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Unformatted text preview: 1. A 8 year loan is amortized with monthly payments of $400 each, starting one month after the loan is made. If the principal repaid in the third payment is $272.29, find the annual rate of interest compounded monthly on the loan.
4.92% 2. A loan of $4,500 is being repaid with quarterly payments at the end of each period for 10 years at 6% convertible quarterly. Find the outstanding loan balance at the end of the 4 year. Calculate to the two decimal places.
3013.01 3 . A loan is being repaid by quarterly instalments of $2,500 at the end of each quarter at 8% convertible quarterly. If the loan balance at the end of the first year is $12,000, find the original loan balance. Answer to the nearest dollar.
20605 4. A $30,000 loan is paid off with monthly payments over 14 years, at an interest rate of i(12) = 6.12%. The monthly payments are rounded up to the nearest dollar. Find the last smaller payment to the nearest cent.
558.17 5. A loan of $10,000 is being repaid by monthly payments of $70. In addition to the monthly payments an extra payment of $225 is made at the end of each year. Given that the interest rate on the loan is 6% compounded monthly, calculate the outstanding loan balance at the end of the second year.
9027.483 6. A loan of $10,000 is charged an interest rate of 12% compounded quarterly. The first 8 quarterly payments are $300 each. These are followed by 8 more quarterly payments of $450. Calculate the outstanding loan balance immediately after the 16th payment.
8,666.15 7. A loan is being repaid by monthly payments of $140. Calculate how much principal is repaid during the last year of the loan assuming an interest rate of 12% compounded monthly? ...
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This note was uploaded on 03/30/2012 for the course ACTSC 231 taught by Professor Chisholm during the Spring '09 term at Waterloo.
- Spring '09