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...
-
Backline Advertising creates, plans, and handles advertising campaigns in a three-state area. Recently, Backline had to replace an inexperienced office worker in charge of bookkeeping because of some...
-
What is induced AOA?
-
The following expenditures relating to plant assets were made by Devereaux Company during the first 2 months of 2014. 1. Paid $5,000 of accrued taxes at time plant site was acquired. 2. Paid $400...
-
The City of Evansville operated a summer camp program for at-risk youth. Businesses and nonprofit organizations sponsor one or more youth by paying the registration fee for program participants. The...
-
Rikkers Company sold 2,500 units of its product at $98 per unit in year 2011 and incurred operating expenses of $14 per unit in selling the units. It began the year with 740 units in inventory and...
-
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...
-
The steel beam ABCD shown is supported at C as shown and supported at B and D by steel bolts each having a diameter of 5/16 in. The lengths of BE and DF are 2 and 2.5 in, respectively. The beam has a...
-
Outline the steps in the decision- making process for sports participation. What are the three types/levels of consumer decision making? How do the steps in the decision- making process differ for...
-
Describe three sports organizations that have a strong leader who communicates well outside the sports organization. What are the common characteristics of these leaders, and why do these leaders...
-
Why is employee motivation such an important aspect of designing todays jobs? The job characteristics model has five componentsskill variety, task identity, task significance, autonomy, and feedback....
-
Locate the organizational charts for the marketing department of two professional sports organizations. How will this structure facilitate or impede the implementation of their strategic marketing...
-
Explore some of the different tools and techniques used in neurofinance to capture the impact of emotions on trading behaviour. How reliable do you think this evidence is and what are the pros and...
-
The points A and B have coordinates (5, 1) and (1, 7) respectively. C is the mid-point of AB. a) Find the coordinates of C. b) Find the equation of the circle with AB as diameter. c) Find the...
-
Phosgene, COCl2, is a toxic gas used in the manufacture of urethane plastics. The gas dissociates at high temperature. At 400oC, the equilibrium constant Kc is 8.05 104. Find the percentage of...
-
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...
-
2. For Roland Company in Industry F, enter the December 31 adjustments in the following table for prepaid insurance, supplies, accrued wages, accrued revenue, and unearned revenue. Then, complete the...
-
Some commonly occurring quantities. All of the quantities that follow will occur frequently in your study of physics. (a) Expressthe speed of light (3.00 108 m/s) in mi/s and mi/h. (b) Find the speed...
-
A "Jan-van-gent" is the biggest sea-bird on the North-sea. The average mass of this bird is 2.8 kg. When he dives to catch fish his velocity exceeds that of 100km/h. a) If we know that he dives from...
Study smarter with the SolutionInn App