Freddie borrowed $25,000 from Cora at a rate of 9% compounded monthly. Freddie has agreed to...

Freddie borrowed $25,000 from Cora at a rate of 9% compounded monthly. Freddie has agreed to pay Cora back in monthly payments over the course of 3 years.

a) Complete the first and fifth payments for the amortization schedule below

b) Complete the last payment for the amortization schedule below

c) If the last payment is different from the previous payments, very briefly, explain the reason for that; otherwise just say “Same Amount”. (1 mark)

d) Calculate the total amount of interest Freddie paid on this loan

Expert Solution

jeff jeffy answered 1 year ago

John borrowed $84,000 at 9.60% compounded monthly. He agreed to repay the loan in equal monthly...

John borrowed $84,000 at 9.60% compounded monthly. He agreed to repay the loan in equal monthly payments over a 15 year amortization term. (a) What is the size of the monthly payment?t Enter answer to 2 decimal places b) Now assume that in part (a) you had rounded the payments DOWN to the nearest dollar, what would be the size of the final payment? Round down to nearest dollar means for example 121.8 is rounded to $121.00 (NOT 122) c)...

Cooper corporation has borrowed $120,000 from the bank at 8% annual interest rate, compounded monthly. The...

Cooper corporation has borrowed $120,000 from the bank at 8% annual interest rate, compounded monthly. The company plans to pay $2000 per month for the first 12 months, and then pay $2500 per month for the next 12 months. Find the remaining balance of the loan after 24 months. (Answer: $82655.21) Please answer in excel format

Mr. Lamb borrowed $85,000 at 11.40% compounded monthly. He agreed to repay the loan in equal...

Mr. Lamb borrowed $85,000 at 11.40% compounded monthly. He agreed to repay the loan in equal monthly payments over 15 years. What is the size of the monthly payment rounded up to nearest cent? How much of the 24th payment is interest? How much of the 137th payment goes towards principal? How much principal was paid down in the third year? Now assume that in part (a) you had rounded the payments down to the nearest dollar, what would be...

Jesse borrowed $10,000 from Tony at an interest rate of 12% per year, compounded monthly. Jesse...

Jesse borrowed $10,000 from Tony at an interest rate of 12% per year, compounded monthly. Jesse convinced Tony to allow him to make monthly payments. The first payment was agreed upon to be $100 and it would be paid exactly one month after receiving the $1 0,000. Jesse promised Tony that fu ture monthly payments would increase by 1% more than the previous payment. Given Jesse’s monthly payment schedule, the number of months necessary to completely pay off the loan...

A company borrowed $3,325,000 at an effective rate of 5.15% (compounded monthly) for 5 years and...

A company borrowed $3,325,000 at an effective rate of 5.15% (compounded monthly) for 5 years and 6 months. The company will NOT make any payments on this loan prior to maturity. To make sure it has the money needed to repay the loan when it comes due, the company is making deposits into a sinking fund at the beginning of each week. The sinking fund pays the company 3.11%. (a) How much will the company need to have at maturity...

(c)Mr. Othman borrowed RM45,000 for five years at an interest rate of 12%, compounded monthly. Payments...

(c)Mr. Othman borrowed RM45,000 for five years at an interest rate of 12%, compounded monthly. Payments are made by monthly instalments. Based on the information given, how much is his monthly loan payment?

(a) What interest rate compounded monthly is equivalent to (has the same APY as) 15% compounded...

(a) What interest rate compounded monthly is equivalent to (has the same APY as) 15% compounded semi-annually? (b) What interest rate compounded continuously is equivalent to (has the same APY as) 15% compounded semi-annually?

The owner of a hotel borrowed $13 000 at 7.8% compounded semi-annually and agreed to repay...

The owner of a hotel borrowed $13 000 at 7.8% compounded semi-annually and agreed to repay the loan by making payments of $750 at the end of every 4 months. How much payments will be needed to repay the loan? How much will be owed at the end of 5 years? By the end of 5 years of payments, what is the total interest payed? A contract valued at $28 000 requires payments of $6500 every 6 months. The first...

How long will it take $100 to grow to at least $150 at an interest rate of 9% compounded monthly?

You have borrowed $39,168 at 2.41%pa compounded monthly with monthly repayments. You decide to repay $632...

You have borrowed $39,168 at 2.41%pa compounded monthly with monthly repayments. You decide to repay $632 per month. How long (in years)will it take you to repay the loan? Please give your answer in years, correct to 2 decimal places

Question