Locust Inc. owes $18,000.00 to be repaid by monthly payments of $490.00. Interest is 4% compounded monthly. (a) How many payments will Locust Inc. have to make? (b) How much interest is included in the 11th payment? (c) How much of the principal will be repaid in the 8th payment period? (d) Construct a partial amortization schedule showing details of the first three payments, the last three payments, and totals. BETE (a) The number of the monthly payment is Round the final answer up to the nearest whole number. Round all intermediate values to six decimal places as needed.)
Locust Inc. owes $18,000.00 to be repaid by monthly payments of $490.00. Interest is 4% compounded monthly. (a) How many payments will Locust Inc. have to make? (b) How much interest is included in the 11th payment? (c) How much of the principal will be repaid in the 8th payment period? (d) Construct a partial amortization schedule showing details of the first three payments, the last three payments, and totals. BETE (a) The number of the monthly payment is Round the final answer up to the nearest whole number. Round all intermediate values to six decimal places as needed.)
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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Transcribed Image Text:Locust Inc. owes $18,000.00 to be repaid by monthly payments of $490.00. Interest is 4% compounded monthly.
(a) How many payments will Locust Inc. have to make?
(b) How much interest is included in the 11th payment?
(c) How much of the principal will be repaid in the 8th payment period?
(d) Construct a partial amortization schedule showing details of the first three payments, the last three payments,
and totals.
ACCEM
(a) The number of the monthly payment is
(Round the final answer up to the nearest whole number. Round all intermediate values to six decimal places
as needed.)
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