a. The time needed to pay off the loan with payments of $14,000.00 is (Round up to the nearest year.) b. The total amount of the payments is $ (Round to the nearest cent as needed. c. The amount of interest saved is
a. The time needed to pay off the loan with payments of $14,000.00 is (Round up to the nearest year.) b. The total amount of the payments is $ (Round to the nearest cent as needed. c. The amount of interest saved is
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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the payment necessary to amortize a 4.8% loan of $81000 compounded annually with 7 annual payments is $13897. The total of the payments is $97279.77 with a total interest payment of $16279.77. The borrower made larger payments of $14000.00. Calculate (a) the time needed to pay off the loan, (b) the total amount of the payments, and (c) the amount of interest saved.
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Part 1
a. The time needed to pay off the loan with payments of
$14,000.00 is
(Round up to the nearest year.)
b. The total amount of the payments is
$
(Round to the nearest cent as needed.
c. The amount of interest saved is
$
(Round to the nearest cent as needed.)
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