Question 1

Far East Imports Inc.owes $64 000.00 to be repaid by monthly payments of $2475.00.Interest is 6.12% compounded monthly. a)How many payments will Far East Imports Inc.have to make? b)How much interest is included in the 15^th payment? c)How much of the principal will be repaid by the 17^th payment? d)Construct a partial amortization schedule showing details of the first three payments,the last three payments,and totals.

Accepted Answer

The answer of Far East Imports Inc.owes $64 000.00 to...

Question 2

Payments of $1000.00 deferred for nine years are received at the end of each month from a fund of $20 000.00 deposited today at 6% compounded monthly.Calculate the size of the final payment.

Accepted Answer

The answer of Payments of $1000.00 deferred for nine years...

Question 3

Angelina has agreed to purchase her partner's share in the business by making payments of $1720.00 every three months.The agreed transfer value is $19 500.00 and interest is 9.11% compounded annually.If the first payment is due at the date of the agreement,what is the size of the final payment?

Accepted Answer

The answer of Angelina has agreed to purchase her partner's...

Question 4

Lisa saved $750 000.00.If she withdraws $12 000.00 at the beginning of every month and interest is 12% compounded monthly,what is the size of the last withdrawal?

Accepted Answer

The answer of Lisa saved $750 000.00.If she withdraws $12...

Question 5

A $180 000.00 mortgage is to be amortized by making monthly payments for 22.5 years.Interest is 7.2% compounded semi-annually for a four-year term.
a)Compute the size of the monthly payment.
b)Determine the balance at the end of the four-year term.
c)If the mortgage is renewed for a five-year term at 8.66% compounded semi-annually,what is the size of the monthly payment for the renewal term?

Accepted Answer

The answer of A $180 000.00 mortgage is to be...

Question 6

A mortgage balance of $137 960.70 is to be repaid over a eleven-year term by equal monthly payments at 8.1% compounded semi-annually.At the request of the mortgagor,the monthly payments were set at $1140.00.
a)How many payments will the mortgagor have to make?
b)What is the size of last payment?
c)Determine the difference between the total actual amount paid and the total amount required to amortize the mortgage by the contractual monthly payments.

Accepted Answer

The answer of A mortgage balance of $137 960.70 is...

Question 7

A debt of $42 500.00 is repaid by payments of $4850.00 made at the end of each year.Interest is 7% compounded semi-annually. a)How many payments are needed to repay the debt? b)What is the cost of the debt for the first three years? c)What is the principal repaid in the 3^rd year? d)Construct an amortization schedule showing details of the first three payments,the last three payments,and totals.

Accepted Answer

The answer of A debt of $42 500.00 is repaid...

Question 8

A debt of $41 000.00 is repaid in monthly installments of $660.00.If interest is 8.4% compounded quarterly,what is the size of the final payment?

Accepted Answer

The answer of A debt of $41 000.00 is repaid...

Question 9

Karen receives pension payments of $4570.00 at the end of every six months from a retirement fund of $82 000.00.The fund earns 8.06% compounded semi-annually.
a)How many payments will Karen receive?
b)What is the size of the final pension payment?

Accepted Answer

The answer of Karen receives pension payments of $4570.00 at...

Question 10

Andre has saved $152 000.00.If he withdraws $1750.00 at the beginning of every month and interest is 7.5% compounded monthly,what is the size of the last withdrawal?

Accepted Answer

The answer of Andre has saved $152 000.00.If he withdraws...

Question 11

A factory valued at $100 000.00 is purchased for a down payment of 28% and payments of $4000.00 at the end of every three months.If interest is 9% compounded monthly,calculate the size of the final payment.

Accepted Answer

The answer of A factory valued at $100 000.00 is...

Question 12

A contract valued at $47 500.00 requires payments of $6951.00 every six months.The first payment is due in four years and interest is 6.6% 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?

Accepted Answer

The answer of A contract valued at $47 500.00 requires...

Question 13

A $248 000.00 mortgage amortized by monthly payments over 35 years is renewable after five years.Interest is 8.12% compounded semi-annually.
a)What is the size of the monthly payments?
b)How much interest is paid during the first year?
c)How much of the principal is repaid during the first five-year term?
d)If the mortgage is renewed for a further five-year term at 7.16% compounded semi-annually,what will be the size of the monthly payments?

Accepted Answer

The answer of A $248 000.00 mortgage amortized by monthly...

Question 14

The owner of the Guelph Inc.borrowed $20 000.00 at 1.2% compounded semi-annually and agreed to repay the loan by making payments of $1000.00 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?

