Compute the size of the final payment

Reference no: EM131002142

Need answers to all questions please. Need step-by-step answers. Excel is acceptable.

A. For each of the following debt amortized by equal payments made at the end of each payment interval, compute (a) the size of the periodic payments; (b) the interest paid, principal repaid, and the balance for the first period;

	Debt Principal	Repayment Period	Payment Period	Interest Rate	Compounding Period
2.	$8,000.00	5 Years	1 Month	12%	Monthly

A. For the following debt amortized by equal payments made at the end of each payment interval, compute (a) the size of the periodic payments; (c) the interest paid, principal repaid, and the balance for the second period.

Debt Principal	Repayment Period	Payment Period	Interest Rate	Compounding Period
$36,000	20 Years	6 Months	8%	Quarterly

B. The owner of the Blue Goose Motel borrowed $12 500 at 7.1% compounded semi- annually and agreed to repay the loan by making payments of $700 at the end of every three months.

(a) How many payments will be needed to repay the loan?

(b) How much will be owed at the end of five years?

A. For the following loan, compute the size of the final payment.

Principal	Periodic Payment	Payment Period	Payment Made at:	Interest Rate	Compounding Period
$15,400	$1,600	6 Months	End	8%	Quarterly

B. A contract valued at $27 500 requires payments of $6000 every six months. The first payment is due in four years and interest is 11% compounded semi-annually.

(a) How many payments are required?

(b) What is the size of the last payment?

(d) How much of what is paid is interest?

Review Exercise

Milton Investments borrowed $32 000 at 11% compounded semi-annually. The loan is repaid by payments of $4500 due at the end of every six months.

(a) How many payments are needed? (b) How much of the principal will be repaid by the fifth payment? (c) Prepare a partial amortization schedule showing the details of the last three payments and totals.

Reference no: EM131002142

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