Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The interest rate on a $ 5 5 , 0 0 0 loan is 8 . 2 % compounded semiannually. Quarterly payments will pay off

The interest rate on a $55,000 loan is 8.2% compounded semiannually. Quarterly payments will pay off the loan in fourteen years. (Do not round intermediate calculations and round your final answers to 2 decimal places.)
a. Calculate the interest component of Payment 12.
Interest $
b. Calculate the principal component of Payment 49.
Principal $
c. Calculate the total interest in Payments 39 to 50 inclusive.
Total interest $
d. Calculate the reduction of principal in Year 4.
Principal reduction $

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

Recommended Textbook for

Business Mathematics In Canada

Authors: Ernest Jerome

7th edition

978-0071091411, 71091416, 978-0070009899

More Books

Students also viewed these Finance questions

Question

Draw a picture consisting parts of monocot leaf

Answered: 1 week ago