Question

You receive a 4-year $11,000 negative amortization loan with an interest rate of 5% p.a., to be repaid in four annual installments. The loan requires that you make total payments of $300 at t = 1, $400 at t = 2, and $300 at t = 3, with the remaining loan balance paid at maturity. What is the total payment amount at t = 4, rounded to the nearest dollar?

Answer #1

Answer is as follows:

You receive a $24,000 5-year constant amortization loan (CAL).
The loan's annual interest rate is 6%. What is the total payment in
year 4, rounded to the nearest dollar?

You receive a $20,000 5-year constant amortization loan (CAL).
The loan's annual interest rate is 10%. What is the total payment
in year 4, rounded to the nearest dollar?

You receive a $16,000 4-year constant payment loan (CPL). The
loan's annual interest rate is 8%. What is the principal portion of
the total payment in year 4, rounded to the nearest dollar?

You receive a $13,000 4-year constant payment loan (CPL). The
loan's annual interest rate is 15%. What is the principal portion
of the total payment in year 4, rounded to the nearest dollar?

Crab State Bank has offered you a $1,250,000 5-year loan at an
interest rate of 10.25 percent, requiring equal annual end-of-year
payments that include both principal and interest on the unpaid
balance. Develop an amortization schedule for this loan. Round your
answers to the nearest dollar.
End of Year Payment Interest (10.25%) Principal Reduction
Balance Remaining
0 $1,250,000
1 $ $ $
2
3
4
5

Crab State Bank has offered you a $1,250,000 5-year loan at an
interest rate of 10.25 percent, requiring equal annual end-of-year
payments that include both principal and interest on the unpaid
balance. Develop an amortization schedule for this loan. Round your
answers to the nearest dollar. End of Year Payment Interest
(10.25%) Principal Reduction Balance Remaining 0 $1,250,000 1 $ $ $
2 3 4 5
can you explain the steps please.

Prepare an amortization schedule for a three-year loan of
$75,000. The interest rate is 8 percent per year, and the loan
agreement calls for a principal reduction of $25,000 every year.
How much total interest is paid over the life of the loan?
(Enter rounded answers as directed, but do
not use rounded numbers in intermediate calculations.
Leave no cells blank. You must enter '0'
for the answer to grade correctly.)
Year
Beginning
Balance
Total
Payment
Interest
Payment
Principal
Payment...

You take out a 20-year loan in the amount of $450,000 at a 4
percent annual rate. The loan is to be paid off by equal monthly
installments over 20 years. Draw an amortization table showing the
beginning balance, total payment, principal repayment, interest
payment and ending balance for each month. How much is the total
interest payment for the first four months? (show only four months
on the table).

Amortization Schedule
Consider a $50,000 loan to be repaid in equal installments at
the end of each of the next 5 years. The interest rate is 9%.
Set up an amortization schedule for the loan. Round your
answers to the nearest cent. Enter "0" if required
Year
Payment
Repayment Interest
Repayment of Principal
Balance
1
$
$
$
$
2
$
$
$
$
3
$
$
$
$
4
$
$
$
$
5
$
$
$
$
Total...

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...

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