How large must each annual payment be if the loan is for $60,000? Assume that the interest rate remains at 12% and that the loan is still paid off over 5 years. Do not round intermediate calculations. Round your answer to the nearest cent. $ How large must each payment be if the loan is for $60,000, the interest rate is 12%, and the loan is paid off in equal installments at the end of each of the next 10 years? This loan is for the same amount as the loan in part b, but the payments are spread out over twice as many periods. Do not round intermediate calculations. Round your answer to the nearest cent. $ Why are these payments not half as large as the payments on the loan in part b? I. Because the payments are spread out over a longer time period, less interest is paid on the loan, which raises the amount of each payment. II. Because the payments are spread out over a longer time period, less interest is paid on the loan, which lowers the amount of each payment. III. Because the payments are spread out over a shorter time period, more interest is paid on the loan, which lowers the amount of each payment. IV. Because the payments are spread out over a longer time period, more interest must be paid on the loan, which raises the amount of each payment. V. Because the payments are spread out over a longer time period, more principal must be paid on the loan, which raises the amount of each payment
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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How large must each annual payment be if the loan is for $60,000? Assume that the interest rate remains at 12% and that the loan is still paid off over 5 years. Do not round intermediate calculations. Round your answer to the nearest cent.
$
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How large must each payment be if the loan is for $60,000, the interest rate is 12%, and the loan is paid off in equal installments at the end of each of the next 10 years? This loan is for the same amount as the loan in part b, but the payments are spread out over twice as many periods. Do not round intermediate calculations. Round your answer to the nearest cent.
$
Why are these payments not half as large as the payments on the loan in part b?
I. Because the payments are spread out over a longer time period, less interest is paid on the loan, which raises the amount of each payment.
II. Because the payments are spread out over a longer time period, less interest is paid on the loan, which lowers the amount of each payment.
III. Because the payments are spread out over a shorter time period, more interest is paid on the loan, which lowers the amount of each payment.
IV. Because the payments are spread out over a longer time period, more interest must be paid on the loan, which raises the amount of each payment.
V. Because the payments are spread out over a longer time period, more principal must be paid on the loan, which raises the amount of each payment.
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