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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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
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
What is the rate of interest on a $375,000 25 year fully amortizing loan of the monthly repayments are $2, 291.647
Excel Online Structured Activity: Amortization schedule The data on a loan has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. X Open spreadsheet a. Complete an amortization schedule for a $42,000 loan to be repaid in equal installments at the end of each of the next three years. The interest rate is 9% compounded annually. Round all answers to the nearest cent. Year 1 2 3 Year 1: Year 2: Year 3: I $ $ $ Beginning Balance ||| IV V % Interest % heck My Work $ $ % Payment b. What percentage of the payment represents interest and what percentage represents principal for each of the three years? Round all answers to two decimal places. % Principal % Reset Problem % $ $ $ % Interest $ $ $ Repayment of Principal $ c. Why do these percentages change over time? I. These percentages change over time because even though the total payment is constant the amount of interest paid each year is declining as…
n.c.
Loan payment Determine the equal, annual, end-of-year payment required each year over the life of the loan shown in the following table to repay it fully during the stated term of the loan. (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Principal $7,000 Interest rate 13% ... The amount of the equal, annual, end-of-year payment, CF, is $ Term of loan (years) 29 (Round to the nearest cent.)
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Write out a complete schedule for the amortization of a $50,000 loan with payments every 6 months at 14% interest compounded semiannually for 1 year. Complete the schedule below. Payment number Amount Interest 1 $ $ 2 S $ (Round to the nearest cent as needed.) Applied to principal $ $ Unpaid Balance $ $
Calculate the principal and interest portions of the specified payment for this ordinary annuty, and give the balance remaining after that payment For full marks your answer should be rounded to the nearest cont Payment Principal Interest Balance Payment Frequency Term Number to Find Interest Payment Loan Principal Paid Paid After Payment 4. 0.00 0.00 0.00 $45,000.00 3.50 % compounded quarterly $3,250.97 Semi-annual 8 years

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