Consider a loan of $2100 at 7% compounded quarterly, with 6 quarterly payments. Find the following. (a) the payment necessary to amortize the loan (b) the total payments and the total amount of interest paid based on the calculated quarterly payments (c) the total payments and total amount of interest paid based upon an amortization table. ... (a) The quarterly payment needed to amortize this loan is $ 371.75 (Round to the nearest cent as needed.). (b) The total amount of the payments is $ 2230.5 (Round to the nearest cent as needed.) The total amount of interest paid is $ 130.5. (Round to the nearest cent as needed.) (c) The total payment for this loan from the amortization table is $ (Round to the nearest cent as needed.)
Consider a loan of $2100 at 7% compounded quarterly, with 6 quarterly payments. Find the following. (a) the payment necessary to amortize the loan (b) the total payments and the total amount of interest paid based on the calculated quarterly payments (c) the total payments and total amount of interest paid based upon an amortization table. ... (a) The quarterly payment needed to amortize this loan is $ 371.75 (Round to the nearest cent as needed.). (b) The total amount of the payments is $ 2230.5 (Round to the nearest cent as needed.) The total amount of interest paid is $ 130.5. (Round to the nearest cent as needed.) (c) The total payment for this loan from the amortization table is $ (Round to the nearest cent as needed.)
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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Transcribed Image Text:Consider a loan of $2100 at 7% compounded quarterly, with 6 quarterly payments. Find the following.
(a) the payment necessary to amortize the loan
(b) the total payments and the total amount of interest paid based on the calculated quarterly payments
(c) the total payments and total amount of interest paid based upon an amortization table.
(a) The quarterly payment needed to amortize this loan is $ 371.75.
(Round to the nearest cent as needed.)
(b) The total amount of the payments is $ 2230.5
(Round to the nearest cent as needed.)
The total amnount of interest paid is $ 130.5.
(Round to the nearest cent as needed.)
(c) The total payment for this loan from the amortization table is $
(Round to the nearest cent as needed.)
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An amortized loan is a loan that is repaid slowly by paying equal installments. The balance of the loan goes on decreasing with every payment.
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