Your company has just taken out a 1-year installment loan for $72,500 at a nominal rate of 11.0%but with equal end-of-month payments. What is the ratio of principal payment to the total paymentin the 2nd month? (Hard)A) 81.63%B) 73.67%C) 90.45%D) 77.55%E) 85.93%

First we need to use loan amortization formula below to calculate monthly payment. where P=Loann…

Answered: Your company has just taken out a…

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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You have taken out a loan of $11,000.00 for 4 years at an APR of 4.6% (loans are always compounded and paid back monthly). Fill in the table below showing the first lines of the Armotization Table for this loan rounding all answers to the closest cent (i.e. to 2 decimal places): Payment number Payment amount Principal Amount Interest Balance 0) $11,000.00 1) $ $ $ 2) same as above $ $ 3) same as above $ $ Submit Question
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Your company has just taken out a 1-year installment loan for $72,500 at a nominal rate of 11.0% but with equal end-of-month payments. What is the ratio of principal payment to the total payment in the 2nd month? (Hard) A) 81.63% B) 73.67% C) 90.45% D) 77.55% E) 85.93%