$2350 was borrowed 4-years ago, is to be settled by following payments:$1175 today, $1030 in 7-months from now, and a final payment in 19-months from now.What is the BALANCE(amount owing) of the loan BEFORE the following payments if the interest rate on the loan is 14% compoundedmonthly?Todayin 7 monthsin 19 months$$$(Round All Answers to 2 Decimals)

To solve this question, we need to calculate the balance of the loan at different points in time,…

Answered: $2350 was borrowed 4-years ago, is to…

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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< A debt of $7931 23 is repaid by payments of $1129.24 in 7 months, $1229.85 in 15 months, and a final payment in 23 months. If interest was 9% compounded annually, what was the amount of the final payment? The final payment is $☐ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
Prepare an amortization schedule for a three-year loan of $117,000. The interest rate is 8 percent per year, and the loan calls for equal annual payments. How much total interest is paid over the life of the loan? Note: Leave no cells blank. Enter '0' where necessary. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Year 1 2 3 $ Beginning Balance 117,000.00 Total Payment Total interest Interest Payment Principal Payment Ending Balance
The interest rate on a $15,300 loan is 9.7% compounded semiannually. Semiannual payments will pay off the loan in nine years. (Do not round intermediate calculations. Round the PMT and final answers to 2 decimal places.) a. Calculate the interest component of Payment 12. $ b. Calculate the principal component of Payment 5. Principal c. Calculate the interest paid in Year 8. Interest paid d. How much do Payments 5 to 8 inclusive reduce the principal balance? Principal reduction Interest
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If you borrow $7,300 at $800 interest for one year, what is your effective interest rate for the following payment plans? Note: Input your answers as a percent rounded to 2 decimal places. a. Annual payment b. Semiannual payments c. Quarterly payments d. Monthly payments Effective Rate of Interest % % % %
A debt of $8866.59 is repaid by payments of $1211.36 in 3 months, $1326 43 in 14 months, and a final payment in 29 months. If interest was 6% compounded monthly, what was the amount of the final payment? CHOD The final payment is $ (Round the final answer to the nearest cont as needed Round all intermediate values to six decimal places as needed)
A company borrows $159,600 from a bank. The interest rate on the loan is 6 percent compounded semiannualy. The company agrees to repay the loan in equal semiannualy installments over the next five years. The first payment is to be made six months from now. (Use factor table in Appendix B for calculation) Required 1: What is the amount of each semiannual payment? $ Required 2: In the first payment, what is the amount of interest cancelled? $ Required 3: In the fifth payment, what is the amount of loan paid net of interest? $ Required 4: In the last payment, what is the amount of interest cancelled? $ Required 5: Assume the debt contract has the option to make one extraordinary payment of up to 20% of the principal. If the company decides to exercise the right and make the extra payment together with the 8th payment, how much it must pay in dollars at the 9th payment to pay off the loan? $
If you borrow $5,300 at $900 interest for one year, what is your annual interest cost for the following payment plan? (Round the final answers to 2 decimal places.) Effective rate a. Annual payment % b. Semiannual payments % c. Quarterly payments % d. Monthly payments %
A $32,000 loan at 8% compounded quarterly is to be repaid by equal quarterly payments over a seven-year term. (a) What will be the principal component of the sixth payment? (Round your answer to 2 decimal places.) (b) What will be the interest portion of the twenty-second payment? (Round your answer to 2 decimal places.) (c) How much will the loan’s balance be reduced by Payments 10 to 15 inclusive? (Round your answer to 2 decimal places.) (d) How much interest will be paid in the second year? (Round your answer to 2 decimal places.)
A company borrows $159,300 from a bank. The interest rate on the loan is 6 percent compounded semiannualy. The company agrees to repay the loan in equal semiannualy installments over the next five years. The first payment is to be made six months from now. (Use factor table in Appendix B for calculation) Required 1: What is the amount of each semiannual payment? $ Required 2: In the first payment, what is the amount of interest cancelled? $ Required 3: In the fifth payment, what is the amount of loan paid net of interest? $ Required 4: In the last payment, what is the amount of interest cancelled? $ Required 5: Assume the debt contract has the option to make one extraordinary payment of up to 20% of the principal. If the company decides to exercise the right and make the extra payment together with the 8th payment, how much it must pay in dollars at the 9th payment to pay off the loan? $
Henry Taylor is settling a $18,000 loan due today by making 6 equal annual payments of $3,893.68. Click here to view factor tables What payments must Henry Taylor make to settle the loan at an interest rate of 8%, but with the 6 payments beginning on the day the loan is signed? (Round factor values to 5 decimal places, eg. 1.25124 and final answers to O decimal places, e.g. 458,581.) Payments 24

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