$100,000 Amortizing Loan
9% stated rate
20-year amortization
5-year balloon
Annual Payments
a) Calculate annual payment
b) Calculate balloon payment
c) Value at 12% yield
d) Prepare an amortization table
a) A loan has a stated annual rate of 15.07%. If the loan
payments are made monthly and interest is compounded monthly, what
is the effective annual rate of interest?
b) You invest $460.00 at the beginning of every year and your
friend invests $460.00 at the end of every year. If you both earn
an anual rate of return of 11.07%, how much more money will you
have after 15.0 years?
c) You currently have $3,531.00 in a retirement...
Amortization with Equal Payments. Prepare an
amortization schedule for a three-year loan of $57,000. The
interest rate is 8 percent per year, and the loan calls for equal
annual payments. How much interest is paid in the third year? How
much total interest is paid over the life of the loan?
a. Prepare the amortization schedule for a thirty-year loan of
$100,000. The APR is 3% and the loan calls for equal monthly
payments. The following table shows how you should prepare the
amortization schedule for the loan. Month Beginning Balance Total
Payment Interest Payment Principal Payment Ending Balance 1
$100,000.00
b. Use the annuity formula to find how much principal you still
owe to the bank at the end of the third year. Check that this value
is the same...
Problem 6-55 Amortization with Equal Payments [LO3]
Prepare an amortization schedule for a five-year loan of
$61,000. The interest rate is 8 percent per year, and the loan
calls for equal annual payments. (Do not round intermediate
calculations and round your answers to 2 decimal places, e.g.,
32.16. Leave no cells blank - be certain to enter "0" wherever
required.)
Year
Beginning
Balance
Total
Payment
Interest
Payment
Principal
Payment
Ending
Balance
1
$
$
$
$
$
2
...
Create a loan amortization table for a $100,000 2 year loan at
4.875% annual interest payable semi-annually:
a) Calculate the payment amount.
b) Do the loan amortization table.
c) What is the journal entry to receive the third payment?
4. Calculate the payments and amortization table of a 3-year car
loan for $12,000 at a 6% rate of interest. The loan will be repaid
with three annual payments.
a. Prepare the amortization schedule for a thirty-year variable
interest loan with monthly payments of $250,000 at an APR of 6.8%.
specifies monthly compounding.
b.What is the interest payment and principal amounts in the
110th payment?
c. Use the annuity formula to find how much principal you still owe
to the bank for the 110th payment. Check that this value is the
same you have in your amortization schedule.
d. How much in total interest will you pay?
e. Suppose...