**Investigate the Effect of the Term on Simple Interest Amortized Auto Loans**This exercise explores the impact of term length on monthly payments and total interest for a loan of $13,000 at an interest rate of 8 and 7/8%. Calculate the monthly payment and total interest for the given terms, rounding all answers to the nearest cent.**(a) 3 years**- **Payment:** $16,461.25- **Total interest:** $3,461.25 - (Note: The red "X" indicates these calculations are incorrect.)**(b) 4 years**- **Payment:** $17,615- **Total interest:** $4,615 - (Note: The red "X" indicates these calculations are incorrect.)**(c) 5 years**- **Payment:** $18,768.75- **Total interest:** $5,768.75 - (Note: The red "X" indicates these calculations are incorrect.)Heightened understanding of this exercise will improve decision-making when considering loan terms, especially regarding how term length influences total repayment amounts and interest paid. It is crucial in effectively managing auto loans and personal finances.

Given, The loan amount is $13,000 Interest rate is 8 7/8%

Investigate the effect of the term on simple interest amortized auto loans by finding the monthly payment and the total interest for a loan of $13,000 at 8 and 7/8% interest if the term is the following. (Round all answers to the nearest cent.) (a) 3 years. Payment $16461.25 Total interest $ 3461.25 (b) 4 years. Payment $17615 Total interest $ 4615 X x x x

Investigate the effect of the term on simple interest amortized auto loans by finding the monthly payment and the total interest for a loan of $13,000 at 8 and 7/8% interest if the term is the following. (Round all answers to the nearest cent.) (a) 3 years. Payment $16461.25 Total interest $ 3461.25 (b) 4 years. Payment $17615 Total interest $ 4615 X x x x

