Question

The interest rate on a $16,000 loan is 10.4% compounded semiannually. Semiannual payments will pay off...

The interest rate on a $16,000 loan is 10.4% compounded semiannually. Semiannual payments will pay off the loan in seven years. (Do not round intermediate calculations. Round the PMT and final answers to 2 decimal places.) a. Calculate the interest component of Payment 10. Interest $ b. Calculate the principal component of Payment 3. Principal $ c. Calculate the interest paid in Year 6. Interest paid $ d. How much do Payments 3 to 6 inclusive reduce the principal balance? Principal reduction $

The interest rate on a $16,000 loan is 10.4% compounded semiannually. Semiannual payments will pay off the loan in seven years. (Do not round intermediate calculations. Round the PMT and final answers to 2 decimal places.)
a.

Calculate the interest component of Payment 10.
  Interest $   

    

b.

Calculate the principal component of Payment 3.
  Principal $   

   

c.

Calculate the interest paid in Year 6.
  Interest paid $   
d.

How much do Payments 3 to 6 inclusive reduce the principal balance?
  Principal reduction $   
Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

1.
366.54

2.
891.03

3.
531.43

4.
3851.87

Below is the amortization schedule

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
What semiannually compounded rate and effective rate of interest are being charged on a $12,000 loan...
What semiannually compounded rate and effective rate of interest are being charged on a $12,000 loan if semiannual payments of $1204.55 will repay the loan in seven years? (Do not round intermediate calculations and round your final answer to 2 decimal places.)   j = % compounded semiannually   f = % effective rate
Semiannual payments are required on an $99,000 loan at 8.0% compounded annually. The loan has an...
Semiannual payments are required on an $99,000 loan at 8.0% compounded annually. The loan has an amortization period of 15 years. Calculate the interest component of Payment 5. (Total: 14 marks) Interim calculations should be to six decimal places; final answer to the nearest cent.
Find the amortization table for a $8,000 loan amortized over 3 years with semiannual payments if...
Find the amortization table for a $8,000 loan amortized over 3 years with semiannual payments if the interest rate is 8.3% per year compounded semiannually. (Round your answers to the nearest cent.) End of Period Payment Made Payment Toward Interest Payment Toward Principal Outstanding Principle 0 8000 1 2 3 4 5 6
Prepare an amortization schedule for a five-year loan of $36,000. The interest rate is 9% per...
Prepare an amortization schedule for a five-year loan of $36,000. The interest rate is 9% per year, and the loan calls for equal annual payments. (Do not round intermediate calculations. Enter all amount as positive value. Round the final answers to 2 decimal places. Leave no cells blank - be certain to enter "0" wherever required.) Year Beginning Balance Total Payment Interest Payment Principal Payment Ending Balance 1 $ $ $ $ $ 2 3 4 5 How much interest...
Prepare an amortization schedule for a five-year loan of $39,000. The interest rate is 9% per...
Prepare an amortization schedule for a five-year loan of $39,000. The interest rate is 9% per year, and the loan calls for equal annual payments. (Do not round intermediate calculations. Enter all amount as positive value. Round the final answers to 2 decimal places. Leave no cells blank - be certain to enter "0" wherever required.) Year Beginning Balance Total Payment Interest Payment Principal Payment Ending Balance 1 $ $ $ $ $ 2 3 4 5 How much interest...
Prepare an amortization schedule for a five-year loan of $47,000. The interest rate is 7% per...
Prepare an amortization schedule for a five-year loan of $47,000. The interest rate is 7% per year, and the loan calls for equal annual payments. (Do not round intermediate calculations. Enter all amounts as positive value. Round the final answers to 2 decimal places. Leave no cells blank - be certain to enter "0" wherever required.) Year Beginning Balance Total Payment Interest Payment Principal Payment Ending Balance 1 $ $ $ $ $ 2 3 4 5 How much interest...
What is the size of payment needed to pay off the following loan scenarios? $180,000 principal,...
What is the size of payment needed to pay off the following loan scenarios? $180,000 principal, monthly payments, 6% interest, 15 year term. $180,000 principal, annual payments, 6% interest, 30 year term.
If your uncle borrows $51,000 from the bank at 9 percent interest over the seven-year life...
If your uncle borrows $51,000 from the bank at 9 percent interest over the seven-year life of the loan. Use Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. a. What equal annual payments must be made to discharge the loan, plus pay the bank its required rate of interest? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Annual payments $10,133.52 b. How much of his...
A $200,000 mortgage at 6.6% compounded semiannually with a 25-year amortization requires monthly payments. The mortgage...
A $200,000 mortgage at 6.6% compounded semiannually with a 25-year amortization requires monthly payments. The mortgage allows the borrower to prepay up to 10% of the original principal once each year. How much will the amortization period be shortened if, on the first anniversary of the mortgage, the borrower makes (in addition to the regular payment) a prepayment of: a. $10,000? (Do not round the intermediate calculations.) The amortization period will be shortened by months. b. $20,000? (Do not round...
Verify that the YTC is 6% compounded semiannually: Semiannual interest $40 # of years to maturity...
Verify that the YTC is 6% compounded semiannually: Semiannual interest $40 # of years to maturity = 7 # of years to first call possibility = 3 Par or face $1,000 Call price $1,070 Current bond price $1,112.82
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT