. Calculate the principal component of Payment 40. Principal $1660.07 c. Calculate the total interest in Payments 29 to 40 inclusive. Total interest $ 6734.03