QUESTION 3 What is the yearly interest payment on an interest only loan if the loan is 21 years long and has a 8% interest rate on a principal of 2,000? (Please use at least 5 decimal places and do not use $ symbol in the answer)

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
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Please help me with 3,4&5 asap.

QUESTION 3
What is the yearly interest payment on an interest only loan if the loan is 21 years long and has a 8% interest rate on a principal of 2,000? (Please use at least 5
decimal places and do not use $ symbol in the answer)
QUESTION 4
If you have borrowed 346 dollars using a pure discount loan for 6 years, where you must pay 7% in interest per year, how much must you payback in 6 years?
(Please use at least 5 decimal places and do not use $ symbol in the answer)
QUESTION 5
Assume you wish to borrow $300,000 to buy a house with a 30 year loan. Assume you will make yearly payments and the loan has an interest rate of 3.4%. What
will be the yearly payment amount?
Transcribed Image Text:QUESTION 3 What is the yearly interest payment on an interest only loan if the loan is 21 years long and has a 8% interest rate on a principal of 2,000? (Please use at least 5 decimal places and do not use $ symbol in the answer) QUESTION 4 If you have borrowed 346 dollars using a pure discount loan for 6 years, where you must pay 7% in interest per year, how much must you payback in 6 years? (Please use at least 5 decimal places and do not use $ symbol in the answer) QUESTION 5 Assume you wish to borrow $300,000 to buy a house with a 30 year loan. Assume you will make yearly payments and the loan has an interest rate of 3.4%. What will be the yearly payment amount?
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