Question: The calculated monthly payment on a loan amortized over five years is rounded up by 0.2 cents to get to the nearest cent. a. Will

The calculated monthly payment on a loan amortized over five years is rounded up by 0.2 cents to get to the nearest cent.
a. Will the adjusted final payment be more than or less than the regular payment?
b. Will the difference between the regular and the final payment be (pick one):
(i) More than
(ii) Less than or
(iii) Equal to 0.2 cents × 60 = 12 cents? Explain.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a Each regular payment includes a02 overpayment T... 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

Students Have Also Explored These Related Accounting Questions!

The calculated monthly payment on a loan amortized over five years is rounded up by 0.2 cents to get to the nearest cent. a. Will the adjusted final payment be more than or less than the regular...

The calculated monthly payment on a loan amortized over 10 years is rounded down by 0.3 cents to get to the nearest cent. a. Will the adjusted final payment be more than or less than the regular...

Question 1 (2 points) The calculated monthly payment on a loan amortized over ten years is rounded down by 0.3 cents to get to the nearest cent. Explain how this rounded payment will impact the final...

The calculated monthly payment on a loan amortized over 10 years is rounded down by 0.3 cents to get to the nearest cent. a. Will the adjusted final payment be more than or less than the regular...

1.Cloverdale Nurseries obtained a $60,000 loan at 7.5% compounded monthly to build an additional greenhouse. There are a total of 76 payments of $1,000 per month. Compute the interest over the first...

Question 5. HINDSIGHT, THEY SAY IS 20/20, So, in retrospect, it is not so surprising that the born in real estate prices of just a few years ago was followed by a painful collapse. Fueled in part by...

Prepare a Statement of Advice (SOA) for the Martins interviewed for Assignment 1. The case study information is attached as a picture at the bottom of the page. As this assignment is to be a SOA for...

i need help from section 3 part A I have already posted this and you asked me to post under advanced option Assignment Tier 1 Financial Planning (Tier1FPPA_AS_v1A3) Page 2 of 92 Student...

Im having trouble with question 3 part A of the attached file. I know and understand her needs but im not sure if im filling out the table correctly ? Assignment Tier 1 Financial Planning...

Bob bought a new car for $28,000 with a loan that will be amortized over five years. The best interest rate he got from his bank for the loan was 1.99 percent compounded annually. What is Bob's...

A 2-ft-long steel bar with a -in diameter is to be used as a torsion spring. If the torsional stress in the bar is not to exceed 30 kpsi, what is the maximum angle of twist of the bar?

Determine the force in each cable used to lift the surge arrester of mass M at constant velocity. Units Used: kN = 103 N Mg = 103 kg Given: M = 9.50 Mg a = 2 m b = 0.5 m θ = 45 deg Fc Fp FB

Which one of the following statements related to capital gains is correct? 0 . 3 pointsMultiple ChoiceReferencesThe capital gains yield is expressed as a percentage of a security ' s total return.The...

Ol Low, Arnt Olson, and Stig Lokum decided to liquidate the LOL partnership on December 31 of the current year, and go their separate ways. The partners share profit and losses equally. As at...

In a recent annual report, Office Depot, Inc. notes that the company entered into an agreement to sell all of its credit card program receivables to financial service companies. Instructions Explain...

On May 10, Rose Company sold merchandise for $4,000 and accepted the customers First Business Bank MasterCard. At the end of the day, the First Business Bank MasterCard receipts were deposited in the...

On July 4, Kathis Restaurant accepts a Visa card for a $250 dinner bill. Visa charges a 4% service fee. Instructions Prepare the entry on Kathis books related to the transaction.

Required information ($ thousands) Net sales Cost of goods sold Current Year $ 801,810 392,887 Prior Year $ 453,000 134,0881 Determine the Prior Year and Current Year trend percents for net sales...

5 Charlie's Handyman Services purchased a new vehicle 1 July 2017. The vehicle cost $57,000, the vehicle needed to be fitted with an attached toolbox to make it useful for the business costing...

SodaPop Company has two operating departments: Mixing and Bottling. Mixing has 490 employees and Bottling has 210 employees. Office costs of $206,000 are allocated to operating departments based on...