Explain loan amortization
Homework Answers
Loan amortization refers to payment of loan over the life of the loan amount. A fixed monthly payment is made which include a portion of interest which is calculated on the remaining balance of loan and remaining balance of monthly payment would be used to write off the principle amount. This process continues till the last payment of loan.
Diffrence between loan amortization (5,15, 30 years) Explain what happens to princpal , interest and payment.
Diffrence between loan amortization (5,15, 30 years) Explain what happens to princpal , interest and payment.
If Benji had received a loan with 10 year amortization instead of 5 year amortization, but...
If Benji had received a loan with 10 year amortization instead of 5 year amortization, but the loan was still due in 5 years (this is called a "balloon loan"), how much principal would be owed by Benji at the end of 5 years? Total Start-Up Costs $1,100,000 % Financed 85% Loan Principal $935,000 Rate 7% Term (Years) 5 Amortization (Years) 5 Loan Monthly Payment -$18,514.12
Loan amortization and EAR
Loan amortization and EARYou want to buy a car, and a local bank will lend you $25,000. The loan will be fully amortized over 5 years (60 months), and the nominal interest rate will be 6% with interest paid monthly.What will be the monthly loan payment? Round your answer to the nearest cent.$ What will be the loan's EAR? Round your answer to two decimal places. %
Topical Assignment Create a loan example for yourself and create an amortization for your loan. Criteria:...
Topical Assignment Create a loan example for yourself and create an amortization for your loan. Criteria: • State the purpose of the loan, the terms of the loan (including principal, interest rate and loan term) • Create an amortization schedule for the loan. (this may be done by hand or in Excel) • Provide the total amount of principal and interest that will be paid back over the life of the loan.
Amortization with Equal Payments [LO3] Prepare an amortization schedule for a five-year loan of $71,500. The...
Amortization with Equal Payments [LO3] Prepare an amortization schedule for a five-year loan of $71,500. The interest rate is 7 percent per year, and the loan calls for equal annual payments. How much interest is paid in the third year? How much total interest is paid over the life of the loan?
PLEASE EXPLAIN HOW TO CREATE THE AMORTIZATION TABLE IN EXCEL! Mini-Project 1: Mortgage Loan Analysis (50...
PLEASE EXPLAIN HOW TO CREATE THE AMORTIZATION TABLE IN EXCEL! Mini-Project 1: Mortgage Loan Analysis (50 points): You plan to buy a house in December 2019. The sale price is $385,000. You need to pay 20% down payments and borrow additional 80% from Bank of America with a 25-year, 3.0% fixed-rate mortgage loan. You are expected to pay an equal MONTHLY payment starting from January 2020 for a total of 25 years. (1) Calculate your expected monthly mortgage payment. (2)...
Amortization of a Loan EXAMPLE EXERCISES For the following exercises, create an amortization table for a...
Amortization of a Loan EXAMPLE EXERCISES For the following exercises, create an amortization table for a $21,500 car loan with 4.5% APR over 72 months. 1. What is the monthly payment? 2. How much is actually paid over the life of the loan? How much interest? 3. How much is saved if you round up to the next $50 increment? Next $100? For the following exercises, create an amortization table for $135,000 home purchase at 4.6% fixed APR. Remember mortgages...
Create a monthly loan amortization schedule for the following loan: The amount to borrow is: 15,000.00...
Create a monthly loan amortization schedule for the following loan: The amount to borrow is: 15,000.00 Term of the loan: 3 years Annual interest rate: 6% Loan payments are made monthly.
Mortgage Amortization Complete the loan amortization schedule for a Mortgage that will be repaid over 360...
Mortgage Amortization Complete the loan amortization schedule for a Mortgage that will be repaid over 360 months and answer the following questions (The details about the loan are shown below): Correct Answers 1. What is your monthly payment? 2. What is the total $ amount of payments made over the life of the loan Enter Answers Here. 3. How many months will it take to pay off the loan if you pay an extra $465.71 per month? Note: Enter the...
8. Prepare the loan amortization schedule ($15) You borrow $1,000, and the loan is to be...
8. Prepare the loan amortization schedule ($15) You borrow $1,000, and the loan is to be repaid in three equal payments at the end of each of the next three years. The lender charges a 6 percent interest rate on the loan balance that is outstanding at the beginning of each year. 1) Calculate the payment the firm must repay each year. 2) Prepare the loan amortization schedule (fill all the numbers in each cell). Beginning Amount Repayment of Remaining...
Topical Assignment Create a loan example for yourself and create an amortization for your loan. Criteria: • State the purpose of the loan, the terms of the loan (including principal, interest rate and loan term) • Create an amortization schedule for the loan. (this may be done by hand or in Excel) • Provide the total amount of principal and interest that will be paid back over the life of the loan.
Mortgage Amortization Complete the loan amortization schedule for a Mortgage that will be repaid over 360 months and answer the following questions (The details about the loan are shown below): Correct Answers 1. What is your monthly payment? 2. What is the total $ amount of payments made over the life of the loan Enter Answers Here. 3. How many months will it take to pay off the loan if you pay an extra $465.71 per month? Note: Enter the...
8. Prepare the loan amortization schedule ($15) You borrow $1,000, and the loan is to be repaid in three equal payments at the end of each of the next three years. The lender charges a 6 percent interest rate on the loan balance that is outstanding at the beginning of each year. 1) Calculate the payment the firm must repay each year. 2) Prepare the loan amortization schedule (fill all the numbers in each cell). Beginning Amount Repayment of Remaining...
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