Question

Please select the False statement for an amortized loan:

It is a type of loan that requires the borrower to make scheduled, periodic, flat payments. |
||

The portion of the payment that goes towards interest increases over time. |
||

The portion of the payment that goes towards the principal increases over time. |
||

The ending balance of a period is the beginning balance minus the payment made to the principal in that year |

Answer #1

The below statement is false for an amortized loan

**The portion of
the payment that goes towars interest increases over time -
False**

The portion of interest decreases over time since outstanding balance over time decreases

It is a type of loan that requires the borrower to make
scheduled, periodic, flat payments - **True**

The portion of the payment that goes towards the principal
increases over time. - **True**

The ending balance of a period is the beginning balance minus
the payment made to the principal in that year -
**True**

LOAN AMORTIZATION Jan sold her house on December 31 and took a
$10,000 mortgage as part of the payment. The 10-year mortgage has a
11% nominal interest rate, but it calls for semiannual payments
beginning next June 30. Next year Jan must report on Schedule B of
her IRS Form 1040 the amount of interest that was included in the
two payments she received during the year.
a. What is the dollar amount of each payment Jan receives? Round
your...

An amortization table reports the amount of interest and
principal contained within each regularly scheduled payment used to
repay an amortized loan.
Example Amortization Schedule
Year
Beginning
Amount
Payment
Interest
Repayment of
Principal
Ending
Balance
1
2
3
Consider the amount of the interest payments included in each of
the payments of an amortized loan. Which of the following
statements regarding the pattern of the interest payments is
true?
The portion of the payment going toward interest is smaller in...

Jan sold her house on
December 31 and took a $25,000 mortgage as part of the payment. The
10-year mortgage has a 6% nominal interest rate, but it calls for
semiannual payments beginning next June 30. Next year Jan must
report on Schedule B of her IRS Form 1040 the amount of interest
that was included in the two payments she received during the
year.
a. What is the dollar
amount of each payment Jan receives? Round your answer to...

Jan sold her house on December 31 and took a $50,000 mortgage as
part of the payment. The 10-year mortgage has a 9% nominal interest
rate, but it calls for semiannual payments beginning next June 30.
Next year Jan must report on Schedule B of her IRS Form 1040 the
amount of interest that was included in the two payments she
received during the year.
a. What is the dollar amount of each payment Jan receives? Round
your answer to...

Jan sold her house on December 31 and took a $40,000 mortgage as
part of the payment. The 10-year mortgage has a 9% nominal interest
rate, but it calls for semiannual payments beginning next June 30.
Next year Jan must report on Schedule B of her IRS Form 1040 the
amount of interest that was included in the two payments she
received during the year.
a. What is the dollar amount of each payment Jan receives? Round
your answer to...

Jan sold her house on December 31 and took a $30,000 mortgage
as part of the payment. The 10-year mortgage has a 6% nominal
interest rate, but it calls for semiannual payments beginning next
June 30. Next year Jan must report on Schedule B of her IRS Form
1040 the amount of interest that was included in the two payments
she received during the year.
a. What is the dollar amount of each payment Jan receives? Round
your answer to...

Upon graduation, Jeffrey Feldhusen borrows $14,100 to finance a
late model used car. The loan is made by a family member who wishes
to have equal annual payments at 10 % over 4 years.
How much are the annual payments?
How many total dollars of interest does Jeffrey pay over the life
of the loan?
How much of the second payment goes to pay interest?
How much of the second payment goes to pay principal?
Develop a table with the...

Upon graduation, Jeffrey Feldhusen borrows $15,000 to finance a
late model used car. The loan is made by a family member who wishes
to have equal annual payments at 11 % over 4 years.
a) How much are the annual payments?
b) How many total dollars of interest does Jeffrey pay over the
life of the loan?
c) How much of the second payment goes to pay interest?
d) How much of the second payment goes to pay principal?
e)...

eBook Problem Walk-Through
Jan sold her house on December 31 and took a $50,000 mortgage as
part of the payment. The 10-year mortgage has a 12% nominal
interest rate, but it calls for semiannual payments beginning next
June 30. Next year Jan must report on Schedule B of her IRS Form
1040 the amount of interest that was included in the two payments
she received during the year.
a. What is the dollar amount of each payment Jan
receives? Round...

1) i. What is an amortizing loan?
A) A loan in which the borrower only pays principal.
B) A loan in which portions of both principal and interest are
paid in every period.
C) A loan in which the interest portion of payments increase
over time while the principal decreases.
D) A loan in which the borrower pays interest once the principal
balance is depleted.
ii) What is the payment on a 60-month, $10000 car loan with APR
of 9.13%?...

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