A debt pf $47,000 is repaid by payments of $4,333 made at the end of every sixmonths.Interest is 8.6% compounded quarterly.Your calculator must be set to 2 decimals before doing any calculations that aregoing to involve Amortization.a.) What is the value of 'p', the periodic interest rate?(Correct to exactly 8 decimal places.)b.) What is the number of payments required to retire the loan?(Rounded up to the next whole payment.)(Your answer must be a whole number.)c.) What is the (interest) cost of the debt for the first three years? (6 payments)(Use the BAII+: Do not calculate this by hand.)Jhyd.) What is the value of the final (partial) payment?The final payment required to make the outstanding balance equal exactly zero.(Use the BAII+: Do not calculate this by hand.)

A loan agreement is a critical document that outlines the terms and conditions of a loan, protecting…

Answered: A debt pf $47,000 is repaid by payments…

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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A debt pf $42,000 is repaid by payments of $3,872 made at the end of every six months. Interest is 4.55% compounded quarterly. Your calculator must be set to 2 decimals before doing any calculations that are going to involve Amortization. a.) What is the value of 'p', the periodic interest rate? (Correct to exactly 8 decimal places.) b.) What is the number of payments required to retire the loan? (Rounded up to the next whole payment.) (Your answer must be a whole number.) c.) What is the (interest) cost of the debt for the first two years? (4 payments) (Use the BAIL+: Do not calculate this by hand.) d.) What is the value of the final (partial) payment? The final payment required to make the outstanding balance equal exactly zero. (Use the BAll+: Do not calculate this by hand.) Next page
Assume that interest is the only finance charge. Use financial calculator to answer the questions.How much interest would be paid on a $8,000 installment loan to be repaid in 48 monthly installments of $210.72? Round the answer to 4 decimal places. % per monthWhat is the APR on this loan? Round the answer to 2 decimal places. %
A loan is to be amortized by n level annual payments of X where n > 5. You are given (1) The amount of interest in the first payment is 604.00 (2) The amount of interest in the third payment is 593.75 (3) The amount of interest in the fifth payment is 582.45 Calculate X.
Assume that interest is the only finance charge. Use financial calculator to answer the questions. How much interest would be paid on a $8,000 installment loan to be repaid in 48 monthly installments of $211.10? Round the answer to 4 decimal places. % per month What is the APR on this loan? Round the answer to 2 decimal places. %
5. Assume you deposit RM1,000 into a savings account every three months that compounds interest semiannually. a. Determine the payment period (PP) and compounding periods (CP) b. State the payment period greater than or less than the compounding period.
Find the payment necessary to amortize a 7% loan of $2200 compounded quarterly, with 6 quarterly payments. Find (a) the payment necessary to amortize the loan and (b) the total payments and the total amount of interest paid based on the calculated quarterly payments. Then create an amortization table to find (c) the total payments and total amount of interest paid based upon the amortization table. a. The quarterly payment needed to amortize this loan is $ b. The total amount of the payments is $ The total amount of interest paid is $ c. The total payment for this loan from the amortization table is $ The total interest from the amortization table is $ Keep getting it wrong when I reach point b... need help thx
Prepare an amortization schedule for a three-year loan of $117,000. The interest rate is 8 percent per year, and the loan calls for equal annual payments. How much total interest is paid over the life of the loan? Note: Leave no cells blank. Enter '0' where necessary. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Year 1 2 3 $ Beginning Balance 117,000.00 Total Payment Total interest Interest Payment Principal Payment Ending Balance
Q)The Central Bank pays 3.6% compounded monthly on certain types of deposits. What is the effective annual rate of interest? Note: to receive the full mark, you will keep all 8 decimal places when performing calculations, express your final answer in percentage with 8 decimal places, and there is no need to include any symbols such as % in your final answer. Solve this economic
You apply for a loan of $151,000 with the following terms: A 7-year loan with semi-annual payments of $14,800 (paid at the end of each period). Based on this information, what is the APR of this loan? (Note: All answers are rounded to two decimals) 4.53% 4.82% 8.42% 9.06% 8.78%
Prepare the first row of a loan amortization schedule based on the following information. The loan amount is for $17,900 with an annual interest rate of 09.00%. The loan will be repaid over 22 years with monthly payments. 1. What is the Loan Payment? 2. What portion of this payment is Interest? 3. What portion of this payment is Principal? 4. What is the Loan balance after first monthly payment?
Develop a complete amortization table for a loan of $4500, to be paid back in 24 uniform monthly installments, based on an interest rate of 6%. The amortization table must include the Payment Number, Principal Owed (beginning of period), Interest Owed in Each Period, Total Owed (end of each period), Principal Paid in Each Payment, Uniform Monthly Payment Amount. You must also show the equations used to calculate each column of thetable. You are encouraged to use spreadsheets. The entire table must be shown.
Given the annual interest rate and a line of an amortization schedule for that loan, complete the next line of the schedule. Assume that payments are made monthly. Annual Interest Rate Payment 6.7% $468.39 Fill out the amortization schedule below. Interest Paid $42.28 Annual Interest Rate 6.7% Interest Paid $42.28 $ (Round to the nearest cent as needed.) Payment $468.39 Paid on Principal $426.11 Paid on Principal $426.11 $ Balance $7,150.14 Balance $7,150.14 $

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