question2 - a. KEYSTROKES [2nd] [P/Y] [1] [2] [ENTER] []...

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a. KEYSTROKES DISPLAY [2nd] [P/Y] Current value of P/Y [1] [2] [ENTER] P/Y = 12.00 (sets payments per year at 12) [ ] C/Y = 12.00 [2] [ENTER] C/Y = 2.00 (sets compounding per year at 2) [CE/C] [2 nd ] [CLR TVM] 0.00 [3] [0] [2 nd ] [xP/Y] 360.00 [N] N = 360 [7] [.] [2] [5] [I/Y] I/Y = 7.25 [1] [1] [2] [5] [0] [0] [PV] PV = 112500 [CPT] [PMT] PMT = -759.29 The new monthly payment amount is $769.29 b. Month Payme nt Interest Total  (Paymen t- Interest) 112500 1  $  759.29   $  679.69   $  79.60   $  112,420.4 2  $  759.29   $  679.21   $  80.08   $  112,340.3 c. The principal payment should be larger in the second month because we are paying interest on a smaller amount because we have already deducted from the principal. d. Month Payme nt Interest Total  (Paymen t- Interest) 112500 1  $  759.29   $  679.69   $  79.60   $  112,420.4 2  $  759.29   $  679.21   $  80.08   $  112,340.3
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3  $  759.29   $  678.72   $  80.57   $  112,259.7 4  $  759.29   $  678.24   $  81.05   $  112,178.6 5  $  759.29   $  677.75   $  81.54   $  112,097.1 6  $  759.29   $  677.25   $  82.04   $  112,015.1 7  $  759.29   $  676.76 
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This note was uploaded on 09/13/2011 for the course ADM 2350 taught by Professor Ronda during the Fall '11 term at University of Ottawa.

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question2 - a. KEYSTROKES [2nd] [P/Y] [1] [2] [ENTER] []...

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