A design studio received a loan of $4,250 at 3.90% compounded semi-annually to purchase a camera. If they settled the loan in 3 years by making quarterly payments, construct the amortization schedule for the loan and answer the following questions: a. What was the payment size? Round to the nearest cent b. What was the size of the interest portion on the first payment?

A design studio received a loan of $4,250 at 3.90% compounded semi-annually to purchase a camera. If they settled the loan in 3 years by making quarterly payments, construct the amortization schedule for the loan and answer the following questions: a. What was the payment size? Round to the nearest cent b. What was the size of the interest portion on the first payment?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A design studio received a loan of $3,100 at 4.50% compounded semi-annually to purchase a camera. If they settled the loan in 3 years by making quarterly payments, construct the amortization schedule for the loan and answer the following questions:a. What was the payment size?Round to the nearest centb. What was the size of the interest portion on the first payment?Round to the nearest centc. What was the balance of the loan at end of the first year?Round to the nearest centd. What was the size of the interest portion on the last payment?Round to the nearest cent
A design studio received a loan of $6,800 at 4.10% compounded semi-annually to purchase a camera. If they settled the loan in 2 years by making quarterly payments, construct the amortization schedule for the loan and answer the following questions: a. What was the payment size? Round to the nearest cent b. What was the size of the interest portion on the first payment? Round to the nearest cent c. What was the balance of the loan at end of the first year? Round to the nearest cent d. What was the size of the interest portion on the last payment? Round to the nearest cent
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We will use Excel PMT function to calculate the payment Rand then create an amortization schedule for the problem below: The Turners have purchased a house for $250,000. They made an initial down payment of $50,000 and secured a mortgage with interest charged at the rate of 6%/year on the unpaid balance . Interest computations are made at the end of each month . Assume that the loan is amortized over 15 years . Determine the size of each installment such that the loan is amortized at the end of the term Type the raw data of P, r, m, t into cells Calculate i by its definition Calculate n by its definition Calculate R by Excel function PMT. Note : please reference in PMT What will be their total interest payment ?
A company financed the purchase of a machine with a loan at 2.5% compounded monthly. This loan would be settled by making payments of $9,400 at the end of every month for 5 years. a. What was the principal balance of the loan? $0.00 Round to the nearest cent b. What was the total amount of interest charged on the loan? $0.00 Round to the nearest cent
A loan of £4,000 is to be repaid over 5 years by a level annuity payable monthly in arrears. The amount of the monthly payment is calculated on the basis of an interest rate of 1% per month effective. Task : Find the amount of the loan that has been repaid after 30 months. Answer: The loan outstanding after 30 months is a)L(1+i)^t-x∑_(s=1)^t(1-i)^s b)L(1+i)^t-x∑_(s=2)^t(1+i)^s c)x·a_30] d)a_30] Hence a)£1744.12 b)£1644.12 c)£1603.69 d)£1703.69 has been repaid at that point in time. They are multiple-choice questions
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