Natalie received a 15 year loan of $345,000 to purchase a house. The interest rate on the loan was 5.10% compounded semi-annually.

a. What is the size of the monthly loan payment?

Round to the nearest cent

b. What is the balance of the loan at the end of year 3?

Round to the nearest cent

c. By how much will the amortization period shorten if Natalie makes an extra payment of $30,000 at the end of year 3?

years and month?

2.

A design studio received a loan of $6,700 at 4.20% compounded semi-annually to purchase a camera. If they settled the loan in 2 years by making quarterly payments, construct the amortization schedule for the loan and answer the following questions:

a. What was the payment size?

Round to the nearest cent

b. What was the size of the interest portion on the first payment?

Round to the nearest cent

c. What was the balance of the loan at end of the first year?

Round to the nearest cent

d. What was the size of the interest portion on the last payment?

Round to the nearest cent

3.

Heather purchased a machine for $23,000 for her company. She paid 5.00% of this amount as a down payment and financed the rest at 5.32% compounded quarterly. She paid $1,125 at the end of every quarter to settle the loan.

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

Round to the nearest cent

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

Round to the nearest cent

4.

Tan Company purchased a large server for $43,000. The company paid 25.00% of the value as a down-payment and received a loan for the balance at 4.25% compounded monthly. The loan has a term of 3 years and Tan Company has to make month-end payments to settle the loan.

a. What is the size of the month-end payments?

Round to the nearest cent

b. What was the total amount paid to settle the loan?

Round to the nearest cent

c. Calculate the total amount of interest paid throughout the term of the loan.

Round to the nearest cent

5. Chelsea's student loan of $24,000 at 4.72% 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 3 years?

Round to the nearest cent

6. Cody purchased a house for $500,000. She made a down payment of 15.00% of the value of the house and received a mortgage for the rest of the amount at 4.02% compounded semi-annually amortized over 20 years. The interest rate was fixed for a 4 year period.

a. Calculate the monthly payment amount.

Round to the nearest cent

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

Round to the nearest cent

c. Calculate the monthly payment amount if the mortgage was renewed for another 4 years at 6.72% compounded semi-annually?

Round to the nearest cent