Question: Construct a complete amortization schedule and calculate the total interest. An investment annuity of $200,000 earning 4.5% compounded quarterly is to make payments at the

Construct a complete amortization schedule and calculate the total interest. An investment annuity of $200,000 earning 4.5% compounded quarterly is to make payments at the end of every three months with a 10-year amortization.

a. What is the size of the quarterly payment?

b. Calculate the principal portion of the 20th payment.

c. Calculate the interest portion of the 33rd payment.

d. Calculate how much the principal will be reduced in the second year.

e. Calculate the total interest paid in the seventh year.

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 each question, show the formula necessary to solve problem, and the formula with correct values from the question (even if you are using the financial calculator). If using the financial...

Please see the attached assignment, if you have any questions please let me know. NOTE: - Please maintain at least 6 decimals while solving the question, and round to 2 decimals for the final answer....

solve the given problem question A B and C in the given detail using excel. please provide complete solution for all questions Tiffany owns an event management business that is currently operating...

Tiffany owns an event management business that is currently operating from her garage. She would like to transform her guest room into a home office. However, she does not have her own capital to...

Please answer question #6 in it's entirety :) Thank you. Finance 221 Time Value of Money Excel Project Compass Submission Due by 11:59 PM, Tuesday, Feb. 9 Please use Excel financial functions or...

A: Calculate the present value of $5,000 received 5 years from today if your investments pay: a. 6% compounded annually b. 8% compounded annually c. 10% compounded annually d. 10% compounded...

3. Tiffany owns an event management business that is currently operating from her garage. She would like to transform her guest room into a home office. However, she does not have her own capital to...

Tiffany owns an event management business that is currently operating from her garage. She would like to transform her guest room into a home office. However, she does not have her own capital to...

PowerPoint Assignment for BUS 401: Principles of Finance You have been asked by a manager in your organization to put together a training program explaining Net Present Value (NPV) and Future Value...

1. Calculate the present value of $5,000 received 5 years from today if your investments pay: a. 6% compounded annually b. 8% compounded annually c. 10% compounded annually d. 10% compounded...

What is meant by past service cost? When is past service cost recognized as pension expense?

If bond prices fall, will individuals want to hold more or less money? Explain your answer.

*CA17.9 (LO 5) Writing (Long-Term ContractPercentage-of-Completion) Widjaja Group is accounting for a long-term construction contract using the percentage-of-completion method. The 4-year contract is...

This chapter introduces the idea of in - flight intimacy ( McGill , 1 9 8 5 ) . Do you engage in such disclosure? If so , why? If not, how do you resist self - disclosure in those situations? Please...

When is it appropriate to show grace toward others?

Think about the most effective work climate youve ever experienced. Describe the communication in that climate. How does the communication in that situation refl ect the skills and principles...

Do you perceive any relationship-level meanings that arent being addressed in this conversation?