Question

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. |

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 | $ |

Answer #1

1.

366.54

2.

891.03

3.

531.43

4.

3851.87

Below is the amortization schedule

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f = % effective rate

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Interim calculations should be to
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Find the amortization table for a $8,000 loan amortized over 3
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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
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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...

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Enter all amount as positive value. Round the final answers to 2
decimal places. Leave no cells blank - be certain to enter "0"
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Prepare an amortization schedule for a five-year loan of
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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
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$180,000 principal, monthly payments, 6% interest, 15 year
term.
$180,000 principal, annual payments, 6% interest, 30 year
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Annual payments $10,133.52
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A $200,000 mortgage at 6.6% compounded semiannually with a
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a.
$10,000? (Do not round the intermediate
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The amortization period will be shortened by
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b.
$20,000? (Do not round...

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interest $40 # of years to maturity = 7 # of years to first call
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price $1,112.82

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