MA373 S12 Homework Chapter 5 Solutions

MA373 S12 Homework Chapter 5 Solutions - 1 In calculator...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
1. In calculator: N=5 I/Y=6% PV= -100,000 CPT PMT=23,739.64 Time Payment Interest in Pmt Principal in Payment OLB 0 100,000.00 1 23,739.64 6,000.00 17,739.64 82,260.36 2 23,739.64 4,935.62 18,804.02 63,456.34 3 23,739.64 3,807.38 19,932.26 43,524.08 4 23,739.64 2,611.44 21,128.20 22,395.89 5 23,739.64 1,343.75 22,395.89 0.00 2a. Total Amount of Principal=Total Loan Amount = 15,000. b. Interest Paid = Total Amount Paid – Total Loan Amount = 10*2000 – 15,000 = 5,000. 3. Total Amount Paid = Total Amount of Interest Paid + Total Loan Amount Total Loan Amount = 950(4) – 800 = 3000. In Calculator: PV=-3000 N=4 I/Y PMT=950 CPT = 10.175%. 4. Amount of Interest in 16 th payment = (OLB 15 )(i (12) /12) = (8500)(.01) = 85. 5. (i (12) /12)=.0075 OLB 8 =800 Princ 9 =90 Payment 9=(Principal in Pmt 9) + (Interest in Pmt 9) = 90 + (800)(.0075) = 96. 6. We need to use the formula to calculate the principle in the kth year 1 nk Qv  We know: 12 12 1.08 1 12 i     so 12 .00643403 12 i Principle in the 120 th payment: 121 890 n Principle in the 40 th payment: 41 n Qv x Find x.     ( 121) 121 1.00643403 890 890 1.00643403 n n Q Q  Substitute the Q above for the Q in 41 n Qv x       41 80 121 890 1.00643403 890 1.00643403 532.80 1.00643403 n n 
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
7. We know Q = 1000 and I = .07
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 5

MA373 S12 Homework Chapter 5 Solutions - 1 In calculator...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online