Answer a:
Working:
Loan amount = Cost * (1 - Down payment as %) = 58500 * (1 + 35%) = $38,025
Interest rate (compounded semiannually) = 7.50%
Effective annual rate = (1 + 7.50%/ 2)^2 - 1 = 7.640625%
Quarterly rate = (1 + 7.640625) ^(1/4) -1 = 1.857744%
Given that:
PV = 38025
PMT = 2050.27
Quarterly interest rate = 1.857744%
Hence:
Number of payments = NPER( 1.857744%, 2050.27, -38025, 0, 0) = 22.95 or 23
Answer b:
Payment number 1:
Payment = $2050.27
Interest portion = 38025 * 1.857744% = $706.41
Principal portion = 2050.27 - 706.41 =1343.86
Principal balance = 38025 - 1343.86 = $36,681.14
Similarly we calculate below details for all payment numbers.
Amortization schedule for loan is as follows:
Payment for Payment number 23, is derived amount to get principal balance = $0
b. Fill in the partial amortization schedule for the loan, rounding your answers to two decimal...
b. Fill in the partial amortization schedule for the loan, rounding your answers to two decimal places. Holly received a loan of $36,000 at 3.5% compounded monthly. She had to make payments at the end of every month for a period of 5 years to settle the loan. a. Calculate the size of payments. 0.00 Round to the nearest cent Interest Principal Payment Principal Payment Portion Portion Balance Number $36,000.00 $0.00 $0.00 $0.00 $0.00 1 $0.00 $0.00 $0.00 $0.00 2...
b. Fill in the partial amortization schedule for the loan, rounding your answers to two decimal places. We were unable to transcribe this imagePrincipal Principal Interest Payment Payment Balance Portion Portion Number $51,000.00 $0.00 $0.00 $0.00 $0.00 1 $0.00 $0.00 $0.00 $0.00 : : : : $0.00 $0.00 $0.00 $0.00 0 $0.00 $0.00 $0.00 0 0.00 $0.00 $0.00 Total ::
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Develop an amortization schedule for the loan described. (Round your answers to the nearest cent.) $100,000 for 3 years at 10% compounded annually Period Payment Interest Balance ReductionUnpaid Balance $100000 $0.00
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32. Partial amortization schedule for mortgages. Margie Rogers secures a mortgage loan of $112,000 from Hanover National Bank. The terms of the mortgage require monthly payments of $802.40 for 20 years. The interest rate to be applied to the unpaid balance is 6% per year compounded monthly. Prepare an amortization schedule showing payments, interest reduction in principal and remaining balance for the first six months of the loan. SEGMENT 3: Other Topics