Explanation Given Information: Payment frequency is 1 month, time duration is 25 years, nominal rate of return is 7.32 % and interest is compounded monthly and present value amount is $ 200 , 000 . Formula used: The formula to compute the amortization payment is, Amortization payment = P V × i 1 − ( 1 + i ) − n Where, PV is the present value, i is the interest rate per period, n is the number of periods. Calculation: Consider that Payment frequency is 1 month, time duration is 25 years, nominal rate of return is 7.32 % and interest is compounded monthly and present value amount is $ 200 , 000 . The rate period is 0.61 % or 0.0061 ( 7.32 % ÷ 12 period per year ) . The number of periods is 300 ( 25 years × 12 period per year )

Contemporary Mathematics for Business & Consumers

8th Edition

ISBN: 9781305585447

Author: Robert Brechner, Geroge Bergeman

Publisher: Cengage Learning

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Chapter 12, Problem 35AT

To determine

To calculate: The amount of loan payment to be made at the end of every month to Sandpiper Savings and loan at 7.32% interest compounded monthly for the loan of $200,000 in 25 years.

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Chapter 12, Problem 34AT

Chapter 13.I, Problem 1TIE

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Chapter 12 Solutions

Contemporary Mathematics for Business & Consumers

Ch. 12.I - Freeport Bank is paying 8% interest compounded...Ch. 12.I - Vista Savings Loan is paying 6% interest...Ch. 12.I - Katrina Byrd invested $250 at the end of every...Ch. 12.I - Use Table 12-1 to calculate the future value of...Ch. 12.I - Use Table 12-1 to calculate the future value of...Ch. 12.I - Use Table 12-1 to calculate the future value of...Ch. 12.I - Use Table 12-1 to calculate the future value of...Ch. 12.I - Use Table 12-1 to calculate the future value of...Ch. 12.I - Use Table 12-1 to calculate the future value of...Ch. 12.I - Use Table 12-1 to calculate the future value of...

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The amount of loan payment to be made at the end of every month to Sandpiper Savings and loan at 7.32 % interest compounded monthly for the loan of $ 200 , 000 in 25 years.

Solution Summary: The author calculates the amount of loan payment to be made at the end of every month to Sandpiper Savings and loan at 7.32% interest compounded monthly.

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To calculate: The amount of loan payment to be made at the end of every month to Sandpiper Savings and loan at 7.32% interest compounded monthly for the loan of $200,000 in 25 years.

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Chapter 12 Solutions