The debt is amortized by equal payments made at the end of each payment interval. Compute (a) the size of the periodic payments; (b) the outstanding principal at them time indicated; (c) the interest paid by the payment following the time indicated for finding the outstanding principal; and (d) the principal repaid by the same payment as in part c Debt Principal $13,000.00 Repayment Period 8 years Payment Interval 3 months Interest Rate 10% Conversion Period semi-annually Outstanding Principal After: 7th payment (a) The size of the periodic payment is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (b) The outstanding principal after the 7th payment is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (c) The interest paid by the 8th payment is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (d) The principal repaid by the 8th payment is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
The debt is amortized by equal payments made at the end of each payment interval. Compute (a) the size of the periodic payments; (b) the outstanding principal at them time indicated; (c) the interest paid by the payment following the time indicated for finding the outstanding principal; and (d) the principal repaid by the same payment as in part c Debt Principal $13,000.00 Repayment Period 8 years Payment Interval 3 months Interest Rate 10% Conversion Period semi-annually Outstanding Principal After: 7th payment (a) The size of the periodic payment is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (b) The outstanding principal after the 7th payment is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (c) The interest paid by the 8th payment is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (d) The principal repaid by the 8th payment is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
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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Transcribed Image Text:The debt is amortized by equal payments made at the end of each payment interval. Compute (a) the size of the periodic payments; (b) the outstanding principal at the
time indicated; (c) the interest paid by the payment following the time indicated for finding the outstanding principal; and (d) the principal repaid by the same payment
as in part c
Debt Principal
$13,000.00
Repayment.
Period
8 years
Payment
Interval
3 months
Interest Rate
10%
Conversion
Period
semi-annually
Outstanding
Principal After:
7th payment
(a) The size of the periodic payment is $
(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
(b) The outstanding principal after the 7th payment is $
(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
(c) The interest paid by the 8th payment is $
(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
(d) The principal repaid by the 8th payment is $
(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
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