Marigold browws A from a bank at a norminal rate of B percent compounded monthly to be repaid in 1 year.In the first 6 payments she also wants to make additional equal contribution to the principal in the amount of C. Assumption table Loan Amount A $5,121 Nominal Interest B 7.00% Term of loan (Annual) 1 year Additional principal Contr 46.00 Payment Monthly ?----------------
Marigold browws A from a bank at a norminal rate of B percent compounded monthly to be repaid in 1 year.In the first 6 payments she also wants to make additional equal contribution to the principal in the amount of C. Assumption table Loan Amount A $5,121 Nominal Interest B 7.00% Term of loan (Annual) 1 year Additional principal Contr 46.00 Payment Monthly ?----------------
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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Marigold browws A from a bank at a norminal rate of B percent compounded monthly to be repaid in 1 year.In the first 6 payments she also wants to make additional equal contribution to the principal in the amount of C.
Assumption table
Loan Amount A $5,121
Nominal Interest B 7.00%
Term of loan (Annual) 1 year
Additional principal Contr 46.00
Payment Monthly ?----------------
Transcribed Image Text:36
37
38
39 Amount of Principal paid in the first three payments:
40
41 Balance after the 3rd payment:
42
43 Amount of interest in the last instalment
44
45 Amount of the last payment:
46
47 Total interest paid:
48
Transcribed Image Text:19 Payment Monthly:
20
21 Complete the Amortization table below, making the necessary adjustments to accommodate prepayments in the schedule:
22
Beginning of period
End of Period Loan
Number of periods
Principal
23
Loan Balance
Payment
Interest
Pre-Payment
Balance
24
25
2
26
3
27
4
28
5
29
6
30
7
31
8
32
33
10
34
11
35
12
(Hint: Cell 135 m
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