Determine the amount of interest paid in year 8

Assignment Help Finance Basics

Reference no: EM13304941

Varying continuous payments are made to amortize a $4000 loan over 15 years at a force of interest of 8%. The payments are such that the outstanding loan balance is a linear function. At time 3.5, a lump sum payment of $500 is made. The regular (varying) payments continue to be made until the loan is fully repaid.

Determine the amount of interest paid in year 8 (between time 7 and 8), and the amount of principal paid in year 8. At what time will the loan be fully repaid?

Reference no: EM13304941

Questions Cloud

What should be the price of venture pharma shares : If the firm's discount rate is 10%, what should be the price of Venture Pharma's shares, if it did not and if it did undertake the marketing campaign?

Two peers on their legacy statements : Share your legacy statement with your peers and add a short discussion on what you learned through the development of the portfolio process. Respond to at least two peers on their legacy statements.

Find the wavelength of this wave in a vacuum : A certain EM wave has a wavelength of 4 X 10 ^-7 m and a speed of 2.5 X10^8 m/s in a partcular material ( not a vacuum). what is the wavelength of this wave in a vacuum

Find the interest and principal paid in the 30th payment : What is the amount of the first monthly payment? Find the interest and principal paid in the 30th payment, and Construct the amortization table for the first 3 months of the second year and the first 3 months of the last year.

Determine the amount of interest paid in year 8 : Determine the amount of interest paid in year 8 (between time 7 and 8), and the amount of principal paid in year 8. At what time will the loan be fully repaid?

Compute the kinetic energy of the scattered electron : A photon with an initial wavelength of 1.390Ã-10-11 m Compton scatters from an electron which is initially at rest. compute the kinetic energy of the scattered electron

Find the minimum angle for alpha that allows the boxes : Box 1 weighs 284.49N Box 2 weighs 421.83N. The angle between box 2 and the ramp is 37deg. Find the minimum angle for alpha that allows the boxes to remain stationary.

Determine the volume of the nucleus : The nucleus of an atom has a radius of about 7.9Ã-10-15 m. The electron is normally at a distance of about 3.4Ã-10-11 m from the nucleus, Find the volume of the nucleus

What percentage of the portfolio must be invested : Quippy Inc ("Quippy") and Whippy Inc ("Whippy") have common shares listed on the New York Exchange. Assume that the S&P 500 Index represents the market portfolio.

User Account

All Pages