The payment necessary to amortize a 5.5% loan of $82,000 compounded annually, with 8 annual payments is$12,944.85. The total of the payments is $103,558.80 with a total interest payment of $21,558.80. The borrower malarger payments of $13,000.00. Calculate (a) the time needed to pay off the loan, (b) the total amount of the paymenand (c) the amount of interest saved.

Given Rate of Interest = 5.5% Loan Amount = $82,000 No. of Periods = 8

Answered: pay $12,944.85. The total of the…

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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pay $12,944.85. The total of the payments is $103,558.80 with a total interest payment of $21,558.80. The borrower ma larger payments of $13,000.00. Calculate (a) the time needed to pay off the loan, (b) the total amount of the paymen and (c) the amount of interest saved.