Chapter 7A, Problem 3EA

Calculate payments using time value of money concepts. (LO 8). For each of the following, calculate the payment each loan would require. Assume the payments are made at the end of the period in each case. Interest rates are annual rates.

1. 1. Principal = $30,000; interest rate = 5%; term = 5 years; payments = annual
2. 2. Principal = $30,000; interest rate = 8%; term = 5 years; payments = annual
3. 3. Principal = $30,000; interest rate = 8%; term = 10 years; payments = annual
4. 4. Principal = $30,000; interest rate = 8%; term = 10 years; payments = semi-annual
5. 5. Principal = $30,000; interest rate = 12%; term = 2 years; payments = monthly