Need answers to all questions please. Need step-by-step answers. Excel is acceptable.
1.
A. For each of the following debt amortized by equal payments made at the end of each payment interval, compute (a) the size of the periodic payments; (b) the interest paid, principal repaid, and the balance for the first period;
|
Debt Principal
|
Repayment Period
|
Payment Period
|
Interest Rate
|
Compounding Period
|
|
2.
|
$8,000.00
|
5 Years
|
1 Month
|
12%
|
Monthly
|
2.
A. For the following debt amortized by equal payments made at the end of each payment interval, compute (a) the size of the periodic payments; (c) the interest paid, principal repaid, and the balance for the second period.
|
Debt Principal
|
Repayment Period
|
Payment Period
|
Interest Rate
|
Compounding Period
|
|
$36,000
|
20 Years
|
6 Months
|
8%
|
Quarterly
|
B. The owner of the Blue Goose Motel borrowed $12 500 at 7.1% compounded semi- annually and agreed to repay the loan by making payments of $700 at the end of every three months.
(a) How many payments will be needed to repay the loan?
(b) How much will be owed at the end of five years?
(c) By the end of five years of payments, how much total interest has been paid?
3.
A. For the following loan, compute the size of the final payment.
|
Principal
|
Periodic Payment
|
Payment Period
|
Payment Made at:
|
Interest Rate
|
Compounding Period
|
|
$15,400
|
$1,600
|
6 Months
|
End
|
8%
|
Quarterly
|
B. A contract valued at $27 500 requires payments of $6000 every six months. The first payment is due in four years and interest is 11% compounded semi-annually.
(a) How many payments are required?
(b) What is the size of the last payment?
(c) How much will be paid in total?
(d) How much of what is paid is interest?
Review Exercise
Milton Investments borrowed $32 000 at 11% compounded semi-annually. The loan is repaid by payments of $4500 due at the end of every six months.
(a) How many payments are needed? (b) How much of the principal will be repaid by the fifth payment? (c) Prepare a partial amortization schedule showing the details of the last three payments and totals.