Loan payment Determine the equal, annual, end-of-year payment required each year over the life of the loan shown in thefollowing table to repay it fully during the stated term of the loan. (Click on the icon located on the top-right corner of the data tablebelow in order to copy its contents into a spreadsheet.)Principal$42,000Interest rate14%wwwThe amount of the equal, annual, end-of-year payment, CF, is $Term of loan (years)20(Round to the nearest cent.)

Principal = $42,000Interest rate = 14%/100 = 0.14 in decimalsTerm of loan = 20 yearsTo find: CF

Answered: Loan payment Determine the equal,…

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. Complete an amortization schedule for a $19,000 loan to be repaid in equal installments at the end of each of the next 3 years. The interest rate is 6% compounded annually. If an amount is zero, enter "0". Do not round intermediate calculations. Round your answers to the nearest cent Beginning Balance Year Payment Repayment of Principal Remaining Balance Interest 1 $ 2 3 b. What percentage of the payment represents interest and what percentage represents principal for each of the 3 years? Do not round intermediate calculations. Round your answers to two decimal places. % Interest % Principal Year 1: % % Year 2: % % Year 3: % % Why do these percentages change over time? 1. These percentages change over time because even though the total payment is constant the amount of interest paid each year is declining as the remaining or outstanding balance declines. II. These percentages change over time because even though the total payment is constant the amount of interest paid each year is…
Use the actuarial method to find the payoff amount for the loan paid in full before its due date. Amount Financed: $9000 Regular Monthly Payment. $189 02 Total Number of Payments scheduled: 60 Loan repaid in full instead of making: 12th payment
For a repayments schedule that starts at the end of year 5 at $A and proceeds for years 6 through 40 as $2A, $3A...... What is the value A if the principal of this loan is $100,000.00 and the interest rate is 10% compounded annually?
Table 1-1 details three different loan repayment plans described below. Each plan repays a $6,000 loan in 6 years at 10 % per year interest. A - Plan 1: Simple interest paid annually, principal repaid at end. The accrued interest is paid each year, and the entire principal is repaid at the end of year 6. B - Plan 2: Compound interest and portion of principal repaid annually. The accrued interest and one-sixth of the principal (or $1000) is repaid each year. The outstanding loan balance decreases each year, so the interest for each year decreases. C- Plan 3: Equal payments of compound interest and principal made annually. Equal payments are made each year with a portion going toward principal repayment and the remainder covering the accrued interest. Since the loan balance decreases at a rate slower than that in plan 2 due to the equal end-of-year payments, the interest decreases, but at a slower rate. End Of Year Interest Owed For Year Total Owed At End-Of-Year TABLE 1-1 End-Of-Year…
Find i (the rate per period) and n (the number of periods) for the following loan at the given annual rate. Semiannual payments of $3,800 are made for 17 years to repay a loan at 6.4% compounded semiannually. |(Type an integer or decimal rounded to four decimal places as needed.)
You have obtained a loan from the bank for $50,000 at 11.0% compounded quarterly. You will have the loan paid off in 15 years. Your quarterly payment will be $1,900.00. 1. a) Label the amortization schedule (in words not symbols b) Construct a partial amortization schedule showing the details of the first payment
7
Prepare an amortization schedule for a three-year loan of $96,000. The interest rate is 9 percent per year, and the loan calls for equal annual payments. How much total interest is paid over the life of the loan? (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 Total Payment Total interest Interest Payment Principal Payment Ending Balance
Select the correct answer and explain A loan of $ 45,000 is obtained at 17.5% per annum, to be paid in 2.5 years with annuities payable each end of the semester. Calculate the partial amortization at the end of the third period if the annuity is $ 8,900.50. a. $ 5,769.20 b. $ 5,869.52 c. $ 6,258.34 d. $ 5,928.65
Use the table to find the monthly payments on the given loan. Amount Rate Time $63,000 12% 3 years table of monthly payments on a $1,000 loan. The monthly payments for this loan are? (Type an integer or a decimal.)
Prepare an amortization schedule for a five-year loan of $70,000. The interest rate is 9 percent per year, and the loan calls for equal annual payments. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Year 1 2 3 4 5 $ Beginning Balance 70,000.00 $ 58,421.11 X 45,800.12 X 32,043.24 x 16,094.24 x > Answer is complete but not entirely correct. Total Interest Payment Payment 17,996.47 $ 17,996.47✔ 17,996.47 ✔ 17,996.47 ✔ 17,996.47✔ Answer is complete and correct. 6,300.00 $ 5,257.90 X 4,122.01 X Total interest paid $ 19,982.35 2,884.90 X 1,444.43 x Principal Payment Ending Balance How much total interest is paid over the life of the loan? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. 11,696.47 $ $ 58,303.53 12,738.57✔ 57,261.43 X 13,874.46 X 56,125.54 X 15,111.57 X 54,888.43 X 16,552.04 X 53,447.96 X
4. Establish loan amortization schedules for 3-year loan of $20,000 (initial loan) with equal payments at the end of each year. The interest rate is 5 percent per year. i NOTE: PLEASE SHOW HOW YOU COMPUTE EACH OF THE ITEMS.

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