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.
Semiannual payments are required on an $90,000 loan at 8.0% compounded annually. The loan has an...
Semiannual payments are required on an $90,000 loan at 8.0% compounded annually. The loan has an amortization period of 15 years. Calculate the interest component of Payment 5.   Interim calculations should be to six decimal places; final answer to the nearest cent. 2. Raj has accumulated $500,000 in his RRSP and is going to purchase a 20-year annuity from which he will receive month-end payments. The money used to purchase the annuity will earn 5% compounded monthly. If payments grow...
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
Find the amortization table for a $23,000 loan amortized over 3 years with semiannual payments if...
Find the amortization table for a $23,000 loan amortized over 3 years with semiannual payments if the interest rate is 6.1% 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 23000 1 2 3 4 5 6
Givens, Hong, and Partners obtained a $7200 term loan at 8.7% compounded annually for new boardroom...
Givens, Hong, and Partners obtained a $7200 term loan at 8.7% compounded annually for new boardroom furniture. Prepare a complete amortization schedule in which the loan is repaid by equal semiannual payments over three years. (Round your answers to the nearest cent. Do not round the intermediate calculations.) Payment Interest Principal Principal number Payment $ portion $ portion $ balance $ 0    --   -- -- 7200.00 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.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT