Murray Countertops borrowed $6500 at an annual rate of 4% to buy a used forklift. Murray...

Murray Countertops borrowed $6500 at an annual rate of 4% to buy a used forklift. Murray amortized the loan in 4 annual payments. Prepare an amortization schedule, using the amortization table, for the loan and use it to answer the questions.

The amount of interest for the first payment period is....

(Round to the nearest cent as needed.)

The portion of the second payment that is applied to reduction of the principal is....

The principal remaining at the end of the third payment period is....

Solutions

Expert Solution

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Loan amortization schedule Joan Messineo borrowed $40,000 at a 4% annual rate of interest to be...

Loan amortization schedule Joan Messineo borrowed $40,000 at a 4% annual rate of interest to be repaid over 3 years. The loan is amortized into three equal, annual, end-of-year payments a. Calculate the annual, end-of-year loan payment. b. Prepare a loan amortization schedule showing the interest and principal breakdown of each of the three loan payments. c. Explain why the interest portion of each payment declines with the passage of time. a. The amount of the equal, annual, end-of-year loan...

You borrowed $45,000 at 4% annual interest rate that you must repay over 3 years. The...

You borrowed $45,000 at 4% annual interest rate that you must repay over 3 years. The loan is amortized into three-equal end-of-year payments. (a) Calculate annual payment amount (b) Prepare a loan amortization schedule (c) If you make equal monthly payment for 36 months, calculate monthly payment amount and prepare a monthly loan amortization schedule (d) How much is total interest charge for 3 years, if you make annual payment? How much is total interest charge...

If you borrow $350,000 for 30 years at 4% annual interest rate to buy a house,...

If you borrow $350,000 for 30 years at 4% annual interest rate to buy a house, how much would you have to pay “at the end of each year” to the bank to pay it off over the full period? If you had to pay “monthly” instead of “annually,” would the total cost be more, the same, or less?

For this problem, use an annual interest rate of 4%. On 1/1/2020, you buy a perpetuity...

For this problem, use an annual interest rate of 4%. On 1/1/2020, you buy a perpetuity paying you $10,000 at the beginning of each year, commencing on 1/1/2020. (Recall that a perpetuity is an annuity that does not end.) (a) Calculate the present value of the perpetuity as of 1/1/2020. (b) After receiving exactly ten payments, you exchange the perpetuity on 1/1/2030 for an annuity paying $x at the beginning of each year for 20 years, commencing on 1/1/2030. (Note: Since you have received exactly...

This morning, you borrowed $162,000 to buy a house. The mortgage rate is 4.35 percent. The...

This morning, you borrowed $162,000 to buy a house. The mortgage rate is 4.35 percent. The loan is to be repaid in equal monthly payments over 20 years with the first payment due one month from today. Assume each month is equal to 1/12 of a year and all taxes and insurance premiums are paid separately. How much of the five payment applies to the principal balance?

On June 1, you borrowed $230,000 to buy a house. The mortgage rate is 8 percent....

On June 1, you borrowed $230,000 to buy a house. The mortgage rate is 8 percent. The loan is to be repaid in equal monthly payments over 20 years. The first payment is due on July 1. Assume that each month is equal to 1/12 of a year. How much of the second payment (on August 1) applies to the principal balance? $ How much of the second payment (on August 1) is interest? $ How much of the third...

#1) On June 1, you borrowed $195,000 to buy a house. The mortgage rate is 5.20...

#1) On June 1, you borrowed $195,000 to buy a house. The mortgage rate is 5.20 percent. The loan is to be repaid in equal monthly payments over 15 years. How much of the first payment applies to the principal balance? $714.43 $722.50 $717.51 $756.70 $658.56 #13) You want to borrow $34,800 and can afford monthly payments of $960 for 48 months, but no more. Assume monthly compounding. What is the highest APR rate you can afford? 13.18 percent 14.52...

You borrowed from the bank $300,000 with an annual interest rate of 6% and a maturity...

You borrowed from the bank $300,000 with an annual interest rate of 6% and a maturity of 30 years. Determine the monthly mortgage payment.

Bob borrowed $10,000 at an effective annual rate of interest of 7%. Bob’s plan was to...

Bob borrowed $10,000 at an effective annual rate of interest of 7%. Bob’s plan was to repay the loan with equal principal repayments plus interest at the end of each year for 20 years. After the 10th payment, Bob decides to change his payment scheme and pay the outstanding balance with equal annual payments. The loan will still be repaid in 20 years. Calculate the difference between the 10th and 11th payment. Less than 174 At least 174, but less...

9 years ago you borrowed $147695 to buy a house. The interest rate quoted to you...

9 years ago you borrowed $147695 to buy a house. The interest rate quoted to you was 6.26 percent for 30 years with monthly payments. Assuming you have made regular monthly payments up to now, what is the amount (in $) you still owe on the loan today? Answer to two decimals. Hint: The hard way to do this is to use an amortization table. There is an easier way - see if you can find it. Can you explain...

Subjects

Question

Murray Countertops borrowed ​$6500 at an annual rate of 4​% to buy a used forklift. Murray...

Solutions

Expert Solution

Related Solutions

Murray Countertops borrowed $6500 at an annual rate of 4% to buy a used forklift. Murray...