The interest rate on a $100,000 loan is 7.2% compounded semiannually. The monthly payments on the loan

Question:

The interest rate on a $100,000 loan is 7.2% compounded semiannually. The monthly payments on the loan are $700.
a. Calculate the interest component of Payment 221.
b. Calculate the principal component of Payment 156.
c. Calculate the final payment.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Business Mathematics In Canada

ISBN: 978-0070009899

7th edition

Authors: Ernest Jerome

See More Books

Question Posted: Jan 20, 2016 08:04 AM

See More Questions

The interest rate on a $100,000 loan is 7.5% compounded quarterly. a. What quarterly payments will reduce the balance to $75,000 after five years? b. If the same payments continue, what will be the...
The interest rate on a $100,000 loan is 9% compounded monthly. How much longer will it take to pay off the loan with monthly payments of $1000 than with monthly payments of $1050?
The interest rate on a $100,000 loan is 7.5% compounded monthly. What must be the monthly payment for the loan to be repaid in: a. 5 years? b. 10 years? c. 15 years? d. 20 years? In each case, also...
Use the present value tables in Appendix A and Appendix B to compute the NPV of each of the following cash inflows. a. $89,000 received at the end of six years. The discount rate is 4 percent. b....
Canopy Corporation rents out tents for large parties thrown for such things as graduations, weddings, and birthdays. Part of Canopys financial statements for last year is as follows: Required What is...
Why is proper management of fixed assets crucial to the success of a firm?
How much does a tailwind increase landing distance?
The Ploughman family owns and operates a 640-acre farm that has been in the family for several generations. The Ploughmans always have had to work hard to make a decent living from the farm and have...
2.5. Suppose that we switch the order of the first two statements in Peter- son's algorithm: boolean intendToEnter0 = false, intendToEnter1 = false; int turn; // no initial value for turn is needed....
UNO Entertainment Group releases its financial reports for the fiscal year ended on 31st December 2020. The following information may be gleaned from the 2020 income statements of UNO Entertainment...
Quarterly payments of $3000 are required on an $80,000 loan at 8.0% compounded quarterly. a. Calculate the interest component of Payment 30. b. Calculate the principal component of Payment 9. c....
A $30,000 loan at 6.7% compounded annually requires monthly payments of $450. a. Calculate the interest component of Payment 29. b. Calculate the principal component of Payment 65. c. Calculate the...
Consider the assets and liabilities associated with the experience of business failure. Should entrepreneurs who have experienced business failure try again?
Find and describe a Web site for a health club. How does the information relate to the consumer decision- making process to join the club?
How do rational choice theorists explain addictive behaviour as a rational choice, and are their hypotheses explained by the econometric evidence? What are some of the problems with this econometric...
Find and describe two sports Web sites that specifically appeal to children. How does this information relate to the process of consumer socialization?
What are nifs and sophisciates and how do the ways they deal with present bias differ? Illustrate with some examples.
Are people always an organizations most valuable asset? Why or why not? Suppose your boss asked you to summarize the major peoplerelated concerns related to opening an office in India. What issues...
In the diagram below, ABCD is a sector of a circle with centre B and radius 5 m. Given that the length of the arc ADC is 15/4 m, find a) The exact size of angle ABC in radians b) The exact area of...
On October 1, 2021, Adoll Company acquired 2,600 shares of its $1 par value stock for $38 per share and held these shares in treasury. On March 1, 2023, Adoll resold all the treasury shares for $34...
Petty Cash, Bank Reconciliation Bill Jovi is reviewing the cash accounting for Nott leman, Inc., a local mailing service. Jovi?s review will focus on the petty cash account and the bank...
Bank Reconciliation and Adjusting Entries the cash account of Aguilar Co. showed a ledger balance of $3,969.85 on June 30, 2010. The bank statement as of that date showed a balance of $4,150. Upon...
Bank Reconciliation and Adjusting Entries Presented below is information related to Haselhof Inc. Balance per books at October 31, $41,847.85; receipts $173,523.91; disbursements $164,893.54. Balance...
A 3.0 resistor is connected across the terminals of a 100 V battery. If 0.50 A of current flows, what is the internal resistance of the battery?
The rate of blood flow through the aorta is Q = 100 cm/s. A capillary has an average cross sectional area of Acap = 3 x10 -11 m and supports a blood speed of cap = 1 mm/s. From this information, what...
A particle is trapped in a potential well described by U(x)=16-b where U is in joules, x is in meters, and b= 4.0 J. Find the force on the particle when it's at a) x=2.2m and b) x=-1.7m.

The interest rate on a $100,000 loan is 7.2% compounded semiannually. The monthly payments on the loan

Question:

Step by Step Answer:

Given PV 100000 PMT 700 i 72 2 36 Then c 212 06 an...View the full answer

Business Mathematics In Canada

Students also viewed these Accounting questions