Bank of Montreal issued a loan of $72,000 at 7.15% compounded semi-annually. The loan was repaid by payments of $980 at the end of every month. a. How many payments were required to pay off the loan? (Enter a whole number) 62 b. What was the total principal repaid in the 2nd year? (Enter starting and ending periods as P1 and P2 and the total principal repaid as a positive value to the nearest cent.) P1 = 13 P2= 24 Total principal repaid in the 2nd year = $18652.7343 c. What was the size of the final payment? (Enter a positive value to the nearest cent) $6035.7924

Bank of Montreal issued a loan of $72,000 at 7.15% compounded semi-annually. The loan was repaid by payments of $980 at the end of every month. a. How many payments were required to pay off the loan? (Enter a whole number) 62 b. What was the total principal repaid in the 2nd year? (Enter starting and ending periods as P1 and P2 and the total principal repaid as a positive value to the nearest cent.) P1 = 13 P2= 24 Total principal repaid in the 2nd year = $18652.7343 c. What was the size of the final payment? (Enter a positive value to the nearest cent) $6035.7924

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

See similar textbooks

Similar questions

A loan with payments of $900 due at the end of each month (except for a smaller final payment) was registered with a starting balance of $25,000. The loan has a semiannually compounded rate of return of 3.2%. What will be the final payment? Please answer with details and no plagiarism i give positive rating.
You have taken a loan of $6,000.00 for 3 years at 2.9% compounded monthly. Fill in the table below: (Round all answers to 2 decimal places.) Payment number Payment amount Principal Amount Interest Balance 0) $6,000.00 1) $ 2) 3) $ $
A company borrowed $13,000 paying interest at 7% compounded quarterly. If the loan is repaid by payments of $2100 made at the end of each 3 months, constructa partial amortization schedule showing the last three payments, the total paid, and the total interost paid. Complete the table below for the last three payments. (Do not round until the final answer. Then round to the nearest cent as needed.) Payment Number Outstanding Amount Paid Interest Paid Principal Repaid Principal $2100 $2100 $2100 s151.41 s 1948 50 Total Paid S (Do not round until the final answer. Then round to the nearent cent as needed) arce Interost Paid s (Do not round until the final anower. Then round to the nearest cent as needed) ess Enter your answer in each of the answer boxes
Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days for a payment to be received and recorded, and that the month is 30 days ong. (Round your answers to the nearest cent.) $3000 balance, 17%, $2,500 payment (a) previous balance method (b) adjusted balance method (c) average daily balance method
A total of $66,000 is borrowed and repaid with 48 monthly payments, with the first payment occurring one month after receipt of the $66.000. The stated interest rate is 5.00% compounded quarterly. Part a What is the intereste rate per cash flow period (month)? Round entry to six decimal places. Tolerance is +0.0005. B.) What monthly payment is required?
A loan of $17,504 was repaid at the end of 16 months. What size repayment check (principal and interest) was written, if a 7.9% annual rate of interest was charged? Question content area bottom Part 1 The amount of the repayment check was $ enter your response here. (Round to two
Enter your dollar answers rounded to the nearest two cents and precede numbers that are less than zero (0) with a minus sign (–).) Buy On Time or Pay Cash Cost of Borrowing 1. Terms of the loan a. Amount of the loan $10,000.00 b. Length of the loan (in years) 5 c. Monthly payment $188.70 2. Total loan payments made ($ per month months) $ 3. Less: Principal amount of the loan $ 4. Total interest paid over life of loan $ 5. Tax considerations: – Is this a home equity loan? no – Do you itemize deductions on your federal tax return? yes 6. What federal tax bracket are you in? 35% 7. Taxes saved due to interest deductions ($ x %) $ 8. Total after-tax interest cost on the loan $ Cost of Paying Cash 9. Annual interest earned on savings (6% x ) $ 10. Annual after-tax interest earnings ($ x %) $ 11. Total after-tax interest earnings…
The loan below was paid in full before its due date. (a) Obtain the value of h from the annual percentage rate table. Then (b) use the actuarial method to find the amount of unearned interest, and (c) find the payoff amount. Regular Monthly Payment $445.22 Remaining Number of Scheduled Payments after Payoff 6 APR 11.0% Click the icon to view the annual percentage rate table. (a) h=$ (b) The unearned interest is $ (c) The payoff amount is $ (Round to the nearest cent as needed.) (Round to the nearest cent as needed.)
A loan of $21,238 was repaid at the end of 10 months. What size repayment check (principal and interest) was written, if a 10.3% annual rate of interest was charged? CUC The amount of the repayment check was $ 23,060 93 (Round to two decimal places)
A company borrows $159,600 from a bank. The interest rate on the loan is 6 percent compounded semiannualy. The company agrees to repay the loan in equal semiannualy installments over the next five years. The first payment is to be made six months from now. (Use factor table in Appendix B for calculation) Required 1: What is the amount of each semiannual payment? $ Required 2: In the first payment, what is the amount of interest cancelled? $ Required 3: In the fifth payment, what is the amount of loan paid net of interest? $ Required 4: In the last payment, what is the amount of interest cancelled? $ Required 5: Assume the debt contract has the option to make one extraordinary payment of up to 20% of the principal. If the company decides to exercise the right and make the extra payment together with the 8th payment, how much it must pay in dollars at the 9th payment to pay off the loan? $
Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days for a payment to be received and recorded, and that the month is 30 days long. (Round your answers to the nearest cent.) $200 balance, 15%, $50 payment () previous balance method $2.77 x (b) adjusted balance method $2.09 x Þ (c) average daily balance method $233 x
A company borrowed at 4.38% compounded semi-annually to purchase equipment, agreeing to make payments of $2,760 at the end of every three months for 16 payments. (a) What is the equivalent cash price of the equipment? (b) How much will be owed at the end of two years? (c) How much of the principal will be repaid within the first two years? (d) How much interest is paid during the first two years?

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS