How many regular payments of $543.03 will amortize

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Reference no: EM133318835

Question 1. A debt of $9000 is to be amortized with 10 equal semiannual payments. If the interest rate is 11%, compounded semiannually, what is the size of each payment? (Round your answer to the nearest cent.)

Question 2. A recent graduate's student loans total $15,000. If these loans are at 5%, compounded quarterly, for 14 years, what are the quarterly payments? (Round your answer to the nearest cent.)

Question 3. A homeowner planning a kitchen remodeling can afford a $500 monthly payment. How much can the homeowner borrow for 4 years at 6%, compounded monthly, and still stay within the budget? (Round your answer to the nearest cent.)

Question 4. A man buys a car for $36,000. If the interest rate on the loan is 12%, compounded monthly, and if he wants to make monthly payments of $800 for 48 months, how much must he put down? (Round your answer to the nearest cent.)

Question 5. A couple purchasing a home budget $1100 per month for their loan payment. If they have $17,000 available for a down payment and are considering a 25-year loan, how much can they spend on the home at each of the following rates? (Round your answers to the nearest cent.)

(a) 6.7% compounded monthly

(b) 7.1% compounded monthly

Question 6. A young couple buying their first home borrow $80,000 for 30 years at 7.2%, compounded monthly, and make payments of $543.03. After 5 years, they are able to make a one-time payment of $2000 along with their 60th payment.

(a) Find the unpaid balance immediately after they pay the extra $2000 and their 60th payment. (Round your answer to the nearest cent.)

(b) How many regular payments of $543.03 will amortize the unpaid balance from part (a)? (Round your answer to the nearest whole number.)

(c) How much will the couple save over the life of the loan by paying the extra $2000? (Use your answer from part (b). Round your answer to the nearest cent.)

Question 7. Some banks now have biweekly mortgages (that is, with payments every other week). Compare a 20-year, $50,000 loan at 7.2% by finding the payment size and the total interest paid over the life of the loan under each of the following conditions. (Round your answers to the nearest cent.)

(a) Payments are monthly, and the rate is 7.2%, compounded monthly.

payment size

total interest

(b) Payments are biweekly, and the rate is 7.2%, compounded biweekly. (Assume a standard 52-week year.)

Reference no: EM133318835

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