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MA373 S12 Homework Chapter 5 Solutions

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

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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 n k Qv   We know: 12 12 1.08 1 12 i so 12 .00643403 12 i Principle in the 120 th payment: 121 890 n Qv 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

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7. We know Q = 1000 and I = .07
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MA373 S12 Homework Chapter 5 Solutions - 1 In calculator...

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