Locust Inc. owes $20,000.00 to be repaid by monthly payments of $510.00. Interest is 6% compounded monthly.(a)How many payments will Locust Inc. have to make?(b)How much interest is included in the10thpayment?(c)How much of the principal will be repaid in the9thpayment period?(d)Construct a partial amortization schedule showing details of the first three payments, the last three payments, and totals.

Since you have asked a multiple subpart question, we will answer the first three subparts for you.…

Answered: Locust Inc. owes $20,000.00 to be…

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)	How many payments will Locust Inc. have to make?
(b)	How much interest is included in the 10th payment?
(c)	How much of the principal will be repaid in the 9th payment period?
(d)	Construct a partial amortization schedule showing details of the first three payments, the last three payments, and totals.