SavedHelpSavProblem 6-4 Calculating Instalment Loan Payments, Interest, and Principal [LO2]a. f Dave had borrowed $280 for one year at an APR of 6 percent, compounded monthly, what would have been las monthly loanpayment? Use Exhibit 18-4. (Do not round your intermediate calculations. Round your final answer to 2 decimal places. Omit the"S" sign in your response.)PMTb What would have been the breakdown between interest and principal of the fifth payment? Use Exhibit 194. (Do not round yourIntermediate calculations. Round your final answers to 2 decimel places. Omit the "S" sign in your response.)InterestPrincipal

Answered: Help Problem 6-4 Calculating Instalment…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Vijay
Problem 9-5 Calculating Monthly Mortgage Payments [LO9-4] Based on Exhibit 9-9, or using a financial calculator, what would be the monthly mortgage payments for each of the following situations? Note: Round time value factor and final answers to 2 decimal places. What relationship exists between the length of the loan and the monthly payment? How does the mortgage rate affect the monthly payment? Answer is complete but not entirely correct. Monthly Mortgage Payment a. $57,000, 15-year loan at 5.50 percent. b. $120,000, 30-year loan at 7.50 percent. c. $108,000, 20-year loan at 5.50 percent. d-1. Longer mortgage terms mean a d-2. For increase in mortgage rate lower higher $ $ $ monthly payment. monthly payment is required. 465.74 839.06 742.92
17 Problem 5-39 Loan Payments (LG5-9) You wish to buy a $20,500 car. The dealer offers you a 5-year loan with a 9 percent APR. What are the monthly payments? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Answer is complete and correct. Payment $ 425.55 per month Payment How would the payment differ if you paid interest only? (Do not round intermediate calculations and round your final answer to 2 decimal places.) 4 per month
Problem 25-7 (LG 25-4) Assume an Fl originates a pool of short-term real estate loans worth $39 million with maturities of five years and paying interest rates of 7 percent (paid annually). The loans are amortized. a. What is the average payment received by the FI (both principal and interest) if no prepayment is expected over the life of the loans? b. If the loans are converted into real estate certificates and the Fl charges a 150 basis points servicing fee (including insurance), what are the payments expected by the holders of the securities, if no prepayment is expected? (For all requirements, enter your answers in dollars not in millions. Do not round intermediate calculations. Round your answers to the nearest dollar amount.) × Answer is complete but not entirely correct. Average payment $ 9,511,737 b. Average payment $ 9,369,061 (X)
Chapter 7 Self Test Problem #2
Main content ing EAR with Points [LO4] You are looking at a one-year loan of $10,000. The interest rate is quoted as 9.7 percent plus 2 points. A point on a loan is 1 percent (one percentage point) of the loan amount. Quotes similar to this one are common with home mortgages. The interest rate quotation in this example requires the borrower to pay 2 points to the lender up front and repay the loan later with 9.7 percent interest. What rate would you actually be paying here?
Problem 6-41 Calculating Annuity Present Values [LO2] You want to borrow $87,000 from your local bank to buy a new sailboat. You can afford to make monthly payments of $1,550, but no more. Assuming monthly compounding. what is the highest rate you can afford on a 72-month APR loan? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Interest rate %
Problem 9-5 Calculating Monthly Mortgage Payments [LO9-4] Based on Exhibit 9-9, or using a financial calculator, what would be the monthly mortgage payments for each of the following situations? Note: Round time value factor and final answers to 2 decimal places. What relationship exists between the length of the loan and the monthly payment? How does the mortgage rate affect the monthly payment? a. $120,000, 15-year loan at 5 percent. b. $86,000, 30-year loan at 4.5 percent. c. $105,000, 20-year loan at 4 percent. d-1. Longer mortgage terms mean a d-2. For increase in mortgage rate monthly payment. Monthly Mortgage Payment monthly payment is required.
Problem 5-55 Amortization with Equal Payments [LO 3] Prepare an amortization schedule for a three-year loan of $102,000. The interest rate is 11 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 Beginning Balance Total Payment Interest Payment Principal Payment Ending Balance 1 2 3 Total interest

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