A loan is amortized over 5 years with monthly payments at a nominal interest rate of 12% compounded monthly. The first payment is 200 and is to be paid one month from the date of the loan. Each succeeding monthly payment will be 1% higher than the prior payment. Calculate the outstanding balance of the loan immediately after the 10th payment is made.

A loan is amortized over 5 years with monthly payments at a nominal interest rate of 12% compounded monthly. The first payment is 200 and is to be paid one month from the date of the loan. Each succeeding monthly payment will be 1% higher than the prior payment. Calculate the outstanding balance of the loan immediately after the 10th payment is made.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 41P

See similar textbooks

Similar questions

If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?
A loan is amortized over five years with monthly payments at a nominal interest rate of 12% compounded monthly. The first payment is 1,000 and is to be paid one month from the date of the loan. Each succeeding monthly payment will be 1% lower than the prior payment. Calculate the outstanding loan balance immediately after the 20th payment is made.
4) Set up an amortization schedule for a $25,000 loan to be repaid in equal installments at the end of each of the next 3 years. Interest rate is 10% compounded annually.a. What percentage of the payment represents interest and what percentage represents principal for each of the 3 years.
A loan of £ 2,120,000 is repayable by equal quarterly payments for 15 years. The effective rate of interest is 6% pa.i. Find the equal quarterly payment amount.ii. Draw the amortization schedule for the loan repayment.iii. What is the interest portion paid on the 10th payment?
Prepare an amortization schedule for a three-year loan of $96,000. The interest rate is 9 percent per year, and the loan calls for equal annual payments. How much total interest is paid over the life of the loan? Year 1: Beginning Balance, Total Payment, Interest Payment, Principal Payment, Ending balance Year 2: Beginning Balance, Total Payment, Interest Payment, Principal Payment, Ending balance Year 3: Beginning Balance, Total Payment, Interest Payment, Principal Payment, Ending balance Total Interest for all 3 Years.
A loan of amount 1000 at a nominal annual interest rate of 12% compounded monthly is repaid by 6 monthly payments, starting one month after the loan is made. The first three payments are amount X each and the final three payments are amount 3X each. Construct the amortization schedule for this loan. Determine the sum of the principal repaid in the third payment and the interest in the fifth payment.
A loan of $10200 is to be amortized with quarterly payments over five years. The interest on the loan is 7.5% per year, paid on the unpaid balance. What is the payoff amount (remaining balance) after the 10th payment?
Prepare an amortization schedule for a three-year loan of $108,000. The interest rate is 9 percent per year and the loan calls for equal annual payments. How much total interest is paid over the life of the loan? Beginnig Total Interest Principal Ending balance payment payment payment balance Total interest_____________________
Complete the first three lines of an amortization schedule for the following loan:You borrow $ 5000 with an annual interest rate of 9% over 7 years Starting principal = $ 5000Principal after month 1 payment = Principal after month 2 payment = Principal after month 3 payment =
6) A loan of 1000 at a nominal annual interest rate of 10% + x compounded monthly is repaid by four monthly payments, starting one month after the loan is made. The first two payments are amount X each and the final two are amount 3X. Construct the amortization schedule for this loan.
A loan of $92,800.00 is repaid by equal payments made at the end of every three months for 3 years. If interest is 8% compounded quarterly, find the size of the quarterly payments and construct an amortization schedule showing the payment number, amount paid, interest paid, principal repaid and outstanding principal balance of each payment. Additionally, include the totals for amount paid, interest paid and principal repaid of the loan.
a. Set up an amortization schedule for a $19,000 loan to be repaid in equal installments atthe end of each of the next 3 years. The interest rate is 8% compounded annually.b. What percentage of the payment represents interest and what percentage representsprincipal for each of the 3 years? Why do these percentages change over time?