Amortization Table A loan of $11,000 is to be repaid over a 2-year period through equal quarterly installments with an interest rate of 13% per year compounded quarterly. Determine the size of each installment. Part 1 of 2 Use a TVM solver to solve this problem. Fill in the information that you typed into the TVM solver. Round the final answer to two decimal places. N = 1% = PV = 8 ✔ 13 11000 PMT= alpha ✔ 8 13 Final Answer: $1583.59 11000 alpha FV = P/Y = C/Y = 1583.59 o PMT: (End/Begin) End✔ ✔ Part 2 of 2 Verify the installment amount by filling in the amortization table. X 1583.59 1583.59 ✓ 1583.59 1583.59 ✔ 1583.59 ✔ 1583.59 ✔ 1583.59 1583.59 0 End of Period Interest Charged Repayment Made Payment Toward Principal Outstanding Principal 0 11000 ✓ 1 x 2 X 3 X 4 X 5 6 7 8 ✓ 4 End X X X
Amortization Table A loan of $11,000 is to be repaid over a 2-year period through equal quarterly installments with an interest rate of 13% per year compounded quarterly. Determine the size of each installment. Part 1 of 2 Use a TVM solver to solve this problem. Fill in the information that you typed into the TVM solver. Round the final answer to two decimal places. N = 1% = PV = 8 ✔ 13 11000 PMT= alpha ✔ 8 13 Final Answer: $1583.59 11000 alpha FV = P/Y = C/Y = 1583.59 o PMT: (End/Begin) End✔ ✔ Part 2 of 2 Verify the installment amount by filling in the amortization table. X 1583.59 1583.59 ✓ 1583.59 1583.59 ✔ 1583.59 ✔ 1583.59 ✔ 1583.59 1583.59 0 End of Period Interest Charged Repayment Made Payment Toward Principal Outstanding Principal 0 11000 ✓ 1 x 2 X 3 X 4 X 5 6 7 8 ✓ 4 End X X X
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
Related questions
Question
Transcribed Image Text:Amortization Table
A loan of $11,000 is to be repaid over a 2-year period through equal quarterly installments with an interest rate of 13% per year compounded quarterly. Determine the size of each
installment.
Part 1 of 2
Use a TVM solver to solve this problem. Fill in the information that you typed into the TVM solver. Round the final answer to two decimal places.
N =
1% =
PV =
8 ✔
13
11000
PMT= alpha ✔
8
13
Final Answer: $1583.59
11000
alpha
FV =
P/Y =
C/Y =
1583.59
o
PMT: (End/Begin) End✔
✔
Part 2 of 2
Verify the installment amount by filling in the amortization table.
X
1583.59
1583.59 ✓
1583.59
1583.59 ✔
1583.59 ✔
1583.59
✔
1583.59
1583.59
0
End of Period Interest Charged Repayment Made Payment Toward Principal Outstanding Principal
0
11000
✓
1
x
2
X
3
X
4
X
5
6
7
8
✓
4
End
X
X
X
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