Reference no: EM132867657

Questions -

Q1) Brandon received a loan of $14,000 at 5.50% compounded quarterly. He had to make payments at the end of every quarter for a period of 1 year to settle the loan.

a. Calculate the size of payments.

b. Fill in the amortization schedule, rounding the answers to two decimal places.

Q2) General Computers Inc. purchased a computer server for $75,000. It paid 25.00% of the value as a down payment and received a loan for the balance at 10.50% compounded semi-annually. It made payments of $2,550.49 at the end of every quarter to settle the loan.

a. How many payments are required to settle the loan?

b. Fill in the partial amortization schedule for the loan, rounding your answers to two decimal places.

Q3) Phillip received a loan of $35,000 at 6.25% compounded quarterly. He had to make payments at the end of every quarter for a period of 7 years to settle the loan.

a. Calculate the size of payments.

b. Fill in the partial amortization schedule for the loan, rounding your answers to two decimal places.

Q4) Jacob's student loan of $28,500 at 2.62% compounded quarterly was amortized over 5 years with payments made at the end of every month. What was the principal balance on the loan after 4 years?

Q5) A lease of $8,500 had to be repaid with payments of $350 at the beginning of every month. The interest rate charged was 10.00% compounded monthly.

a. How many payments are required to repay the debt?

b. What is the size of the final payment?

Q6) Bianca purchased a machine for $21,500 for his company. He paid 5.00% of this amount as a down payment and financed the rest at 5.32% compounded quarterly. He paid $1,125 at the end of every quarter to settle the loan.

a. What was the principal portion of payment number 4?

b. What was the interest portion of payment number 4?

Q7) Steven purchased a house for $475,000. He made a down payment of 30.00% of the value of the house and received a mortgage for the rest of the amount at 4.92% compounded semi-annually amortized over 25 years. The interest rate was fixed for a 4 year period.

a. Calculate the monthly payment amount.

b. Calculate the principal balance at the end of the 4 year term.

c. Calculate the monthly payment amount if the mortgage was renewed for another 4 years at 4.72% compounded semi-annually?

Q8) A 20-year, $410,000 mortgage at 1.50% compounded annually was settled with quarterly payments.

a. What is the size of the quarterly payments?

b. How much will the amortization period be shortened by if weekly payments of $525 are made instead of the quarterly payments?

c. How much interest will be saved if the weekly payments of $525 are made instead of the quarterly payments?

Q9) A mortgage for a condominium had a principal balance of $46,300 that had to be amortized over the remaining period of 6 years. The interest rate was fixed at 3.92% compounded semi-annually and payments were made monthly.

a. Calculate the size of the payments.

b. If the monthly payments were set at $823, by how much would the time period of the mortgage shorten?

c. If the monthly payments were set at $823, calculate the size of the final payment.