Piotr takes out a loan for $3,159.00. The term of the loan is 10 years, and he will make monthly payments. The interest rate onthe loan is 7.775% compounded bi-weekly.a) What is the effective interest rate per payment period?b) If Piotr is going to repay the loan with level payments, what is the monthly payment amount?C) Fill in the first 3 rows of the loan amortization table.

Loan are to be paid by the installments which include interest and principal payments.

Piotr takes out a loan for $3,159.00. The term of the loan is 10 yea is 7.775% compounded bi-weekly. is the effective interest rate per payment period? r is going to repay the loan with level payments, what is the monthly the first 3 rows of the loan amortization table.

Piotr takes out a loan for $3,159.00. The term of the loan is 10 yea is 7.775% compounded bi-weekly. is the effective interest rate per payment period? r is going to repay the loan with level payments, what is the monthly the first 3 rows of the loan amortization table.

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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Concept explainers

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.

Question

Piotr takes out a loan for $3,159.00. The term of the loan is 10 years, and he will make monthly payments. The interest rate on
the loan is 7.775% compounded bi-weekly.
a) What is the effective interest rate per payment period?
b) If Piotr is going to repay the loan with level payments, what is the monthly payment amount?
C) Fill in the first 3 rows of the loan amortization table.

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