Question

John's Auto Repair just took out a $52,000, 10-year, 8%, FIXED-PRINCIPAL PAYMENT load from the bank....

John's Auto Repair just took out a $52,000, 10-year, 8%, FIXED-PRINCIPAL PAYMENT load from the bank. Payments are made annually. What is the amount of the loan payment in year 5?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Amount borrowed = $52,000
Period of loan = 10 years
Interest rate = 8%

Annual payment toward principal = Amount borrowed / Period of loan
Annual payment toward principal = $52,000 / 10
Annual payment toward principal = $5,200

Year 5:

Principal Paid = $5,200
Interest Paid = $2,496

Loan Payment = Principal Paid + Interest Paid
Loan Payment = $5,200 + $2,496
Loan Payment = $7,696

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1) Jens just took out a loan from the bank for 79,702 dollars. He plans to...
1) Jens just took out a loan from the bank for 79,702 dollars. He plans to repay this loan by making a special payment to the bank of 4,130 dollars in 4 years and by also making equal, regular annual payments of X for 8 years. If the interest rate on the loan is 12.57 percent per year and he makes his first regular annual payment in 1 year, then what is X, Jens’s regular annual payment? 2) Theo just...
Sang just took out a loan from the bank for 67,668 dollars. He plans to repay...
Sang just took out a loan from the bank for 67,668 dollars. He plans to repay this loan by making a special payment to the bank of 29,855 dollars in 2 months and by also making equal, regular monthly payments of X. If the interest rate on the loan is 1.35 percent per month, he makes his first regular monthly payment later today, and he makes his last regular monthly payment made in 4 months from today, then what is...
Youssef just took out a loan from the bank for 78,090 dollars. He plans to repay...
Youssef just took out a loan from the bank for 78,090 dollars. He plans to repay this loan by making a special payment to the bank of 19,680 dollars in 2 months and by also making equal, regular monthly payments of X. If the interest rate on the loan is 0.63 percent per month, he makes his first regular monthly payment later today, and he makes his last regular monthly payment made in 4 months from today, then what is...
10. Five years ago you took out a 5/1 adjustable rate mortgage and the five-year fixed...
10. Five years ago you took out a 5/1 adjustable rate mortgage and the five-year fixed rate period has just expired. The loan was originally for $ 250,000 with 360 payments at 5 % APR, compounded monthly. a. Now that you have made 60 payments, what is the remaining balance on the loan? b. If the interest rate increases by 1 %, to 6 % APR, compounded monthly, what will be your new payments?
Your firm just acquired a bank loan in the amount of $30,000 at 6% APR. Equal...
Your firm just acquired a bank loan in the amount of $30,000 at 6% APR. Equal payments are to be made annually at the end of each year for three years. Construct the amortization table. Year# Owed Annual Payment Principal Reduction Interest New Principal 1 $30,000.00 2 3 Total
Five years ago you took out a 5/1 adjustable rate mortgage and the five-year fixed rate...
Five years ago you took out a 5/1 adjustable rate mortgage and the five-year fixed rate period has just expired. The loan was originally for $291,000 with 360 payments at 4.1% APR, compounded monthly. a. Now that you have made 60 payments, what is the remaining balance on the loan? b. If the interest rate increases by 1.2%, to 5.3% APR, compounded monthly, what will your new payments be?
7. You just find your dream car and get an auto loan of $20,000 from a...
7. You just find your dream car and get an auto loan of $20,000 from a local bank. It requires fixed monthly payments over 5 consecutive years. The first monthly payment is due in one month. If the interest rate on the auto loan is 8%, calculate your monthly payment. (assume no down payment) a. $326 b. $346 c. $366 d. $386 e. $406 8. Your local bank offers you a CD that if you deposit $1,000 today, you will...
A borrower borrows on a five year loan $5,000 from a bank at 10% and will...
A borrower borrows on a five year loan $5,000 from a bank at 10% and will pay back the loan in five equal $ payments (annually) at the end of each time period. How much is each equal payment, how much principal and interest is paid back, and how much interest is paid back?  
8. When you purchased your​ house, you took out a​ 30-year annual-payment mortgage with an interest...
8. When you purchased your​ house, you took out a​ 30-year annual-payment mortgage with an interest rate of 10 % per year. The annual payment on the mortgage is $ 10,918. You have just made a payment and have now decided to pay the mortgage off by repaying the outstanding balance. a. What is the payoff amount if you have lived in the house for 10 years​ (so there are 20 years left on the​ mortgage)? b. What is the...
Exactly 18 years ago, you took out a $550,000 30-year mortgage with monthly payments and an...
Exactly 18 years ago, you took out a $550,000 30-year mortgage with monthly payments and an APR of 10% compounded monthly. You have just made your 216th payment. What is the outstanding balance on your loan?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT