Which of the following is one of the 4 basic rules for calculating loan payments and...
Which of the following is one of the 4 basic rules for calculating loan payments and balances?
- Interest owed in each payment = applicable interest rate times outstanding principle balance
- The initial outstanding principle balance = the initial contract principle specified in the loan agreement
- The principle amortization in each payment = the total payment – interest owed
- The outstanding principal balance after each payment = the previous outstanding principle balance – principle paid down in the payment
- All of the above are one of the 4 basic rules
Homework Answers
Option (E) is correct
All the options given are correct.
By applying any of the 4 rules given, we can calculate the needed / required amount of principal or interest.
Add Answer to:
Which of the following is one
of the 4 basic rules for calculating loan payments and...
A loan of 100,000 is to be repaid in 4 level annual payments starting one year...
A loan of 100,000 is to be repaid in 4 level annual payments starting one year after the loan date. For the first 2 years, the annual interest rate is 8%; for the last 2 years, the annual interest rate is 4%. Find the annual payment and complete the loan amortization table. t Payment Interest Due Principal Repaid Outstanding Balance 0 100,000 1 2 3 4
A loan of $450,000 is amortized over 30 years with payments at the end of each...
A loan of $450,000 is amortized over 30 years with payments at
the end of each month and an interest rate of 6.3%, compounded
monthly.
Use Excel to create an amortization table showing, for each of the
360 payments, the beginning balance, the interest owed, the
principal, the payment amount, and the ending balance.
a) Find the amount of each payment. $
b) Find the total amount of interest paid during the first 15
payments. $
Suppose that payment number...
A loan of $470,000 is amortized over 30 years with payments at the end of each...
A loan of $470,000 is amortized over 30 years with payments at
the end of each month and an interest rate of 6.5%, compounded
monthly.
Use Excel to create an amortization table showing, for each of the
360 payments, the beginning balance, the interest owed, the
principal, the payment amount, and the ending balance.
Answer the following, rounding to the nearest penny.
a) Find the amount of each payment. $
b) Find the total amount of interest paid during the...
A loan of amount $42000 is to be repaid in payments that each consist of a...
A loan of amount $42000 is to be repaid in payments that each consist of a principal repayment of $840 plus the interest on the previous outstanding balance. What is the total interest paid if the interest per payment period is 2.8%?
You took a 5 year, $100,000 loan. The loan has equal principal payments. The loan carries...
You took a 5 year, $100,000 loan. The loan has equal principal payments. The loan carries a 6% annual interest rate and is paid back in annual payments. 1. What is the outstanding balance of the loan after 3 years? 2. Compute an amortization table for the loan. 3. What is the interest payment on the fourth installment?
5) A loan is being repaid by 2n level payments (with the first payment 1 period after the start of the loan) at an...
5) A loan is being repaid by 2n level payments (with the first payment 1 period after the start of the loan) at an effective interest rate of j per period. Just after the nth payment, the outstanding balance on the loan is 3/4 of the initial outstanding balance on the loan. a) Find vj". b) What is the ratio of interest to principal reduction in the n+1st payment? (i.e In+1/PR.n+1)
Find the amortization table for a $13,000 loan amortized over 3 years with semiannual payments if...
Find the amortization table for a $13,000 loan amortized over 3 years with semiannual payments if the interest rate is 5.7% per year compounded semiannually. (Round your answers to the nearest cent.) End of Period Payment Made Payment Toward Interest Payment Toward Principal Outstanding Principle 13000
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 5.3% per year compounded semiannually. (Round your answers to the nearest cent.) End of Payment Period Made Payment Toward Interest Payment Toward Principal Outstanding Principle 23000
Given the following partial amortization table for a loan repaid in level payments. Fill in the...
Given the following partial amortization table for a loan repaid in level payments. Fill in the rest of the table (keep adding rows until the loan is paid off) and use it to answer the following questions: (Round the entries in the table off to two decimal places. Give your answers to 2 decimal places but keep 5 decimals for intermediate computations.) Partial Amortization Table Principal Payment Interest Reduction Time Outstanding Balance ? 0 1 ? 4227.441 21072.561 2277.001 ?...
Loan amortization schedule Personal Finance Problem Joan Messineo borrowed $46,000 at a 4% annual rate of...
