Homework Answers
Following is the complete amortization schedule:
| Month | Opening Balance | PMT | Interest | Principal repayment | Closing Balance |
| 0 | $ 12,000.00 | ||||
| 1 | $ 12,000.00 | $ 270.95 | $ 40.00 | $ 230.95 | $ 11,769.05 |
| 2 | $ 11,769.05 | $ 270.95 | $ 39.23 | $ 231.72 | $ 11,537.33 |
| 3 | $ 11,537.33 | $ 270.95 | $ 38.46 | $ 232.49 | $ 11,304.84 |
| 4 | $ 11,304.84 | $ 270.95 | $ 37.68 | $ 233.27 | $ 11,071.58 |
| 5 | $ 11,071.58 | $ 270.95 | $ 36.91 | $ 234.04 | $ 10,837.53 |
| 6 | $ 10,837.53 | $ 270.95 | $ 36.13 | $ 234.82 | $ 10,602.71 |
| 7 | $ 10,602.71 | $ 270.95 | $ 35.34 | $ 235.61 | $ 10,367.10 |
| 8 | $ 10,367.10 | $ 270.95 | $ 34.56 | $ 236.39 | $ 10,130.71 |
| 9 | $ 10,130.71 | $ 270.95 | $ 33.77 | $ 237.18 | $ 9,893.53 |
| 10 | $ 9,893.53 | $ 270.95 | $ 32.98 | $ 237.97 | $ 9,655.56 |
| 11 | $ 9,655.56 | $ 270.95 | $ 32.19 | $ 238.76 | $ 9,416.80 |
| 12 | $ 9,416.80 | $ 270.95 | $ 31.39 | $ 239.56 | $ 9,177.24 |
| 13 | $ 9,177.24 | $ 270.95 | $ 30.59 | $ 240.36 | $ 8,936.88 |
| 14 | $ 8,936.88 | $ 270.95 | $ 29.79 | $ 241.16 | $ 8,695.72 |
| 15 | $ 8,695.72 | $ 270.95 | $ 28.99 | $ 241.96 | $ 8,453.76 |
| 16 | $ 8,453.76 | $ 270.95 | $ 28.18 | $ 242.77 | $ 8,210.99 |
| 17 | $ 8,210.99 | $ 270.95 | $ 27.37 | $ 243.58 | $ 7,967.41 |
| 18 | $ 7,967.41 | $ 270.95 | $ 26.56 | $ 244.39 | $ 7,723.02 |
| 19 | $ 7,723.02 | $ 270.95 | $ 25.74 | $ 245.21 | $ 7,477.81 |
| 20 | $ 7,477.81 | $ 270.95 | $ 24.93 | $ 246.02 | $ 7,231.79 |
| 21 | $ 7,231.79 | $ 270.95 | $ 24.11 | $ 246.84 | $ 6,984.95 |
| 22 | $ 6,984.95 | $ 270.95 | $ 23.28 | $ 247.67 | $ 6,737.28 |
| 23 | $ 6,737.28 | $ 270.95 | $ 22.46 | $ 248.49 | $ 6,488.79 |
| 24 | $ 6,488.79 | $ 270.95 | $ 21.63 | $ 249.32 | $ 6,239.47 |
| 25 | $ 6,239.47 | $ 270.95 | $ 20.80 | $ 250.15 | $ 5,989.32 |
| 26 | $ 5,989.32 | $ 270.95 | $ 19.96 | $ 250.98 | $ 5,738.34 |
| 27 | $ 5,738.34 | $ 270.95 | $ 19.13 | $ 251.82 | $ 5,486.52 |
| 28 | $ 5,486.52 | $ 270.95 | $ 18.29 | $ 252.66 | $ 5,233.86 |
| 29 | $ 5,233.86 | $ 270.95 | $ 17.45 | $ 253.50 | $ 4,980.36 |
| 30 | $ 4,980.36 | $ 270.95 | $ 16.60 | $ 254.35 | $ 4,726.01 |
| 31 | $ 4,726.01 | $ 270.95 | $ 15.75 | $ 255.20 | $ 4,470.81 |
| 32 | $ 4,470.81 | $ 270.95 | $ 14.90 | $ 256.05 | $ 4,214.77 |
| 33 | $ 4,214.77 | $ 270.95 | $ 14.05 | $ 256.90 | $ 3,957.87 |
| 34 | $ 3,957.87 | $ 270.95 | $ 13.19 | $ 257.76 | $ 3,700.11 |
| 35 | $ 3,700.11 | $ 270.95 | $ 12.33 | $ 258.61 | $ 3,441.50 |
| 36 | $ 3,441.50 | $ 270.95 | $ 11.47 | $ 259.48 | $ 3,182.02 |
| 37 | $ 3,182.02 | $ 270.95 | $ 10.61 | $ 260.34 | $ 2,921.68 |
| 38 | $ 2,921.68 | $ 270.95 | $ 9.74 | $ 261.21 | $ 2,660.47 |
| 39 | $ 2,660.47 | $ 270.95 | $ 8.87 | $ 262.08 | $ 2,398.39 |
| 40 | $ 2,398.39 | $ 270.95 | $ 7.99 | $ 262.95 | $ 2,135.43 |
| 41 | $ 2,135.43 | $ 270.95 | $ 7.12 | $ 263.83 | $ 1,871.60 |
| 42 | $ 1,871.60 | $ 270.95 | $ 6.24 | $ 264.71 | $ 1,606.89 |
