QUESTION 1

1. Amortization Schedules will always have equal payments.
2. True
3. False

1 points

QUESTION 2

1. The last payment in a Sinking Fund Schedule needs to be calculated different than the rest of the payments.
2. True
3. False

1 points

QUESTION 3

1. Consider the example:
2. A client has requested an amortization schedule for their loan of $5000 with semi-annual payments for 2 years. Interest is 4% compounded quarterly.
3. What is the value for i that will be used when calculating your payment?
4. 0.0201
5. 0.04
6. 0.01
7. 0.0102

1 points

QUESTION 4

1. When filling in your amortization and sinking fund schedules, you still need to check if the compound frequency equals the payment frequency.
2. True
3. False

1 points

QUESTION 5

1. Which of the following last payments in an amortization table is correct. For this question, i = 0.02.
2. Payment #Payment Amount Interest AmountPrincipal AmountBalance2nd Last Payment$200.00$195.57Last Payment$200.00$3.91$195.57$0.00Payment #Payment AmountInterest AmountPrincipal AmountBalance2nd Last Payment$200.00$195.57Last Payment$200.00$3.91$196.09$-0.52Payment #Payment AmountInterest AmountPrincipal AmountBalance2nd Last Payment$200.00$195.57Last Payment$199.58$3.91$195.57$0.00

1 points

QUESTION 6

1. When calculating your payment for different schedules, what types of problems are related to the Amortization Schedules and Sinking Fund Schedules?
2. Amortization Schedule: Present Value
3. Sinking Fund Schedule: Future Value
4. Amortization Schedule: Future Value
5. Sinking Fund Schedule: Future Value
6. Amortization Schedule: Future Value
7. Sinking Fund Schedule: Present Value
8. Amortization Schedule: Present Value
9. Sinking Fund Schedule: Present Value