SunBlush Technologies takes out a $16,000 loan that charges 5.25% interest compounded semi-annually has fixed quarterly payments of $650 Answer the following questions For full marks your answer should be rounded to the nearest cent. a) How long will it take to pay off the loan? Your answer should be rounded to the appropriate whole period. 0 years, 0 months b) What is the principal component of the 20th payment? Principal = $0.00 c) What is the interest component of the 9th payment? Interest = $0.00 d) How much is the principal reduced by payments 15 through 187 Principal = $0.00 e) What is the total interest paid for payments 1 through 4? Interest = $ 0.00

SunBlush Technologies takes out a $16,000 loan that charges 5.25% interest compounded semi-annually has fixed quarterly payments of $650 Answer the following questions For full marks your answer should be rounded to the nearest cent. a) How long will it take to pay off the loan? Your answer should be rounded to the appropriate whole period. 0 years, 0 months b) What is the principal component of the 20th payment? Principal = $0.00 c) What is the interest component of the 9th payment? Interest = $0.00 d) How much is the principal reduced by payments 15 through 187 Principal = $0.00 e) What is the total interest paid for payments 1 through 4? Interest = $ 0.00

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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