| 43 | $ 1,606.89 | $ 270.95 | $ 5.36 | $ 265.59 | $ 1,341.30 |
| 44 | $ 1,341.30 | $ 270.95 | $ 4.47 | $ 266.48 | $ 1,074.82 |
| 45 | $ 1,074.82 | $ 270.95 | $ 3.58 | $ 267.37 | $ 807.46 |
| 46 | $ 807.46 | $ 270.95 | $ 2.69 | $ 268.26 | $ 539.20 |
| 47 | $ 539.20 | $ 270.95 | $ 1.80 | $ 269.15 | $ 270.05 |
| 48 | $ 270.05 | $ 270.95 | $ 0.90 | $ 270.05 | $ 0.00 |
| $ 13,005.54 | $ 1,005.54 | $ 12,000.00 |
- Opening balance = previous year's closing balance
- Closing balance = Opening balance+Loan-Principal repayment
- PMT is given
- Interest = 0.04 /12 x opening balance
- Principal repayment = PMT - Interest
- Bold marked months are those which are required by the question
Add Answer to:
An automobile loan of $12,000 at a nominal rate of 4% compounded monthly for 48 months...
An automobile loan of $22,000 at a nominal rate of 10% compounded monthly for 48 months...
An automobile loan of $22,000 at a nominal rate of 10% compounded monthly for 48 months requires equal end-of-month payments of $557.98. Complete the table below, as you would expect a bank to calculate the values. (Round to the nearest cent.) End of Month Interest Payment Repayment of Remaining Loan Principal Balance $ 183.33 $ 374.65 $21,625.35 $ 180.21 $377.77 $ 21247.58 $144.10 $17
A loan of $49295 is to be financed over a period of 24 months. The bank...
A loan of $49295 is to be financed over a period of 24 months. The bank quotes a nominal rate of 8% for the first 12 months and a nominal rate of 9% for any remaining unpaid balance after 12 months compounded monthly. What equal end-of-the-month payment for 24 months would be required to repay the loan with interest?
A loan is amortized over 7 years, with monthly payments at a nominal rate of 9.5% compounded monthly. The first payme...
A loan is amortized over 7 years, with monthly payments at a nominal rate of 9.5% compounded monthly. The first payment is $1000, paid one month from the date of the loan. Each succeeding monthly payment will be 3% lower than the prior one. What is the outstanding balance immediately after the 30th payment is made?
When Maria Acosta bought a car 2 1/2 years ago, she borrowed $12,000 for 48 months...
When Maria Acosta bought a car 2 1/2 years ago, she borrowed $12,000 for 48 months at 6.6% compounded monthly. Her monthly payments are $285.13, but she'd like to pay off the loan early. How much will she owe just after her payment at the 2 1/2-year mark? (Round your answer to the nearest cent.)
Your company has just taken out a 1-year installment loan for $72,500 at a nominal rate...
Your company has just taken out a 1-year installment loan for $72,500 at a nominal rate of 11.0% but with equal end-of-month payments. What percentage of the 2nd monthly payment will go toward the repayment of principal?
Tucson Bank offers to lend you $50,000 at a nominal rate of 12%, compounded monthly. The loan (principal plus interest)...
