Consider a 4-year amortizing loan. You borrow $2,400 initially and repay it in four equal annual year-end payments. a. If the interest rate is 10%, what is the annual payment? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Annual payment $ b. Prepare an amortization schedule. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Leave no cells blank - be certain to enter "0" wherever required. Time 0 1 ✓Answer is complete and correct. 757.13 2 3 4 Loan Balance ($) Answer is complete but not entirely correct. Year-End Interest Due on Loan Balance ($) 2,400.00 0 2,400.00 1,882.87 1,314.03 688 x 240.00 188.29 131.40 68.83 Total Year- End Payment ($) 0 757.13 757.13 757.13 757.13 Amortization of Loan (S) 0 517.13 568.84 625.73 688.30 S

Consider a 4-year amortizing loan. You borrow $2,400 initially and repay it in four equal annual year-end payments. a. If the interest rate is 10%, what is the annual payment? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Annual payment $ b. Prepare an amortization schedule. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Leave no cells blank - be certain to enter "0" wherever required. Time 0 1 ✓Answer is complete and correct. 757.13 2 3 4 Loan Balance ($) Answer is complete but not entirely correct. Year-End Interest Due on Loan Balance ($) 2,400.00 0 2,400.00 1,882.87 1,314.03 688 x 240.00 188.29 131.40 68.83 Total Year- End Payment ($) 0 757.13 757.13 757.13 757.13 Amortization of Loan (S) 0 517.13 568.84 625.73 688.30 S

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 following loan is a simple interest amortized loan with monthly payments. $155,000, 9- 9-%, 30 years 2 (a) Find the monthly payment. (Give your answer to the nearest cent.) Payment $ (b) Find the total.interest for the given simple interest amortized loan. (Give your answer to the nearest cent.) Total interest | Enter a number.
Mr. Bean wants to borrow $8,200 for three years. The Interest rate Is 5.5% compounded monthly. a. What quarterly payments are required on the loan? (Do not round intermediate calculations and round your final answer to 2 decimal places.) PMT $ b. What will be the balance owed on the loan at the start of the third year? (Round PMT calculation to 2 decimal places. Do not rou other intermediate calculations and round your final answer to 2 decimal places.) Balance owed
Assume that you have a balance of $4600 on your Discover credit card and that you make no more charges. Assume that Discover charges 26% APR and that each month you make only the minimum payment of 2.3% of the balance. What will the balance be after 10 years? Enter your answer rounded to the nearest cent. balance after 10 years: $
A fully amortizing mortgage loan is made for $84,000 at 6 percent interest for 25 years. Payments are to be made monthly. Required: a. Calculate monthly payments. b. Calculate interest and principal payments during month 1. c. Calculate total principal and total interest paid over 25 years. d. Calculate the outstanding loan balance if the loan is repaid at the end of year 10. e. Calculate total monthly interest and principal payments through year 10. f. What would the breakdown of interest and principal be during month 50?
You borrow $2,400 to pay for a Caribbean vacation and will pay it off over 2 years with regular monthly What is the regular payment if interest is charged on the loan amount at APR of 8% interest is charged monthly on the balance still Create an amortization table for this loan on Excel What is the total amount of payments made in part a.? What is the total interest
Consider a home mortgage of $200,000 at a fixed APR of 3% for 25 years. a. Calculate the monthly payment. b. Determine the total amount paid over the term of the loan. c. Of the total amount paid, what percentage is paid toward the principal and what percentage is paid for interest. a. The monthly payment is $ (Do not round until the final answer. Then round to the nearest cent as needed.) b. The total amount paid over the term of the loan is $ (Round to the nearest cent as needed.) c. Of the total amount paid,% is paid toward is paid % toward (Round to one decimal place as needed.) the principal, the principal, and % is paid for interest. and
Please make sure the answers are clear n easy to read. Please do it on white paper. Again make sure the answer is clear. do it on white paper
Investigate the effect of the term on simple interest amortized auto loans by finding the monthly payment and the total interest for a loan of $13,000 at 8 and 7/8% interest if the term is the following. (Round all answers to the nearest cent.) (a) 3 years. Payment $16461.25 Total interest $3461.25 (b) 4 years. Payment $17615 Total interest $ 4615 (c) 5 years. Payment $18768.75 Total interest $ 5768.75 X X XX XX
You wish to make 4 equal annual deposits into a savings account such that at the time of your last deposit there is $108,581 in the savings account. If the interest rate on the account is an annual nominal interest rate of 3.9% compounded daily, how much must the equal annual deposits be? Provide an exact answer to two decimal places. -Be sure to use the correct annual interest rate when determining the required annual deposit (i.e. you must use the effective annual interest rate) -Use 365 days for the number of days in a year
A borrower has two alternatives for a loan: (1) issue a $300,000, 120-day, 8% note or (2) issue a $300,000, 120-day note that the creditor discounts at 8%. Assume a 360-day year. a. Calculate the amount of the interest expense for each option.$ for each alternative. b. Determine the proceeds received by the borrower in each situation. (1) $300,000, 120-day, 8% interest-bearing note $ (2) $300,000, 120-day note discounted at 8% $ c. Alternative is more favorable to the borrower because the borrower .
You want to pay off your mortgage on something called an accelerated bi-weekly payment plan. You have a mortgage of $480,000 amortized over 16 years at a rate of 2.5 percent APR compounded semi-annually. (Assume 52 weeks a year.) a. What would the regular bi-weekly payment be? (Do not round your intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.) Regular bi-weekly payment $ b. What would the accelerated bi-weekly payment be? (Do not round your intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.) Accelerated bi-weekly payment $ c. How much quicker would you pay off the mortgage payment? (Round your answer to 3 decimal places.) Pay off periodyears d. How much interest would you save by doing the accelerated bi-weekly payment? (Do not round your intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.) Savings in interest payment

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