a. Complete an amortization schedule for a $21,000 loan to be repaid in equal installments at the end of each of the next three years. Theinterest rate is 7% compounded annually. Round all answers to the nearest cent.BeginningRepaymentEndingYearBalanceРaymentInterestof PrincipalBalance1$$$$$$$$$32$$$$b. What percentage of the payment represents interest and what percentage represents principal for each of the three years? Round allanswers to two decimal places.% Interest% PrincipalYear 1:%%Year 2:%%Year 3:%%%24%24 c. Why do these percentages change over time?I. These percentages change over time because even though the total payment is constant the amount of interest paid each year isdeclining as the remaining or outstanding balance declines.II. These percentages change over time because even though the total payment is constant the amount of interest paid each year isincreasing as the remaining or outstanding balance declines.III. These percentages change over time because even though the total payment is constant the amount of interest paid each year isdeclining as the remaining or outstanding balance increases.IV. These percentages change over time because even though the total payment is constant the amount of interest paid each year isincreasing as the remaining or outstanding balance increases.V. These percentages do not change over time; interest and principal are each a constant percentage of the total payment.

Loan = 21,000 end of yearly payments Interest rate = 7% N = 3

a. Complete an amortization schedule for a $21,000 loan to be repaid in equal installments at the end of each of the next three years. The interest rate is 7% compounded annually. Round all answers to the nearest cent. Beginning Repayment Ending Year Balance Payment Interest of Principal Balance 1 $ $ $ $ 2 $ $4 2$ 24 $ 3 $ 24 $ $ b. What percentage of the payment represents interest and what percentage represents principal for each of the three years? Round all answers to two decimal places. % Interest % Principal Year 1: % % Year 2: % Year 3:

a. Complete an amortization schedule for a $21,000 loan to be repaid in equal installments at the end of each of the next three years. The interest rate is 7% compounded annually. Round all answers to the nearest cent. Beginning Repayment Ending Year Balance Payment Interest of Principal Balance 1 $ $ $ $ 2 $ $4 2$ 24 $ 3 $ 24 $ $ b. What percentage of the payment represents interest and what percentage represents principal for each of the three years? Round all answers to two decimal places. % Interest % Principal Year 1: % % Year 2: % Year 3:

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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3. Complete an amortization schedule for a $38,000 loan to be repaid in equal installments at the end of each of the next 3 years. The interest rate is 7% compounded annually. If an amount is zero, enter "0". Do not round intermediate calculations. Round your answers to the nearest cent. Beginning Balance $ % Interest Year 1 2 3 ɔ. What percentage of the payment represents interest and what percentage represents principal for each of the 3 years? Do not round intermediate calculations. Round your answers to two decimal places. % Principal Payment $ % % % % Interest $ % Repayment. of Principal $ Year 1: Year 2: Year 3: % Why do these percentages change over time? I. These percentages change over time because even though the total payment is constant the amount of interest paid each year is declining as the remaining or outstanding balance declines. Remaining Balance $ II. These percentages change over time because even though the total payment is constant the amount of interest paid…
Compute the size of the final payment for the following loan. Periodic Payment Interval Payment Made At: end Conversion Principal $18,000 Payment $1,816 Interest Rate Period 3 months 5% quarterly
Prepare an amortization schedule for a three-year loan of $117,000. The interest rate is 8 percent per year, and the loan calls for equal annual payments. How much total interest is paid over the life of the loan? Note: Leave no cells blank. Enter '0' where necessary. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Year 1 2 3 $ Beginning Balance 117,000.00 Total Payment Total interest Interest Payment Principal Payment Ending Balance
A $ 25,000 loan at 18% semi-annually is to be amortized monthly for 2 years. Solve for the outstanding balance after a year. 13,627.69 dollars remaining 13,618.69 dollars remaining 13,613.69 dollars remaining 13,636.69 dollars remaining
The following is an amortization schedule for a loan of $5000 to be repaid over two years at 7% compounded semiannually (depicted below in the table). Find the value of A, B, C, and D.
II.DIRECTION: Compute for the amount of interest for the following; 1. Principal or amount barrowed : Php 10, 000Interest rate : 10% per yearTime : 3 months 2. Principal or amount barrowed : Php 30, 000Interest rate : 6% per yearTime : 60 days
A loan of $34, 200.00 at 5.50% compounded semi - annually is to be repaid with payments at the end of every 6 months. The loan was settled in 5 years. a. Calculate the size of the periodic payment. $3, 645.25 $4,537.24 $ 3,958.30 $4,341.38 b. Calculate the total interest paid. $5, 383.00 $39,583.00 $1,424.70 $9,341.30
Develop an amortization schedule for the loan described. (Round your answers to the nearest cent.) $130,000 for 3 years at 10% compounded annually Period Payment Interest Balance Reduction Unpaid Balance $130, 000 1 $ $ $ $2$$$$3$ $$ $0.00
Prepare an amortization schedule for a five year loan of $58,500. The interest rate is 6% per year and the loan cost for equal annual payments. How much interest is paid in the third year? how much total interest is paid over the life of the loan? Loan amount $ Interest rate Loan term Output area: 58,500 6% 5 Loan payment $13,887.69 Year Beginning balance 1 $ 58,500.00 Total payment Interest paid Principal paid Ending balance $ 13,887.69 $ 3,510.00 $ 10,377.69 $ 48,122.31 2 3 4 5 Total interest paid over life of loan
A loan of $24,800.00 at 5.00% compounded semi-annually is to be repaid with payments at the end of every 6 months. The loan was settled in 5 years. a. Calculate the size of the periodic payment. $2,606.63 $3,211.71 $2,833.62 $3,111.33 b. Calculate the total interest paid. $3,536.20 $28,336.20 $702.58 $6,369.82
H

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