Tucson Bank offers to lend you $50,000 at a nominal rate of 12%, compounded monthly. The loan (principal plus interest) must be repaid at the end of the year. Phoenix Bank also offers to lend you the $50,000, but it will charge an annual rate of 10.8%, with no interest due until the end of the year. How much higher or lower is the effective annual rate charged by Tucson versus the rate charged by Phoenix? Solve without Excel. Show...
A lender providing a loan of $7 million requires semi-annual payment of interest at a nominal...
A lender providing a loan of $7 million requires semi-annual payment of interest at a nominal rate of 7.9% per year, and repayment of the $7 million principal at the end of 13 years. The borrower plans to accumulate that principal for repayment at the end of 13 years using level semi-annual deposits into a sinking fund that earns interest at a nominal rate of 3.2% per year when compounded semiannually. What is the borrower's total cash outlay every 6...
A lender providing a loan of $8.5 million requires semi-annual payment of interest at a nominal...
A lender providing a loan of $8.5 million requires semi-annual payment of interest at a nominal rate of 6.4% per year, and repayment of the $8.5 million principal at the end of 11 years. The borrower plans to accumulate that principal for repayment at the end of 11 years using level semi-annual deposits into a sinking fund that earns interest at a nominal rate of 5.9% per year when compounded semiannually. What is the borrower’s total cash outlay every 6...
Southwestern Bank offers to lend you $50,000 at a nominal rate of 7.2%, compounded monthly. The...
Southwestern Bank offers to lend you $50,000 at a nominal rate of 7.2%, compounded monthly. The loan (principal plus interest) must be repaid at the end of the year. Woodburn Bank also offers to lend you the $50,000, but it will charge an annual rate of 9.5%, with no interest due until the end of the year. How much higher or lower is the effective annual rate charged by Woodburn versus the rate charged by Southwestern? Select the correct answer....
East Commercial Bank offers to lend you $40,000 at a nominal rate of 7.5%, compounded monthly....
East Commercial Bank offers to lend you $40,000 at a nominal rate of 7.5%, compounded monthly. The loan (principal plus interest) must be repaid at the end of the year. West Commercial Bank also offers to lend you the $40,000, but it will charge an annual rate of 8.0%, with no interest due until the end of the year. How much higher or lower is the effective annual rate charged by West Commercial Bank versus the rate charged by East...
An automobile loan of $22,000 at a nominal rate of 10% compounded monthly for 48 months requires equal end-of-month payments of $557.98. Complete the table below, as you would expect a bank to calculate the values. (Round to the nearest cent.) End of Month Interest Payment Repayment of Remaining Loan Principal Balance $ 183.33 $ 374.65 $21,625.35 $ 180.21 $377.77 $ 21247.58 $144.10 $17
A lender providing a loan of $7 million requires semi-annual payment of interest at a nominal rate of 7.9% per year, and repayment of the $7 million principal at the end of 13 years. The borrower plans to accumulate that principal for repayment at the end of 13 years using level semi-annual deposits into a sinking fund that earns interest at a nominal rate of 3.2% per year when compounded semiannually. What is the borrower's total cash outlay every 6...
Most questions answered within 3 hours.
-
16.7
At t=0s a small "upward" (positive y) pulse centered at x = 5.0
m is...
asked 2 minutes ago -
Twitter Users and News: A poll conducted in 2013 found that 52%
of U.S. adult Twitter...
asked 17 minutes ago -
How
would I know whether a given amino acid has an ionizable group or
not? please...
asked 24 minutes ago -
True or false?
True False The function of the enzyme acyl CoA
synthetase is the ATP-dependent coupling...
asked 25 minutes ago -
Nadia Corporation adjusts its debt so that its interest coverage
(EBIT/Interest) remains constant at 3. Nadia’s...
asked 27 minutes ago -
In a clinical trial, 20 out of 600 patients taking a
prescription drug complained of flulike...
asked 33 minutes ago -
7. How many types of nuclear processes can produce energy? 8.
How many types of radioactive...
asked 36 minutes ago -
For both the Sn2 and Sn1 reaction
conditions:
Structure | Rxn (Y/N) at room T° Rxn...
asked 37 minutes ago -
11. In cell N2, enter a formula using the IF function and a
structured reference to...
asked 37 minutes ago -
There is X-linked mutations in flies in this example. You need
to determine the inheritence pattern...
asked 39 minutes ago -
1) There is a 5.0 μC charge at each of 3 corners of a square
(each...
asked 50 minutes ago -
A study of 420,095 cell phone users found that
134 of them developed cancer of the...
asked 53 minutes ago