Loan amortization schedule Personal Finance Problem Joan Messineo borrowed $46,000 at a 4% annual rate of interest to be repaid over 3 years. The loan is amortized into three equal, annual end-of-year payments Calculate the annual end of year loan payment b. Prepare a loan amortization schedule showing the interest and principal breakdown of each of the three loan payments. c. Explain why the interest portion of each payment declines with the passage of time. a. The amount of the...
A loan of $450,000 is amortized over 30 years with payments at
the end of each month and an interest rate of 6.3%, compounded
monthly.
Use Excel to create an amortization table showing, for each of the
360 payments, the beginning balance, the interest owed, the
principal, the payment amount, and the ending balance.
a) Find the amount of each payment. $
b) Find the total amount of interest paid during the first 15
payments. $
Suppose that payment number...
A loan of $470,000 is amortized over 30 years with payments at
the end of each month and an interest rate of 6.5%, compounded
monthly.
Use Excel to create an amortization table showing, for each of the
360 payments, the beginning balance, the interest owed, the
principal, the payment amount, and the ending balance.
Answer the following, rounding to the nearest penny.
a) Find the amount of each payment. $
b) Find the total amount of interest paid during the...
A loan of amount $42000 is to be repaid in payments that each consist of a principal repayment of $840 plus the interest on the previous outstanding balance. What is the total interest paid if the interest per payment period is 2.8%?
5) A loan is being repaid by 2n level payments (with the first payment 1 period after the start of the loan) at an effective interest rate of j per period. Just after the nth payment, the outstanding balance on the loan is 3/4 of the initial outstanding balance on the loan. a) Find vj". b) What is the ratio of interest to principal reduction in the n+1st payment? (i.e In+1/PR.n+1)
Find the amortization table for a $13,000 loan amortized over 3 years with semiannual payments if the interest rate is 5.7% per year compounded semiannually. (Round your answers to the nearest cent.) End of Period Payment Made Payment Toward Interest Payment Toward Principal Outstanding Principle 13000
Find the amortization table for a $23,000 loan amortized over 3 years with semiannual payments if the interest rate is 5.3% per year compounded semiannually. (Round your answers to the nearest cent.) End of Payment Period Made Payment Toward Interest Payment Toward Principal Outstanding Principle 23000
Given the following partial amortization table for a loan repaid in level payments. Fill in the rest of the table (keep adding rows until the loan is paid off) and use it to answer the following questions: (Round the entries in the table off to two decimal places. Give your answers to 2 decimal places but keep 5 decimals for intermediate computations.) Partial Amortization Table Principal Payment Interest Reduction Time Outstanding Balance ? 0 1 ? 4227.441 21072.561 2277.001 ?...
Loan amortization schedule Personal Finance Problem Joan Messineo borrowed $46,000 at a 4% annual rate of interest to be repaid over 3 years. The loan is amortized into three equal, annual end-of-year payments Calculate the annual end of year loan payment b. Prepare a loan amortization schedule showing the interest and principal breakdown of each of the three loan payments. c. Explain why the interest portion of each payment declines with the passage of time. a. The amount of the...
Most questions answered within 3 hours.
-
a
dairy farmer notices that a citcular water trough near the barn has
become rusty with...
asked 9 minutes ago -
In a study of the accuracy of fast food drive-through orders,
Restaurant A had 283 accurate...
asked 11 minutes ago -
A share of common stock has just paid a dividend of $2.50. If
the expected long-run...
asked 21 minutes ago -
1. List all actors whose last names start
with letter "K"? The output needs to include the actor's...
asked 23 minutes ago -
1.The New England Merchants Bank Building in Boston is 152 m
high. On windy days it...
asked 26 minutes ago -
Can someone explain this code with comments I am supposed to dispay an array an add...
asked 41 minutes ago -
MKT2283 Sales Management Week 2 Assignment
Making Sales Management Decisions – Pronto Retail
Centers
Sales Management,...
asked 47 minutes ago -
Uranium is distributed in a form called yellow cake, which is
made from uranium ore. In...
asked 58 minutes ago -
Python:
Write a func that will create a list of random numbers. The
function will take...
asked 1 hour ago -
Which of the following statements below is correct? There might
be more than one correct answer....
asked 1 hour ago -
You find that the annual standard deviation of a stock's returns
is equal to 35%. For...
asked 1 hour ago -
A 2,000 kg car is traveling at 20.0 m/s down a long mountain
grade of 1.00%....
asked 1 hour ago