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.)
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
Problem 17P
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Concept explainers
Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
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![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.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F72b75068-29b8-4124-bec8-e7ada67d8e65%2F46aed824-eae9-4b9f-87db-0e75abb22997%2F77vva87_processed.jpeg&w=3840&q=75)
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.)
Expert Solution
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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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