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
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
Chapter4: Time Value Of Money
Section4.17: Amortized Loans
Problem 1ST
Related questions
Question
![The interest rate on a $59,000 loan is 8.9% compounded semiannually. Quarterly payments will pay off the loan in twelve years. (Do
not round Intermedlate celculatlons and round your final answers to 2 declmal places.)
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
d. Calculate the reduction of principal in Year 5.
Principal reduction
$ 4095.68
Mc
Graw
Hill
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Transcribed Image Text:The interest rate on a $59,000 loan is 8.9% compounded semiannually. Quarterly payments will pay off the loan in twelve years. (Do
not round Intermedlate celculatlons and round your final answers to 2 declmal places.)
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
d. Calculate the reduction of principal in Year 5.
Principal reduction
$ 4095.68
Mc
Graw
Hill
< Prev
5 of 9
Next >
correct
W
bo
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