MA373 F15 Homework Chapter 5

# MA373 F15 Homework Chapter 5 - Math 373 Fall 2015 Homework...

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October 6, 2015 Copyright Jeff Beckley 2013, 2014, 2015 Math 373 Fall 2015 Homework Chapter 5 Chapter 5 Section 2 1. Zhu borrows 100,000 to be repaid with five annual payments. The annual effective interest rate on the loan is 6%. Complete an amortization table for this loan. 2. Yi has a loan of 15,000 which is being repaid with ten level annual payments of 2000. a. Calculate the amount that Yi will pay in principal over the life of the loan. b. Calculate the amount of interest that Yi will pay. 3. Jake has repaid a loan with 4 annual payments of 950 each. The total interest repaid in those four payments was 800. Calculate the annual effective interest rate on the loan. 4. Mark borrowed money to buy a new car. Payments are made monthly. The loan has a nominal rate of interest of 12% compounded monthly. Immediately after the 15 th payment, Mark has an outstanding loan balance of 8500. Calculate the amount of interest in his 16 th payment. 5. Nik took a loan to buy a new couch for his apartment. He is making monthly payments and the loan has a nominal interest rate of 9% compounded monthly. Immediately after the 8 th payment, Nik still owes 800 on his loan. The principal in his 9 th payment is 90.

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