Tony has taken a $12,000 car loan. He wants to pay off this debt quickly, so he chooses to pay it in just two years. The loan has a 12% nominal interest rate, compounded quarterly.a. He will make quarterly payments. Draw the cash flow diagram. b. What is his quarterly payment?c. Complete the amortization table, showing the amounts for each payment, interest, and principal.
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- Piotr takes out a loan for $3,159.00. The term of the loan is 10 years, and he will make monthly payments. The interest rate on the loan is 7.775% compounded bi-weekly. a) What is the effective interest rate per payment period? b) If Piotr is going to repay the loan with level payments, what is the monthly payment amount? C) Fill in the first 3 rows of the loan amortization table.Sam takes out a loan for $3,685.50. The term of the loan is 7 years, and she will make bi-weekly payments. The interest rate on the loan is 3.475% compounded monthly. a) What is the effective interest rate per payment period? b) If Sam is going to repay the loan with level payments, what is the monthly payment amount? c) Fill in the first 3 rows of the loan amortization table. d) What would the nominal interest rate (compounded monthly) have to be if the bi-weekly (level) payment amounts were $24.69?William borrows $22,000 to buy a car. He will repay the loan through 4 years of equal monthly payments and an annualized interest rate of 4.3%. Think about payment #32 of the loan obligation. How much of this payment will be principal? Enter your answer as a positive number (in dollars), and round to the nearest dollar.
- George borrows $43,000 to buy a car. He will repay the loan through 4 years of equal monthly payments and an annualized interest rate of 3.9%. Think about payment #44 of the loan obligation. How much of this payment will be interest? Enter your answer as a positive number (in dollars), and round to the nearest dollar.A man plans to take a vacation in 5 years. He wants to buy a certificate of deposit for $1300 that he will cash in for the trip. What is the minimum annual interest rate he must obtain on the certificate if he needs at least $1500 for the trip? Assume that the interest on the loan is computed using simple interest. The rate he must obtain isTim wants to borrow $400,000 from Bank of America on a 30-year mortgage at 6% interest rate. a. What would Tim's monthly payments be on his mortgage? b. Amortize the loan and determine: Interest expense for the first quarter of the loan. Cash flows for the first quarter of the loan. Loan balance at the end of the first quarter of the loan. Please show your calculations, part b is very important. If you are using the TVM chart, please state whether you used PVoA, FVoA, PVoSA, FVoSA.
- Michael Sanchez purchased a condominium for $89,000. He made a 20% down payment and financed the balance with a 30 year, 5% fixed-rate mortgage. (Round your answers to the nearest cent. Use this table, if necessary.) (a): What is the amount (in $) of the monthly principal and interest portion, PI, of Michael's loan? $ (b): COnstruct an amortization schedule for the first four months of Michael's mortgage. (attached is the chart have to fill out for anwser) (C): If the annual property taxes are $1,640 and the hazard insurance premium is $730 per year, what is the total monthly PITI of Michael's loan (in $)? $1. Jeremiah has 3 years to repay a $55000 personal loan at 6.55% per year, compounded monthly. a. Calculate the monthly payment and show all variables used for TVM Solver. b. Calculate the total amount Jeremiah ends up paying. c. Calculate the amount of interest Jeremiah will pay over the life of the loan.Michael Sanchez purchased a condominium for $62,000. He made a 20% down payment and financed the balance with a 30 year, 5% fixed-rate mortgage. (Round your answers to the nearest cent. Use this table, if necessary.) (a) What is the amount (in $) of the monthly principal and interest portion, PI, of Michael's loan? $ (b) Construct an amortization schedule for the first four months of Michael's mortgage. PaymentNumber MonthlyPayment(in $) MonthlyInterest(in $) Portion Usedto ReducePrincipal(in $) LoanBalance(in $) 0 $ 1 $ $ $ $ 2 $ $ $ $ 3 $ $ $ $ 4 $ $ $ $ (c) If the annual property taxes are $1,670 and the hazard insurance premium is $700 per year, what is the total monthly PITI of Michael's loan (in $)? $ Table 14-1: Monthly Payments to Amortize Principal and Interest per $1,000 Financed Monthly Payments(Necessary to amortize a loan of $1,000) InterestRate (%) 5Years 10Years 15Years 20Years 25Years 30Years 35Years 40Years…
- Michael Sanchez purchased a condominium for $74,000. He made a 20% down payment and financed the balance with a 30 year, 5% fixed-rate mortgage. (Round your answers to the nearest cent. Use this table, if necessary.) (a) What is the amount (in $) of the monthly principal and interest portion, PI, of Michael's loan? $ (b) Construct an amortization schedule for the first four months of Michael's mortgage. PaymentNumber MonthlyPayment(in $) MonthlyInterest(in $) Portion Usedto ReducePrincipal(in $) LoanBalance(in $) 0 $ 1 $ $ $ $ 2 $ $ $ $ 3 $ $ $ $ 4 $ $ $ $ (c) If the annual property taxes are $1,640 and the hazard insurance premium is $670 per year, what is the total monthly PITI of Michael's loan (in $)? $Paul borrowed $500000 from the bank for mortgage. The interest rate is 7.8% compounded monthly. a. Convert the interest rate above as the effective interest rate. b. To pay off the mortgage debt within 30 years, how much is his monthly payment (to the nearest cent)? c. Build the amortization schedule based on part b, including the correct final payment to make the final balance equal to zero. d. Paul actually may afford $3400 every month as the mortgage payment. How many years+months will he need to pay off the mortgage? e. Build the amortization schedule based on part d, including the correct final payment to make the final balance equal to zero. f. Find outYou plan to borrow $25,000 at a 3.4% annual interest rate compounded annually. The terms require you to amortize the loan with 5 equal payments each made at the end of each year. You would like to construct an amortization schedule showing details of the payments. Answer the following questions, and choose the closest answer from the possible choices following each question: 1.To find the interest repaid in period 1 only in the financial calculator amortization worksheet, you enter P2 = 2.To find the interest repaid in period 1 only in the financial calculator amortization worksheet, you enter P1 = 3.How much total interest is repaid in periods 1 to 2?