A $40,000 loan at 6.6% compounded monthly will be repaid by monthly payments over ten years. a.
Question:
a. Calculate the interest component of Payment 35.
b. Calculate the principal component of Payment 63.
c. Calculate the reduction of principal in Year 1.
d. Calculate the reduction of principal in Year 10.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 62% (16 reviews)
Given PV 40000 n 1210 120 i 6612 055 Substitute into formula 102 and solve fo...View the full answer
Answered By
SUMAN PARUI
I am studying for Bachelor's degree in Science with Physiology Honours,
I have worked as a Biology subject expert in QnA board at Chegg
0.00
0 Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Accounting questions
-
A $40,000 mortgage loan charges interest at 6.6% compounded monthly for a four-year term. Monthly payments were calculated for a 15-year amortization and then rounded up to the next higher $10. a....
-
Greg borrowed $6500 at 6.4% compounded monthly to help finance his education. He contracted to repay the loan in monthly payments of $300 each. If the payments are due at the end of each month and...
-
A marketing innovation is the cash-back mortgage wherein the lender gives the borrower an up-front bonus cash payment. For example, if you borrow $100,000 on a 3% cash-back mortgage loan, the lender...
-
A process has an in-control fraction nonconforming of p = 0.01. The sample size is n = 300. What is the probability of detecting a shift to an out-of-control fraction nonconforming of p = 0.05 on the...
-
The following information relates to a manufacturer of CD players (amounts in millions): Required A. Compute the asset turnover ratio for each year. B. How well has the company managed its investment...
-
A company that manufactures stoves has one plant and two distribution centers (DCs). Given the following information for the two DCs, calculate the gross requirements, projected available, and...
-
Upon reviewing recent use of conference rooms at an engineering consulting firm, an industrial engineer determined the following probability distribution for the number of requests for a conference...
-
You have been hired as a marketing research analyst by P&G. Your boss, the market manager, is wondering whether the market for toothpaste can be segmented based on the benefits consumers seek while...
-
As of 1 Jan 2020, Alliance Bank has the following balance sheet and no off-balance sheet transactions or securitisation activities. Assets Liabilities and equity Cash $24 Deposits $1176 Australian...
-
Lewis and Stark is a public accounting firm that offers two primary services, auditing and tax-return preparation. A controversy has developed between the partners of the two service lines as to who...
-
Elkford Loggings bank will fix the interest rate on a $60,000 loan at 8.1% compounded monthly for the first four years. After four years, the interest rate will be fixed at the prevailing five-year...
-
An interactive chart for investigating the composition of loan payments is provided in the textbooks Web site. In Chapter 14 of the Student Edition, find Composition of Loan Payments. The chart...
-
A robot gripper shown in part (a) of Figure P4.17, is to be controlled so that it closes to an angle θ by using a DC motor control system, as shown in part (b). The model of the control...
-
True Or False Survival actions are usually brought by the executor of the decedents estate.
-
True Or False In states that prohibit leaving keys in a parked car, a defendant is not necessarily negligent per se if they leave their keys in their car and the thief who steals the car is involved...
-
In an emergency, a defendant is expected to act __________ or can be found to be liable for their actions.
-
What are the duties of a tenant?
-
True Or False In determining whether a defendant acted reasonably, the jury must consider the situation from the defendants perspective and state of mind.
-
The value of a mutual fund increases at a rate of R = 500e 0.04t dollars per year, with t in years since 2010. (a) Using t = 0, 2, 4, 6, 8, 10, make a table of values for R. (b) Use the table to...
-
Which of the following raises the credibility of areport? Which of the following raises the credibility of a report? Multiple Choice avoiding predictions avoiding the use of cause-effect statements...
-
Purchases Recorded, Gross Method Wizard Industries purchased $12,000 of merchandise on February 1, 2010, subject to a trade discount of 10% and with credit terms of 3/15, n/60. It returned $3,000...
-
Periodic versus Perpetual Entries Chippewas Company sells one product. Presented below is information for January for Chippewas Company. Jan. 1 Inventory 100 units at $6 each 4 Sale 80 units at $8...
-
Inventory ErrorsPeriodic Thomason Company makes the following errors during the current year. (In all cases, assume ending inventory in the following year is correctly stated.) 1. Both ending...
-
The Morrit Corporation has $1,200,000 of debt outstanding, and it pays an interest rate of 8% annually. Morrit's annual sales are $6 million, its average tax rate is 25%, and its net profit margin on...
-
As an Investor, if I purchase a Corp Bond with a Coupon rate of 9%, and I am in the 30% tax bracket, effectively what rate will I be earning? Hint: If I purchased a Muni-Bond with an 8% Coupon rate,...
-
How can performance management systems be used to identify and nurture high-potential talent within the organization ?
Study smarter with the SolutionInn App