Question: The interest rate on a $15,400 loan is 9.8% compounded semiannually. Semiannual payments will pay off the loan in eight years. (Do not round

The interest rate on a $15,400 loan is 9.8% compounded semiannually. Semiannual

The interest rate on a $15,400 loan is 9.8% compounded semiannually. Semiannual payments will pay off the loan in eight years. (Do not round intermediate calculations. Round the PMT and final answers to 2 decimal places.) a. Calculate the interest component of Payment 11. Interest b. Calculate the principal component of Payment 7. Principal c. Calculate the interest paid in Year 7. Interest paid d. How much do Payments 7 to 10 inclusive reduce the principal balance? Principal reduction %24

Step by Step Solution

★★★★★

3.46 Rating (146 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

To solve this problem we need to calculate various components of a loan with equal semiannual payments compounded semiannually Given Loan amount Princ... 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 Finance Questions!

Monica bought a $1800 stereo system for 15% down, with the balance to be paid with interest at 16% compounded monthly in six equal monthly payments. Construct the fll amortization schedule for the...

Monica bought a $2200 stereo system for 20% down and payments of $352 per month (except for a smaller final payment) including interest at 16% compounded monthly. Construct the full amortization...

The interest rate on a $65,000 loan is 9.8% compounded semiannually. Quarterly payments will pay off the loan in twelve years. (Do not round intermediate calculations and round your final answers to...

Please see the attachment and answer all questions 1. Compute the cost of not taking the following cash discounts. (Use a 360-day year. Do not round intermediate calculations. Input your final...

plz answers my questions fast The interest rate on a $102,000 loan is 7.1% compounded semiannually. The monthly payments on the loan are $720. (Round your answers to 2 decimal places.) a. Calculate...

14. Compute the cost of not taking the following cash discounts. (Use a 360-day year. Do not round intermediate calculations. Input your nal answers as a percent rounded to 2 decimal places.) Cost of...

Eulis Co. has identified an investment project with the following cash flows. Year Cash Flow 1 $ 1,010 2 820 3 1,450 4 1,810 If the discount rate is 12 percent, what is the present value of these...

(4) 1-Investment X offers to pay you $7,900 per year for 9 years, whereas Investment Y offers to pay you $10,800 per year for 5 years. If the discount rate is 8 percent, what is the present value of...

rue/False Indicate whether the statement is true or false. ____1.If the discount (or interest) rate is positive, the present value of an expected series of payments will always exceed the future...

I need help with the excel formulas. I know most of the anwsers but i need help on what formulas to type in for the cells AutoSave Excel Template - Excel Search Normal Bad Good 1 Conditional Formatas...

Read the case, Applying Quality Function Deployment to a University Support Service, page 366 and answer the questions at the end. 1. Do you agree with the "relative importance" of measures of the...

A bungee jumper models her descent and subsequent bounces according to the function h(x) = 2.3x4 - 14.1x3 + 29.6x-24.9x + 9.1. What adjustments could she make to this model so that she does not hit...

A transaction or other event in which an acquirer obtains control of a business.

The vertical position, x(t), of a grinding wheel is controlled by a closed loop system. The input to the system is the desired depth of grind, and the output is the actual depth of grind. The...

Write a Java programthat can simulate a simple calculator, using the Java console as the exclusive input and output device. That is, each input to the calculator, be it a number, like 12.34 or 1034,...

Redo Problem 11 using MATLAB in the following way: a. MATLAB will generate the root locus for the uncompensated system along with the 0.8 damping ratio line. You will interactively select the...

Rivera Company has several processing departments. Costs charged to the Assembly Department for November 2017 totaled $2,280,000 as follows. Production records show that 35,000 units were in...

A beam of electrons moving in the x-direction at 8.7 Mm/s enters a region where a uniform 180-G magnetic field points in the y-direction. The boundary of the field region is perpendicular to the...

TOPIC: Restorative Justice and Sexual Assault/Rape Please give a thorough and detailed explanation about the topic as it relates to Restorative Justice and list the references where the information...

Hello, I 1.Research the capacity of municipalities in Bosnia and Herzegovina for issuing a bonds? 2.What are pros and cons of bond financing? Compare long-term source of financing between Bosnia and...

Need to complete 10 homework but now i need 5 homework then after some time 5 homework more. Here it is attachment. Chapter 5 HW Questions [ALL OF THESE MUST BE DONE IN EXCEL] 1. Future value: Chuck...

B DE Enter your name in this box F G H ANN L M N 5 6 Tutorial 6 - Calculating Loan Payments and Loan Amortization You will determine the loan payment and amortization schedule fee a fixed rate loan...

Hello please answer to the following question. good luck 29. Annuities. You can buy a car that is advertised for $24,000 on the following terms: (a) pay $24,000 and receive a $2,000 rebate from the...

I need chapters 18, 19, 20, and 21 for the workbook for Personal Finance by Madura!! Please help!!! Personal Finance, Fifth Edition by Jeff Madura BUILDING YOUR OWN FINANCIAL PLAN WORKBOOK INDEX...

SOMEONE PLEASE HELP ME GIVE ALL THE ANSWERS!!!!! MY EXAM IS ON 13th MORNING! SO PLEASEEEEE!!!!! 2. An investment is expected to pay the following: C 1 = $2,300, C 2 = $2,600, C 3 = $2,900, and then...