The following loan is a simple interest amortized loan with monthly payments. $5000, 9%, 4 years (a) Find the monthly payment. (Give your answer to the nearest cent.) Payment $ (b) Find the total interest for the given simple interest amortized loan. (Give your answer to the nearest cent.) Total interest $

Q: Suppose you borrow $8500 for a term of five years at a simple interest and 8.25% APR. how much is…

A: Interest is the cost of borrowing the money.

Q: What would the monthly payment be? It is a zero amortizing loan

A: Given  Pv=300000*75%=225000 i=6%/12=0.5% n=30*12=360 Pv=pmt*(1-(1+i)^-n)/i

Q: Amount of Loan $175,000 Interest Rate 6% Down Payment $31,000 Increase in Down paymen $6,000

A: Monthly payment is referred to as the payment which is paid on the amount borrowed that has to be…

Q: Find the future value of an annuity due with an annual payment of $14,000 for three years at 4%…

A: Future value of an annuity:  The worth of a sum of money that will be paid on a specified date in…

Q: You borrow a five-year $13,000 loan with monthly payments of S250. What is the annual percentage…

A: PV = 13000, PMT = -250, N = 5*12, FV = 0 use rate function in Excel monthly rate = 0.48%

Q: You take out a 10-year installment loan for $220,000 and will make 40 quarterly payments of…

A: Amortization Table A document that details the monthly loan payment amount is known as an…

Q: Find the annual simple interest rate of a loan, where $800 is borrowed and where $888 is repaid at…

A: Given information: Principal (P) = $800 Amount repaid (A) = $888 Time in year (t) = (4 / 12) =…

Q: You plan to borrow $48,800 at a 6.5% annual interest rate. The terms require you to amortize the…

A: The objective of the question is to calculate the amount of interest paid in the second year of an…

Q: Find the monthly payment (in $) and the total interest (in $) for a mortgage of $46,000 at  5 1/4 %…

A: Monthly payment=4.14Total interest=$42,987.20So, the monthly payment is $4.14 and the total interest…

Q: Find the monthly payment needed to amortize principal and interest for the fixed-rate mortgage. Use…

A: A mortgage refers to a covered loan that is borrowed to purchase a property with the property itself…

Q: You have taken out a $7,500,000 loan with a 4% interest rate, 30 year amortization and ten year…

A: The concept of calculating the remaining loan balance on an amortizing loan involves key components…

Q: Consider a home mortgage of $200,000 at a fixed APR of 6% for 30 years. a. Calculate the monthly…

A: Here, Mortgage Amount (PV) is $200,000 APR (r) is 6% Time Period (n)  is 30 years Compounding Period…

Q: Find the maturity value FV of the given loan amount. (Round your answer to the nearest cent.) $1,200…

A: Future value of an amount is the compounded value where the principal and interest earns further…

Q: Selling price of home: $198,000 Down payment: $60,000 Principal (loan): 138,000 Rate of interest:…

A: Here, To Find: Part A. Payment per $1,000 =??? Part B. Monthly mortgage payment =????

Q: Suppose you take out a mortgage for $170000 at 3.12% interest, compounded monthly, for 15 years.…

A: Monthly payment refers to an amount that is being paid every month for the repayment of the loan…

Q: e the following amortization chart. (solve for principal and monthly mortgage payment) Selling…

A: The given problem can be solved using PMT function in excel. PMT function computes installment…

Q: Use the ordinary interest method to compute the time (in years) for the loan. Round your answer up…

A: Principal (P) = $25,000Rate (R) = 8.6%Interest (I) = $10,750

Q: Use PMT = to determine the regular payment amount, rounded to the nearest cent. The cost of a home…

A: Cost of House is $110,000 Time period is 20 years or 20×12=240 months Interest rate is 3%  Monthly…

Q: Original Terms of Loan:  30 year loan of $127,800 at an interest rate of 6 ½ %. What is the monthly…

A: The equivalent annual cost is the periodic payment made towards the acquisition of an asset or…

Q: Investigate the effect of the term on simple interest amortized auto loans by finding the monthly…

A: Given,  The loan amount is $13,000 Rate is 8 7/8%

Q: The long-term direction indicated by a time series is known as the Select one: Regular Direction…

A: Introduction: A time series is a group of remarks of well-defined data items attained over repeated…

Q: 4 (5) Assume a 30-year mortgage loan for $250,000 for 30 years at an annual rate of 6%. What would…

A: The objective of the question is to calculate the fixed annual and monthly payments for a 30-year…

Q: What is the total cost of interest with the new interest rate?

A: Loan is financial agreement where a person (lender) lends lump-sum money to other person (borrower)…

Q: Complete the following amortization chart by using Table 15.1.  Note: Round your "Payment per…

A: An amortized loan is a borrowing that is repaid slowly. Every payment comprises principal repayment…

Q: Find the monthly payment needed to amortize a typical $105,000 mortgage loan amortized over 30 years…

A: We need to determine the monthly payment as well as the interest component.  Given, Interest rate =…

Q: A loan for $36, 000 was obtained to be paid off over 5 years at 5.5% P. A with monthly repayments. a…

A: First, the present value annuity formula can be employed to determine the monthly payment (PMT).…

Q: Find the monthly payment (in $) and the total interest (in $) for a mortgage of $48,000 at 5% for 40…

A: Monthly payment = P x r x (1 + r)n/[(1 + r)n - 1] where, Principal (P) = 48,000 Monthly interest…

Q: Assume you have taken out a 25-year loan of $177,390 with an annual interest rate of 6.72%,…

A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.