a. Calculate the interest component of Payment 13. Interest b. Calculate the principal component of Payment 50. Principal c. Calculate the total interest in Payments 39 to 50 inclusive. Total interest %24 %24

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
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The interest rate on a $57,000 loan is 10.4%
compounded semiannually. Quarterly payments
will pay off the loan in fifteen years. (Do not round
intermediate calculations and round your final
answers to 2 decimal places.)
a. Calculate the interest component of Payment 13.
Interest
b. Calculate the principal component of Payment
50.
Principal
c. Calculate the total interest in Payments 39 to 50
inclusive.
Total interest
$
d. Calculate the reduction of principal in Year 4.
Principal reduction
%24
%24
Transcribed Image Text:The interest rate on a $57,000 loan is 10.4% compounded semiannually. Quarterly payments will pay off the loan in fifteen years. (Do not round intermediate calculations and round your final answers to 2 decimal places.) a. Calculate the interest component of Payment 13. Interest b. Calculate the principal component of Payment 50. Principal c. Calculate the total interest in Payments 39 to 50 inclusive. Total interest $ d. Calculate the reduction of principal in Year 4. Principal reduction %24 %24
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