Please help me answer the following, Only the odd numbered problems 1,3,5,7,9. I really need help right now, Shortcut answers is okay as long as the process are still clear, and accurate answers please...thank you!
EXERCISES 4.3 01. An obligation will be amortized by monthly payments of 350 for 6 years and 8 months with interest rate of 6% compounded monthly. How much of the 50" payment is paid to the interest and how much is paid to the principal? 02. A debt will be amortized by annual payments of 3,000 for 12 years with interest rate of 9%. How much of the 10" payment is paid to the interest and how much is paid to the principal? 03. A debt will be discharged, principal and interest included, at 7% payable annually by payments of 750 at the end of each year for 5 years. Without making up the table, find the interest paid and the principal repaid just after the third payment of 750. 04. A loan will be paid, principal and interest included, at 6% payable annually by payments of 950 at the end of each year for 6 years. Without making up the table, find the interest paid and the principal repaid just after the fifth payment of 950. 111 AMORTIZATION OF DEBT AND SINKING FUND 4.4 Final Payment 05. A loan is being discharged, principal and interest included, at 6% payable semiannually by payments of 800 at the end of each 6 months. On a certain payment date, just after the regular payment is made, the remaining liability of the debtor is 8,945.25. How much principal remains unpaid just after the next payment of 800? 06. A loan is being discharged, principal and interest included, at 7% payable semiannually by payments of 600 at the end of each 6 months. On a certain payment date, just after the regular payment is made, the remaining liability of the debtor is 8,945.25. How much principal remains unpaid just after the next payment of 600? 07. A debt of 25,000 bearing interest at 5% compounded quarterly is to be amortized with quarterly payments for 6 years. Find the interest paid and the principal repaid after the 8" payment. 08. A debt of 15,000 bearing interest at 8% compounded semiannually is to be amortized with semiannual payments for 4 years. Find the interest paid and the principal repaid after the 4" payment. 09. An 800,000 brand new car is purchased with a down payment of 100,000 and equal monthly payments for 40 months. If the interest rate is 18% compounded monthly, how much of the second payment goes for the interest and how much toward reducing the principal? 10. A man buys a 235,000 house and pays 15,000 down payment. He gets a 15-year mortgage for the balance. If the interest rate is at 18% compounded monthly, how much of the second payment goes for the interest and how much toward reducing the principal?4.3 INTEREST AND PRINCIPAL INCLUDED IN ANY AMORTIZATION PAYMENT If the amount of principal and interest included in any amortization payment is desired it is not necessary to construct the entire amortization schedule. The following steps are recommended. 1. Find the outstanding principal just after the preceding payment. 2. Compute the interest for one interval on the principal just obtained in order to find the interest paid on the next date. 3. Subtract this amount from the periodic payment to finally find the principal repayment. Example 5. A loan of 4,000 will be amortized by quarterly payments of 200 at the end of each quarter for as long as necessary. If money is worth 7% compounded quarterly, find A) the outstanding principal after 5 years; and B) the principal and interest payment on the 20 payment Solution: Given: A = 4,000, R = 200. j =7%, m =4 A. k= 21 OPK = A(1+ 1 ) 1 - RS III OP21 = 4000(1.075; - 20053010.0175 OP = 4000(1.0175) 20 -200 (1.0175)20 21 0.0175 OP 21 = 918.79B. k= 20 OPK = A(1+1) " - RS ni OP20 = 4000(1.0175) - 200$1910.0175 20= 4000(1.0175) 19 -200 (1.0175)19 -1 0.0175 OP 20 = 1,099.55 20 = 20 m) 120 = (1099.55)(0.0175) I20 = 19.24 P20 = R - 120 P20 = 200 -19.24 P20 = 180.76 Example 6. Ivan lent 45,000 to Frances to be paid by 12 equal payments of 4,000 at 8% compounded semiannually. What principal is repaid on the 8" payment period? Solution: Given: A = 45,000, R = 4,000, j = 8%, m = 2, n = 12, k =8 OPK = Rank+1li OP8 = 4000#510.04 OP: = 4000 1 - (1.04)-5 0.04 OPS = 17,807.29 8 m Is = (17807)(0.04) Is = 712.29 Pg = R-18 Pg = 4000-712.29 Pg = 3,287.71 Example 7. In buying an appliance, Mrs. Ong constructs a debt of 5,400. The debt will be amortized by 18 monthly payments with an interest of 6% compounded monthly. Find how much of the 10" payment goes to interest and how much goes to principal.Solution: Given: A = 5,400, j = 6%, m = 12, t= 18 months, n =18, k = 10 A RE ami 5400 RE 180.025 5400 R = 1- (1.025)18 0.025 R = (5400 0.025 1 - (1.025)18 R = 376.22 OPK = Rank+1li OP10 = 376.22a910.005 OP = 376.22- 1 - (1.005)-9 0.005 OP 10 = 3,302.86 10 = (3302.86)(0.005) 10 = 16.51 P = R - 1 P10 = 376.22 -16.51 P10 = 359.71
