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
Related questions
Question
Number #4 + #5

Transcribed Image Text:Brief Exercise 9-3 (Algo) Interpret an amortization schedule for an installment note (LO9-2)
Presented below is a partial amortization schedule for a three-year installment note requiring monthly payments of $1,363.13.
(4)
Decrease in
Carrying Value
(2) (3)
(1)
Date
11/1/2024
11/30/2024 $1,363.13
12/31/2024
1,363.13
I
1,363.13
(2)
Cash Paid
10/31/2027
(3)
Interest Expense
Carrying Value x
Interest Rate
$290.00
282.85
9.03
$1,073.13
1,080.28
⠀
1,354.10
(5)
Carrying Value
Prior Carrying Value
- (4)
$43,500.00
42,426.87
41,346.59
⠀
0
1. What is the principal amount of the note?
2. What is the total number of monthly payments?
3. What is the total cash paid over the entire period of the note? (Round your answer to 2 decimal places.)
4. What is the total amount of interest paid over the entire period of the note? (Do not round your intermediate calculations. Round
your answer to 2 decimal places.)
5. The portion of the monthly payment that reduces the carrying value (increases/decreases) over time.
X Answer is not complete.
1. Principal amount
2. Total number of monthly payments
3. Total cash paid
4. Total amount of interest paid
5. The portion of the monthly payment that reduces the carrying value (increases/decreases) over time.
$
$
43,000 X
36✔
49,072.68 ✔
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