Consider the following loan. Complete parts (a)-(c) below. An individual borrowed $87,000 at an APR of 5%, which will be paid off with monthly payments of $592 for 19 years. a. Identify the amount borrowed, the annual interest rate, the number of payments per year, the loan term, and the payment amount. the annual interest rate is%, the number of payments per year is the loan term is years, and The amount borrowed is $ the payment amount is $ b. How many total payments does the loan require? What is the total amount paid over the full term of the loan? There are payments toward the loan and the total amount paid is $. c. Of the total amount paid, what percentage is paid toward the principal and what percentage is paid for interest? The percentage paid toward the principal is% and the percentage paid for interest is%. (Round to the nearest tenth as needed.)
Consider the following loan. Complete parts (a)-(c) below. An individual borrowed $87,000 at an APR of 5%, which will be paid off with monthly payments of $592 for 19 years. a. Identify the amount borrowed, the annual interest rate, the number of payments per year, the loan term, and the payment amount. the annual interest rate is%, the number of payments per year is the loan term is years, and The amount borrowed is $ the payment amount is $ b. How many total payments does the loan require? What is the total amount paid over the full term of the loan? There are payments toward the loan and the total amount paid is $. c. Of the total amount paid, what percentage is paid toward the principal and what percentage is paid for interest? The percentage paid toward the principal is% and the percentage paid for interest is%. (Round to the nearest tenth 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 the following loan. Complete parts (a)-(c) below.
An individual borrowed $87,000 at an APR of 5%, which will be paid off with monthly payments of $592 for 19 years.
...
a. Identify the amount borrowed, the annual interest rate, the number of payments per year, the loan term, and the payment amount.
The amount borrowed is $ the annual interest rate is%, the number of payments per year is the loan term is
the payment amount is $
There are
1
b. How many total payments does the loan require? What is the total amount paid over the full term of the loan?
payments toward the loan and the total amount paid is $.
c. Of the total amount paid, what percentage is paid toward the principal and what percentage is paid for interest?
The percentage paid toward the principal is% and the percentage paid for interest is%.
(Round to the nearest tenth as needed.)
years, and
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