Accepted Answer

The answer of The owner of the Guelph Inc.borrowed $20...

Question 15

Catrina receives payments of $1120.00 at the beginning of each month from a pension fund of $79 500.00.Interest earned by the fund is 11.36% compounded monthly.
a)What is the number of payments Catrina will receive?
b)What is the size of the final payment?

Accepted Answer

The answer of Catrina receives payments of $1120.00 at the...

Question 16

A debt of $40 000.00 is repaid in monthly installments of $500.00.If interest is 8.0% compounded quarterly,what is the size of the final payment?

Accepted Answer

The answer of A debt of $40 000.00 is repaid...

Question 17

John has agreed to purchase his partner's share in real estate by making payments of $5000.00 every three months.The agreed transfer value is $40 000.00 and interest is 10% compounded annually.If the first payment is due at the date of the agreement,what is the size of the final payment?

Accepted Answer

The answer of John has agreed to purchase his partner's...

Question 18

A contract worth $59 000.00 provides benefits of $21 000.00 at the end of each year.The benefits are deferred for six years and interest is 8.95% compounded quarterly.
a)How many payments are to be made under the contract?
b)What is the size of the last benefit payment?

Accepted Answer

The answer of A contract worth $59 000.00 provides benefits...

Question 19

A debt of $43 100.00 is repaid by payments of $3350.00 made at the end of every six months.Interest is 8.4% compounded quarterly. a)What is the number of payments needed to retire the debt? b)What is the cost of the debt for the first five years? c)What is the interest paid in the 11^th payment? d)Construct a partial amortization schedule showing details of the first three payments,the last three payments,and totals.

Accepted Answer

The answer of A debt of $43 100.00 is repaid...

Question 20

Tom receives pension payments of $6000.00 at the end of every six months from a retirement fund of $90 000.00.The fund earns 8.00% compounded semi-annually.
a)How many payments will Tom receive?
b)What is the size of the final pension payment?

Accepted Answer

The answer of Tom receives pension payments of $6000.00 at...

Quiz 14: Amortization of Loans,including Residential Mortgages

Payments of $1000.00 deferred for nine years are received at the end of each month from a fund of $20 000.00 deposited today at 6% compounded monthly.Calculate the size of the final payment.

Angelina has agreed to purchase her partner's share in the business by making payments of $1720.00 every three months.The agreed transfer value is $19 500.00 and interest is 9.11% compounded annually.If the first payment is due at the date of the agreement,what is the size of the final payment?

Lisa saved $750 000.00.If she withdraws $12 000.00 at the beginning of every month and interest is 12% compounded monthly,what is the size of the last withdrawal?

A debt of $41 000.00 is repaid in monthly installments of $660.00.If interest is 8.4% compounded quarterly,what is the size of the final payment?

Karen receives pension payments of $4570.00 at the end of every six months from a retirement fund of $82 000.00.The fund earns 8.06% compounded semi-annually. a)How many payments will Karen receive? b)What is the size of the final pension payment?

Andre has saved $152 000.00.If he withdraws $1750.00 at the beginning of every month and interest is 7.5% compounded monthly,what is the size of the last withdrawal?

A factory valued at $100 000.00 is purchased for a down payment of 28% and payments of $4000.00 at the end of every three months.If interest is 9% compounded monthly,calculate the size of the final payment.

The owner of the Guelph Inc.borrowed $20 000.00 at 1.2% compounded semi-annually and agreed to repay the loan by making payments of $1000.00 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?

Catrina receives payments of $1120.00 at the beginning of each month from a pension fund of $79 500.00.Interest earned by the fund is 11.36% compounded monthly. a)What is the number of payments Catrina will receive? b)What is the size of the final payment?

A debt of $40 000.00 is repaid in monthly installments of $500.00.If interest is 8.0% compounded quarterly,what is the size of the final payment?

John has agreed to purchase his partner's share in real estate by making payments of $5000.00 every three months.The agreed transfer value is $40 000.00 and interest is 10% compounded annually.If the first payment is due at the date of the agreement,what is the size of the final payment?

A contract worth $59 000.00 provides benefits of $21 000.00 at the end of each year.The benefits are deferred for six years and interest is 8.95% compounded quarterly. a)How many payments are to be made under the contract? b)What is the size of the last benefit payment?

Tom receives pension payments of $6000.00 at the end of every six months from a retirement fund of $90 000.00.The fund earns 8.00% compounded semi-annually. a)How many payments will Tom receive? b)What is the size of the final pension payment?