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...
Show how to use matrix multiplication to bring this matrix to echelon form. 3 1 231 127
Describe why firms internationalize. L01
TopCap Co. is evaluating the purchase of another sewing machine that will be used to manufacture sport caps. The invoice price of the machine is $208,000. In addition, delivery and installation costs...
Discussion: What is Success? For this activity, create your own definition of success. Dictionary.com defines success as the favorable outcome of something attempted. For many students in college,...
Prepare a report for the dean of the college that summarizes your assessment of the nature of cheating by business students at Bayview University. Be sure to include the following items in your...
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...
Calculate the density of H 2 gas at 1.00 atm and 100 C.
1. The KYM company wants to invest $ 523,000 pesos in the bank that guarantees a simple interest rate of 3.32% quarterly. If the company is considering the 8-month investment. What amount will you...
3. (5 points) The uncertainty principle limits our ability to determine simultaneously the position and momentum of a particle. (a) Why were classical physicists unaware of the limitations that this...
CASE STUDY Patient Name Valarie Ramirez Attending Paul F. Buckwalter, MD PATIENT INFORMATION DOB 08/04/1986 Allergies MAN 00-AA-006 Penicillin Other Information Past HX: AB x1 Valarie Ramirez arrives...
Petesy Corporation is preparing its Master Budget for 2019. Budget information is as follows: SalesProduction CostOperating Expenses 20191 st Quarter P280,000P192,000P64,000 2 nd Quarter 320,000...
A steady flow of 20 m3/s of moist air at TDB = 35iC, TWB = 25iC, 100 kPa (state 1) is dehumidified by first cooling it and condensing out moisture (state 2), then reheating it to 20iC and 50% R.H....
Are the leadership and management development programs provided to our managers well equipped to help develop the skills and competences needed to adequately employ an integrative responsible...
1-Stern observed all of the following results EXCEPT _______ in his experiment. A-one of the recombinant phenotypes was associated with an X chromosome of normal length B-the number of car, B+ male...
(Appendix) George Bell Inc. reported sales of $2 million for 2006. Accounts receivable decreased $400,000 and accounts payable increased $325,000. Compute cash receipts from customers, assuming that...
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...
Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. The company has two manufacturing departments --Molding and Fabrication. It started, completed, and...
Horizontal Analysis The comparative accounts payable and long-term debt balances of a company are provided below. Current Year Previous Year Accounts payable $47,286 $63,900 Long-term debt 85,492...
On January 1, Year 1, Price Company issued $140,000 of five-year, 7 percent bonds at 97. Interest is payable annually on December 31. The discount is amortized using the straight-line method. Record...

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