Pool-N-Patio World needs to borrow $55,000 to increase its inventory for the upcoming summer season. The owner is confident that he will sell most, if not all, of the new inventory during the summer, so he wishes to borrow the money for only four months. His bank has offered him a simple interest amortized loan at 7.75% interest. (Round your answers to the nearest cent.) (a) Find the size of the monthly bank payment. $ (b) Prepare an amortization schedule for all four months of the loan. Payment Number Principal Portion Interest Portion Total Payment Balance Due 0 $ 1 $ $ $ $ 2 $ $ $ $ 3 $ $ $ $ 4 $ $ $
Pool-N-Patio World needs to borrow $55,000 to increase its inventory for the upcoming summer season. The owner is confident that he will sell most, if not all, of the new inventory during the summer, so he wishes to borrow the money for only four months. His bank has offered him a simple interest amortized loan at 7.75% interest. (Round your answers to the nearest cent.) (a) Find the size of the monthly bank payment. $ (b) Prepare an amortization schedule for all four months of the loan. Payment Number Principal Portion Interest Portion Total Payment Balance Due 0 $ 1 $ $ $ $ 2 $ $ $ $ 3 $ $ $ $ 4 $ $ $
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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Pool-N-Patio World needs to borrow $55,000 to increase its inventory for the upcoming summer season. The owner is confident that he will sell most, if not all, of the new inventory during the summer, so he wishes to borrow the money for only four months. His bank has offered him a simple interest amortized loan at 7.75% interest. (Round your answers to the nearest cent.)
(a) Find the size of the monthly bank payment.
$
(b) Prepare an amortization schedule for all four months of the loan.
$
(b) Prepare an amortization schedule for all four months of the loan.
| Payment Number |
Principal Portion |
Interest Portion |
Total Payment |
Balance Due |
|---|---|---|---|---|
| 0 | $ | |||
| 1 | $ | $ | $ | $ |
| 2 | $ | $ | $ | $ |
| 3 | $ | $ | $ | $ |
| 4 | $ | $ | $ |
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