February 24, 2012
Math 373
Spring 2012
Homework
–
Chapter 5
Chapter 5 Section 2
1.
(S12HW) Kwaku 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.
(S12HW) Syaza has a loan of 15,000 which is being repaid with ten level annual payments of
2000.
a.
Calculate the amount that Syaza will pay in principal over the life of the loan.
b.
Calculate the amount of interest that Syaza will pay.
3.
(S08T2) Josh 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.
(S12HW) Cale borrowed money to buy a new car.
Payments are made monthly.
The loan has an
nominal rate of interest of 12% compounded monthly.
Immediately after the 15
th
payment, Cale
has an outstanding loan balance of 8500.
Calculate the amount of interest in the his 16
th
payment.
5.
(S12HW) Daniel 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, Daniel still owes 800 on his loan.
The principal in his 9
th
payment is 90.
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 Fall '08
 Staff
 Math, Interest, Nominal Interest Rate, Mortgage loan

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