An $8000 loan is to be amortized with equal monthly payments over a 2 year period...

An $8000 loan is to be amortized with equal monthly payments over a 2 year

period at j (12) = 8 %. Find the outstanding principal after 7 months and split the

8 th payment into principal and interest portions.

outstanding principal after 7 months is?

the principal in the 8 th payment is?

the interest in the 8 th payment is?

Solutions

Expert Solution

Calculating Monthly Payment,

Using TVM Calculation

PMT = [PV = 8,000, FV = 0, N = 24, I = 0.08/12]

PMT = $361.82

Calculating Loan Balance after 7 months,

Using TVM Calculation,

FV = [PV = 8,000, PMT = -361.82, N = 7, I = 0.08/12]

FV = $5,796.92

Interest paid in 8th payment = 5,796.92(0.08/12) = $38.65

Principal paid in 8th payment = 361.82 - 38.65

Principal paid in 8th payment = $323.17

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

A loan of EGP 30,000 is to be amortized with 10 equal monthly payments at j12...

A loan of EGP 30,000 is to be amortized with 10 equal monthly payments at j12 = 12%. Find the outstanding principal after paying the third monthly payment. choose: 21310.04 3167.9 24235.56

Consider a mortgage loan of $300,000, to be amortized over thirty years with monthly payments. If...

Consider a mortgage loan of $300,000, to be amortized over thirty years with monthly payments. If the annual percentage rate on this mortgage is 4% : What is the monthly payment on this loan? What is the balance of this loan AFTER the 14th payment is made? How much of the 8th payment is allocated to interest? How much of the 19th payment is allocated to principal?

A loan amount of L is amortized over six years with monthly payments (at the end...

A loan amount of L is amortized over six years with monthly payments (at the end of each month) at a nominal interest rate of i(12) compounded monthly. The first payment is 500 and is to be paid one month from the date of the loan. Each subsequent payment will be 1% larger than the prior payment. (a) If i(12) = 9%, find the principal repaid in the 25th payment. (b) If i(12) = 12%, find the amount of loan...

a) A loan of $5,000 is to be repaid in equal monthly payments over the next...

a) A loan of $5,000 is to be repaid in equal monthly payments over the next 2 years. Determine the payment amount if interest is charged at a nominal annual rate of 15% compounded semiannually. b) Net receipts from a continuously producing oil well add up to $120,000 over 1 year. What is the present amount of the well if it maintains steady output until it runs dry in 8 years if r = 10% compounded continuously?

A loan is being amortized over n-years with monthly payments of $295.32. The rate of interest...

A loan is being amortized over n-years with monthly payments of $295.32. The rate of interest on the loan is j12=12%. The principal repaid in the 25th payment is $206.41.What is the size of the loan?

You obtain a loan of $300,000 at 5.75% amortized over thirty years with monthly payments.

Can you please help me the steps of this Finance Math problem?You obtain a loan of $300,000 at 5.75% amortized over thirty years with monthly payments. You are required to pay closing costs and fees of 1.0% of the loan amount to the lender. What is the yield of the loan if paid off at maturity?

You obtain a loan of $150,000 at 5.875% amortized over thirty years with monthly payments.

You obtain a loan of $150,000 at 5.875% amortized over thirty years with monthly payments. You are required to pay closing costs and fees of 2.0% of the loan amount to the lender. What is the yield of the loan if paid off at the end of 5 years?

A loan is amortized over five years with monthly payments at an annual nominal interest rate...

A loan is amortized over five years with monthly payments at an annual nominal interest rate of 6% compounded monthly. The first payment is 1000 and is to be paid one month from the date of the loan. Each succeeding monthly payment will be 3% lower than the prior payment. Calculate the outstanding loan balance immediately after the 40th payment is made.

loan of size A is to be amortized by monthly payments of $1000. The rate of...

loan of size A is to be amortized by monthly payments of $1000. The rate of interest on the loan is j 12 = 18%. The outstanding balance immediately after the 4 th monthly payment is $12,000. How much principal is repaid in the 12 th monthly payment? $914.50 $923.72 $910.07 $896.62

You obtain a loan of $150,000 at 5.875% amortized over 30 years with monthly payments. You...

You obtain a loan of $150,000 at 5.875% amortized over 30 years with monthly payments. You are required to pay closing costs and fees of 2% of the loan amount to the lender. What is the yield of the loan if paid off at the end of 5 years?

Subjects