Question

A $27,000 loan at 8% compounded quarterly is to be repaid by equal quarterly payments over a seven-year term.
a.	What will be the principal component of the sixth payment? (Round your answer to 2 decimal places.)
	Principal component of the sixth payment $ .
b.	What will be the interest portion of the twenty-second payment? (Round your answer to 2 decimal places.)
	Interest portion $ .
c.	How much will the loan’s balance be reduced by Payments 10 to 15 inclusive? (Round your answer to 2 decimal places.)
	Principal paid by Payment 10 to Payment 15 inclusive $ .
d.	How much interest will be paid in the second year? (Round your answer to 2 decimal places.)
	Interest paid in the second year $ .

Answer 1

IF ANY QUERY, FEEL FREE TO ASK THEM AND GET RESOLVED Solution Principal Formula Interest Formula -CUMPRINC(rate,period, borrow,start period, end period,0) -CUMIPMT(rate,period, borrow,start period, end period,0) a. principal component of the sixth payment Principal Formula $804.57 --CUMPRINC(8%/4,7*4,27000,6,6,0) b. interest portion of the twenty-second payment Interest Formula $164.22 --CUMIPMT(8%/4,7*4,27000,22,22,0) C. Loan's balance be reduced by Payments 10 to 15 inclusive Principal Formula $5,493.67 --CUMPRINC(8%/4,7*4,27000,10,15,0) d. interest to be paid in the second year (quarter 5 to 8) Interest Formula $1,823.80 --CUMIPMT(8%/4,7*4,27000,5,8,0)