Question: A $45,000 loan at 8.7% compounded semiannually is to be repaid by semiannual payments of $3,300 (except for a smaller final payment). (Do not round

A $45,000 loan at 8.7% compounded semiannually is to be repaid by semiannual payments of $3,300 (except for a smaller final payment). (Do not round intermediate calculations and round your final answers to 2 decimal places.)

a. What will be the principal component of the sixteenth payment? Principal $

b. What will be the interest portion of the sixth payment? Interest $

c. How much will Payments 8 to 14 inclusive reduce the principal balance? Principal reduction $

d. How much interest will be paid in the sixth year? Interest paid $ e. What will be the final payment? Final payment $

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

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 Finance Questions!

For a simplified analysis of the vibration of an airplane in the vertical direction, a threedegree-of-freedom model, as shown in Fig. 6.26, can be used. The three masses indicate the masses of the...

awarded Scored A $ 4 6 , 0 0 0 loan at 8 . 9 % compounded semiannually is to be repaid by semiannual payments of $ 3 , 4 0 0 ( except for a smaller final payment ) . ( Do not round intermediate...

A $ 3 9 , 0 0 0 loan at 8 . 2 % compounded semiannually is to be repaid by semiannual payments of $ 2 , 7 0 0 ( except for a smaller final payment ) . ( Do not round intermediate calculations and...

A $54,000 loan at 10% compounded semiannually is to be repaid by semiannual payments of $4,200 (except for a smaller final payment). (Do not round intermediate calculations and round your final...

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...

please help! A $41,000 loan at 8.6% compounded semiannually is to be repaid by semiannual payments of $2,900 (except for a smaller final payment). (Do not round intermediate calculations and round...

A $40,000 loan at 8.4% compounded semiannually is to be repaid by semiannual payments of $2,800 (except for a smaller final payment). (Do not round intermediate calculations and round your final...

A $44,000 loan at 8.6% compounded semiannually is to be repaid by semiannual payments of $3,200 (except for a smaller final payment). (Do not round intermediate calculations and round your final...

A $51,000 loan at 9.6% compounded semiannually is to be repaid by semiannual payments of $3,900 (except for a smaller final payment). (Do not round intermediate calculations and round your final...

A $56,000 loan at 10.2% compounded semiannually is to be repaid by semiannual payments of $4,400 (except for a smaller final payment). (Do not round intermediate calculations and round your final...

Recall that the beef cattle described in Exercise 25 had a mean weight of 1152 pounds, with a standard deviation of 84 pounds. a) Cattle buyers hope that yearling Angus steers will weigh at least...

You have been asked by a colleague to explain to him what is meant by the TELOS criteria for evaluating information systems project, laying particular emphasis on how to make the most effective and...

RQ 4.3. What are the annual payments for a 4-year, $4,000 loan if the interest rate is 9% per year? Group of answer choices $1,132.73 $1,234.67 $1,251.45 $1,301.78

On 1 March 2007 DB Limited issued R560 000 15% debentures at R98. The debentures were to be redeemed at par in four equal annual payments starting 28 February 2010. Required: Journalise the above...