Question: A $37,000 loan at 8.2% compounded semiannually is to be repaid by semiannual payments of $2500 (except for a smaller final payment). a. What will

A $37,000 loan at 8.2% compounded semiannually is to be repaid by semiannual payments of $2500 (except for a smaller final payment).
a. What will be the principal component of the sixteenth payment?
b. What will be the interest portion of the sixth payment?
c. How much will Payments 8 to 14 inclusive reduce the principal balance?
d. How much interest will be paid in the fifth year?
e. What will be the final payment?

Step by Step Solution

★★★★★

3.43 Rating (169 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Given PV 37000 i 282 41 PMT 2500 a Principal in Payment 16 Balanc... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

711-B-A-C-I (1624).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

Jesper Parnevik borrowed $70,000 on March 1, 2006. This amount plus accrued interest at 12% compounded semiannually is to be repaid March 1, 2016. To retire this debt, Jesper plans to contribute to a...

Ricky Fowler borrowed $70,000 on March 1, 2015. This amount plus accrued interest at 6% compounded semiannually is to be repaid March 1, 2025. To retire this debt, Ricky plans to contribute to a debt...

Alex Hardaway borrowed $90,000 on March 1, 2010. This amount plus accrued interest at 12% compounded semiannually is to be repaid March 1, 2020. To retire this debt, Alex plans to contribute to a...

math 1. Determine the future value: 2. Determine the present value of the ordinary annuity: 3. Determine the future value: 4. Determine the present value of the ordinary annuity: 5. Josie spends $60...

2. 5. 6. Determine the future value: Periodic Payment Payment ($) Interval 3500 ($) 100 Determine the present value of the ordinary annuity: Periodic Payment Payment Interval Term 3. ($) 2000 4....

A $37,000 loan at 8.2% compounded semiannually is to be repaid by semiannual payments of $2500 (except for a smaller, final payment). (Round all dollar values to 2 decimal places.) a. What will be...

A $37,000 loan at 8.2% compounded semiannually is to be repaid by semiannual payments of $2500 (except for a smaller final payment). a) What will be the principal component of the sixteenth payment?...

In Exercises 1-4, use Cramer's Rule to solve the given linear system. 1. x + y = 1 x - y = 2 2. 2x - y = 5 x + 3y = - 1 3. 2x + y + 3z = 1 y + z = 1 z = 1 4. x + y - z = 1 x + y + z = 2 x - y = 3

a) f(x) = x sin x, b) f(x, y) = xy, x = 1, c = (), d = 0.1 d= 1 = (0:1)

What major foreign market does your company serve, and what mode has it used to enter this market? Why is your company active in these markets and not others? What are the advantages and...

15. Mr. Rhoadss supplier has agreed to give him a 10 percent discount on orders of 1,000 or more helmets. Should he take advantage of this discount? Why or why not?

Ford Motor Co. is considering alternate methods of accounting for the cash discounts it takes when paying suppliers promptly. One method suggested was to report these discounts as financial income...

Zonker Inc. purchases 500 units of an item at an invoice cost of $30,000. What is the cost per unit? If the goods are shipped f.o.b. shipping point and the freight bill was $1,500, what is the cost...

Specific identification is sometimes said to be the ideal method of assigning cost to inventory and to cost of goods sold. Briefly indicate the arguments for and against this method of inventory...

Carlton Products Company has analyzed the indirect costs associated with servicing its various customers in order to assess customer profitability. Results appear below: If all costs were assigned to...

et meducation.com/flow/connect.html Login - Nelnet N Northwest Bank Windstream Online Sears Credit Card. MyMarketinglab | StudentLoans.gov Welcome - Blackbo... PARemote Access Port.. G Google k7...

Consider two mutually exclusive investment projects, each with MARR = 12%, as shown in the table below, On the basis of the NPW criterion, which alternative would be selected