Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The debt is amortized by equal payments made at the end of each payment interval. Compute ( a ) the size of the periodic payments;

The debt is amortized by equal payments made at the end of each payment interval. Compute (a) the size of the periodic payments; (b) the outstanding principal at the time indicated; (c) the interest paid by the payment following the time indicated for finding the outstanding principal; and (d) the principal repaid by the same payment as in part c .
\table[[Debt Principal,\table[[Repayment],[Period]],\table[[Payment],[Interval]],Interest Rate,\table[[Conversion],[Period]],\table[[Outstanding],[Principal After:]]],[$12,000.00,8 years,1 month,8%,quarterly,88th payment]]
(a) The size of the periodic payment is $169.32.
(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
(b) The outstanding principal after the 8 th payment is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions

Question

10. What was the most difficult aspect of your past job?

Answered: 1 week ago