brian borrows a sum of money from a bank at stipulated interest rate componded annually.The loan is to be repaid in five annual installment and in the third year Brian pays a little extra on the principal (pre-payment).Fill out the amortization table below and answer the question that follow. Term of the loan (years) 5 Interest rate 8% Loan Amount $ 5,504.00 Pre-Payment $ 157.00 Annual Payment $ 16,542.15 Years Beginning of Year Loan Balance Payment Interest Principal Pre-Payment End of Year Loan Balance 1 $ $ $ $ 2 $ $ $ $ 3 4 5 $ -
brian borrows a sum of money from a bank at stipulated interest rate componded annually.The loan is to be repaid in five annual installment and in the third year Brian pays a little extra on the principal (pre-payment).Fill out the amortization table below and answer the question that follow. Term of the loan (years) 5 Interest rate 8% Loan Amount $ 5,504.00 Pre-Payment $ 157.00 Annual Payment $ 16,542.15 Years Beginning of Year Loan Balance Payment Interest Principal Pre-Payment End of Year Loan Balance 1 $ $ $ $ 2 $ $ $ $ 3 4 5 $ -
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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brian borrows a sum of money from a bank at stipulated interest rate componded annually.The loan is to be repaid in five annual installment and in the third year Brian pays a little extra on the principal (pre-payment).Fill out the amortization table below and answer the question that follow.
| Term of the loan (years) | 5 | |||||
| Interest rate | 8% | |||||
| Loan Amount | $ 5,504.00 | |||||
| Pre-Payment | $ 157.00 | |||||
| Annual Payment | $ 16,542.15 | |||||
| Years | Beginning of Year Loan Balance | Payment | Interest | Principal | Pre-Payment | End of Year Loan Balance |
| 1 | $ | $ | $ | $ | ||
| 2 | $ | $ | $ | $ | ||
| 3 | ||||||
| 4 | ||||||
| 5 |
$ -
|
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