A person borrows an amount for a new house ands/he is going to make monthly payments of 8,000$ for the next 10 years. The nominal annualinterest rate is quoted as 12%. (Assume the firstinstalment is going to be paid 1 month after s/heborrows.)a. Find the amount borrowed by this person.b. How much does this credit worth at the end ofthe last payment date?c.lf this person decides on closing his/her loanafter paying the 34th instalment, how muchshould s/he pay? It is given that the closing fee ofthis credit is 1,453 $.

Given, A = 8000 r = 12% nominal monthly rate = 12%/12 = 1% n = 10*12 = 120

a. Find the amount borrowed by this person. b. How much does this credit worth at the end of the last payment date? c.lf this person decides on closing his/her loan after paying the 34th instalment, how much should s/he pay? It is given that the closing fee of this credit is 1,453 $.

a. Find the amount borrowed by this person. b. How much does this credit worth at the end of the last payment date? c.lf this person decides on closing his/her loan after paying the 34th instalment, how much should s/he pay? It is given that the closing fee of this credit is 1,453 $.

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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Question

A person borrows an amount for a new house and
s/he is going to make monthly payments of 8,000
$ for the next 10 years. The nominal annual
interest rate is quoted as 12%. (Assume the first
instalment is going to be paid 1 month after s/he
borrows.)
a. Find the amount borrowed by this person.
b. How much does this credit worth at the end of
the last payment date?
c.lf this person decides on closing his/her loan
after paying the 34th instalment, how much
should s/he pay? It is given that the closing fee of
this credit is 1,453 $.

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3.Use the exact interest method (365 days) and the ordinary interest method (360 days) to compare the amount (in $) of interest for the loan. (Round your answers to two decimal places.) Principal Rate (%) Time (days) Exact Interest Ordinary Interest $185,500 9.75 53 $ $
6.Determine the number of days of the loan. Loan Date Due Date Number of Days June 24 October 12
Use the exact interest method (365 days) and the ordinary interest method (300 days) to compare the amount (in 1) of interest for the loan. (Round your answers to two decimal places.) Principal Rate (6) Time (days) Exect Interest Ordinary Interest $196,500 $C 9.75 51
5. Determine the number of days of the loan. Loan Date Due Date Number of Days March 8 July 22
Complete the table.
10. Elly's credit card record for the last 7 months is below. Based on the information from the table, what will be her new balance at the end of month 7? End of Month Previous New Payment Finance Principal New Balance Charges Received Charges Paid Balance 1 $0.00 $2200.00 $0.00 $0.00 $0.00 $2200.00 5 6 234567 2 $2200.00 $0.00 $44.00 $33.00 $11.00 $2189.00 $2189.00 $0.00 $43.78 $32.84 $10.95 52178.06 4 $2178.06 $0.00 $43.56 $32.67 $10.89 $2167.16 $2167.16 $0.00 $43.34 $32.51 $10.84 $2156.33 $2156.33 $0.00 $43.13 $32.34 $10.78 $2145.55 $2145.55 $0.00 $42.91 $32.18 $10.73 $?
Use the amortization table to determine how much interest is paid in the first 4 months of the loan. Click the icon to view the amortization table. $ (Type an integer or a decimal.) Amortization Table Payment Number 0 1 2 3 4 5 6 7 8 9 10 11 12 Amortization Table Amount of Payment $215.17 $215.17 $215.17 $215.17 $215.17 $215.17 $215.17 $215.17 $215.17 $215.17 $215.17 $215.13 Print Interest for Period $12.50 $11.49 $10.47 $9.44 $8.42 $7.38 $6.34 $5.30 $4.25 $3.20 $2.14 $1.07 Portion to Principal $202.67 $203.68 $204.70 $205.73 $206.75 $207.79 $208.83 $209.87 $210.92 $211.97 $213.03 $214.06 Done Principal at End of Period $2500.00 $2297.33 $2093.65 $1888.95 $1683.22 $1476.47 $1268.68 $1059.85 $849.98 $639.06 $427.09 $214.06 $0.00
Please assist on answering the questions below
a) Based on your prepared amortization schedule for Concert Time Again, Inc term loan, what is the remaining loan balance after the 4th payment AND which financial statement would that amount appear on? Type the financial statement in the text box below and write the Dollar Amount on your PDF upload Financial Statement b) Based on your prepared amortization schedule, what is the interest expense for this loan after the 4th payment AND which financial statement would this appear on? Assume the first 4 payments are in the same accounting period that is presented on the financial statement. Type the financial statement in the text box below and write the Dollar Amount on your PDF upload Financial Statement c) What will the loan balance be after the 60th payment? $
2. Find the amount (in $) of interest on the loan. Principal Rate (%) Time Interest $60,000 7 5 1 2 years $
Find the amount (in $) of interest on the loan. Principal Rate (%) Time Interest $70,000 5 4 1 2 years $
Subject :- Account

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