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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Find the monthly payment needed to amortize a typical $105,000 mortgage loan amortized over 30 years at an annual interest rate of 4.5% compounded monthly. (Round your answers to the nearest cent.)$ Find the total interest paid on the loan.$
Use the following amortization chart: Selling price of home $ 96,000 Down payment $ 5,000 Rate of Principal (loan) interest $ 91,000 5.5% Total cost of interest Years Payment per $1,000 $ 5.6779 30 Monthly mortgage payment $ 516.69 Assume the interest rate rises to 7.0%. What is the total cost of interest with the new interest rate? (Use Table 15.1). Note: Round your intermediate calculations and final answer to the nearest cent.
9.) Find the first month of the amortization schedule for a fixed-rate mortgage if the loan amount is $300,000 with an interest rate of 6.0% on a 20-year loan. Annual rate, r (b) Interest payment: 5 (d) Balance of principal 10 2.0% $17.52776 $9.20135 2.5% $ 17.74736 $9.42699 3.0% $17.96869 $ 9.65607 3.5% $ 18.19174 $ 9.88859 4.0% $18.41652 $10.12451 4.5% $18.64302 $10.36384 5.0% $18.87123 $10.60655 5.5% $ 19.10116 $10.85263 6.0% $19.33280 $11.10205 6.5% $19.56615 $11.35480 7.0% $19.80120 $11.61085 7.5% $ 20.03795 $11.87018 8.0% $ 20.27639 $12.13276 8.5% $ 20.51653 $12.39857 9.0% $ 20.75836 $12.66758 $10.14267 (a) Total payment: (use the table above or the payment formula) Terms of Mortgage (in years), t 15 20 $ 6.43509 $ 6.66789 $ 6.90582 $7.14883 $ 7.39688 $ 7.64993 $ 7.90794 $ 8.17083 $ 8.43857 $ 8.71107 $ 8.98828 $ 9.27012 $ 9.55652 $ 9.84740 $ 5.05883 $5.29903 $ 5.54598 $ 5.79960 $ 6.05980 $ 6.32649 $ 6.59956 $ 6.87887 $ 7.16431 $ 7.45573 $ 7.75299 $ 8.05593 $ 8.36440 $ 8.67823 $…
Assume you have taken out a 25-year loan of $177,390 with an annual interest rate of 6.72%, compounded monthly. (a) Determine the payment amount (in dollars), to the nearest cent, on the given loan amount. $ 1222.25 (b) Determine the outstanding balance (in dollars), to the nearest dollar, after 17 years. $
1 Find the total monthly payment, including taxes and insurance, for the following loan. Annual Annual Amount of Loan Term of Loan Taxes Insurance Interest Rate 1 6-% $149,500 10 years $2830 $655 Click the icon to view the real estate amortization table. Complete the table below. Amount of Loan $149,500 0 Interest Rate 1 6-% 2 Term of Loan W Annual Taxes $2830 F Monthly Payment Annual Insurance $655 10 years (Simplify your answer. Round to the nearest cent as needed.) Monthly Payment $
Use the amortization table below to answer the following questions. The loan is for 5 years at 5.5% interest on a $30,000 car. Year Interest Principal Balance2011 $1,516.22 $5,360.20 $24,639.802012 $1,213.86 $5,662.56 $18,977.242013 $894.45 $5,981.97 $12,995.272014 $557.02 $6,319.40 $6,675.872015 $200.55 $6,675.87 $0.00a. How much are the yearly payments? b. If you traded your car in at the end of the 3 rd year (2013) and it was worth $15,500, how much would you get to put towards the new car that you are buying after paying back the bank?
Complete the following amortization chart by using Table 15.1. Note: Round your "Payment per $1,000" answer to 5 decimal places and other answers to the nearest cent. Selling price of home down payment principal (loan) Rate of interest years payment per $1,000 Monthly $160,000 $20,000 3 1/2% 30 TABLE 15.1 Amortization table (mortgage principal and interest per $1,000) Rate Interest Only 10 Year 15 Year 20 Year 25 Year 30 Year 40 Year 2.000 0.16667 9.20135 6.43509 5.05883 4.23854 3.69619 3.02826 2.125 0.17708 9.25743 6.49281 5.11825 4.29966 3.75902 3.09444 2.250 0.18750 9.31374 6.55085 5.17808 4.36131 3.82246 3.16142 2.375 0.19792 9.37026 6.60921 5.23834 4.42348 3.88653 3.22921 2.500 0.20833 9.42699 6.66789 5.29903 4.48617 3.95121 3.29778 2.625 0.21875 9.48394 6.72689 5.36014 4.54938 4.01651 3.36714 2.750 0.22917 9.54110 6.78622 5.42166 4.61311 4.08241 3.43728 2.875 0.23958 9.59848 6.84586 5.48361 4.67735 4.14892 3.50818 3.000 0.25000 9.65607…
A basic ARM is made for $203,000 at an initial interest rate of 6 percent for 30 years with an annual reset date. The borrower believes that the interest rate at the beginning of year (BOY) 2 will increase to 7 percent. a. Assuming that a fully amortizing loan is made, what will the monthly payments be during year 1? b. Based on (a) what will the loan balance be at the end of year (EOY) 1? c. Given that the interest rate is expected to be 7 percent at the beginning of year 2, what will the monthly payments be during year 2? d. What will be the loan balance at the EOY 2? e. What would be the monthly payments in year 1 if they are to be interest only?
How would I complete this?
Find the monthly house payments necessary to amortize the following loan. What are the total payments and total amount of interest paid. 196,000 at 6.89% for 25 years
A fully amortizing mortgage loan is made for $84,000 at 6 percent interest for 25 years. Payments are to be made monthly. Required: a. Calculate monthly payments. b. Calculate interest and principal payments during month 1. c. Calculate total principal and total interest paid over 25 years. d. Calculate the outstanding loan balance if the loan is repaid at the end of year 10. e. Calculate total monthly interest and principal payments through year 10. f. What would the breakdown of interest and principal be during month 50?
Find the monthly payment needed to amortize a typical $220,000 mortgage loan amortized over 30 years at an annual interest rate of 5.3% compounded monthly. (Round your answers to the nearest cent.) = $ b) Find the total interest paid on the loan. = $

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