Prepare an amortization schedule for a five-year loan of $70,000. The interest rate is 9 percent per year, and the loan calls for equal annual payments. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Leave no cells blank - be certain to enter "O" wherever required.) Year Beginning Balance Total Payment Interest Payment Principal Payment Ending Balance 1 3 4 nnid in tho third vear? (Do not round intermediate-calculations LO

Prepare an amortization schedule for a five-year loan of $70,000. The interest rate is 9 percent per year, and the loan calls for equal annual payments. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Leave no cells blank - be certain to enter "O" wherever required.) Year Beginning Balance Total Payment Interest Payment Principal Payment Ending Balance 1 3 4 nnid in tho third vear? (Do not round intermediate-calculations LO

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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Calculate the monthly payments for each of the following $119,600 mortgage loans. Assume no prepayments. a. 30-year fixed at 7.25 percent b. 15-year fixed at 6.25 percent c. 20-year fixed at 6.75 percent Note: Round intermediate computations to at least five (5) decimal places. Click on the table icon to view the Monthly Installment Loan Payment Factor (MILPF) table: a. The monthly payment, PMT, on the 30-year loan is $ (Round to the nearest cent.)
The interest rate on a $115,000 loan is 8.6% compounded semiannually. The monthly payments on the loan are $900. (Round your answers to 2 decimal places.) a. Calculate the interest component of Payment 200. Interest S b. Calculate the principal component of Payment 135. Principal c. Calculate the final payment. Final payment
3. Complete an amortization schedule for a $38,000 loan to be repaid in equal installments at the end of each of the next 3 years. The interest rate is 7% compounded annually. If an amount is zero, enter "0". Do not round intermediate calculations. Round your answers to the nearest cent. Beginning Balance $ % Interest Year 1 2 3 ɔ. What percentage of the payment represents interest and what percentage represents principal for each of the 3 years? Do not round intermediate calculations. Round your answers to two decimal places. % Principal Payment $ % % % % Interest $ % Repayment. of Principal $ Year 1: Year 2: Year 3: % Why do these percentages change over time? I. These percentages change over time because even though the total payment is constant the amount of interest paid each year is declining as the remaining or outstanding balance declines. Remaining Balance $ II. These percentages change over time because even though the total payment is constant the amount of interest paid…
Complete the following from the first three lines of an amortization schedule for the following loan:You borrow $ 330000 with an annual interest rate of 6% over 20 years Starting principal = $ 330000New balance after month 1 payment = New balance after month 2 payment = New balance after month 3 payment =
Compute the size of the final payment for the following loan. Periodic Principal $ Payment $ 9900 (540 Payment Payment Interest Rate Compounding Period Period Made at: 1 month beginning monthly % 9 The size of the final payment is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
The interest rate on a $15,300 loan is 9.7% compounded semiannually. Semiannual payments will pay off the loan in nine years. (Do not round intermediate calculations. Round the PMT and final answers to 2 decimal places.) a. Calculate the interest component of Payment 12. $ b. Calculate the principal component of Payment 5. Principal c. Calculate the interest paid in Year 8. Interest paid d. How much do Payments 5 to 8 inclusive reduce the principal balance? Principal reduction Interest
Develop an amortization schedule for the loan described. (Round your answers to the nearest cent.) $35,000 for 1 year at 12% compounded quarterly Period Payment Interest Balance Reduction Unpaid Balance $35,000 %24 24 24 $0.00 %24 %24 %24 %24 %24 %24 %24 %24 %24 %24 %24 %24 %24 2. 3. 4-
Develop an amortization schedule for the loan described. (Round your answers to the nearest cent.) $210,000 for 3 years at 6% compounded annually Period Payment Interest Balance Reduction Unpaid Balance $210,000 1 $ $ $ $ 2 $ $ $ $ 3 $ $ $ $0.00
Develop an amortization schedule for the loan described. (Round your answers to the nearest cent.) $130,000 for 3 years at 10% compounded annually Period Payment Interest Balance Reduction Unpaid Balance $130, 000 1 $ $ $ $2$$$$3$ $$ $0.00
A $23,970 loan is to be settled by making payments of $6,999 at the end of every six months. The interest is 7.58% compounded monthly. a) Find the number of payments in the term. N = b) Fill in the missing values of the amortization schedule below. Round off your answers to two decimal places. Enter a positive value for all answers. Payment Number 0 1 2 3 4 Payment Amount ($) PMT FA A A A Interest Portion ($) INT FA A $ Principal Portion ($) PRN $ A $ Loan Balance ($) BAL A A $23,970

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