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Unformatted text preview: Name: ID: (Surname) (First Name) 1. Complete the following amortization schedule. Note that there is no payment at time 2 and that the interest at
time 3, I3, represents the interest earned between time 1 and 3. Please show your work. (answer to the nearest cent)
Time  Payment Interest Portion Principal Portion Outstanding Balance
0 / /
1 Q1 l l P1
3 Q3 ‘ I3 I 7745 ‘ OLB3
4 ‘ 8000 712.75 7287.25 ) OLB4
5 ) 05 . I5 ‘— 6967.75 I 0 OLBLP = P9 =2 6767.24:
02.13%: 492.8%”); f; :: wage + warms“ : 157525 \ a i “ ‘ W ,2" '5‘ — J
2 2 L OLE W) L “w “‘” v ~ »«. I Lﬁ ? /4/~ W 0 3?: LaLB,: szcaaaa?5)£ %%€5#7 516. :95 +195. «2.: 35050 +« may}; Qg/wf.
MB, :2: {2.43% +7; M%’S’l~‘%?¢€ 3 742,009
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Q7);’ia,'l‘l9) :: 11%” + “9139—? :— @4270 am an W 0 .
micr 5”" w ‘0 “My 2. Ellen has a thirtyyear mortgage with level monthly payments. The amount of principal in her 25th payment is
$222.20 and the amount of principal in her 37th payment is $233.31. Find the amount of interest in her 49th payment. (the answer to the nearest cent). f): I’IX 30 '3 36
:3 awed? 03 ~ 7.2210
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a 3% ’2—‘0 ﬂea Qumba tm/ﬁJHw 5 ﬂewaw gaaﬁs .x‘ : (sweaty m (waflé) :: 5246.908 3. A $1000 7% tenyear bond has semiannual coupons. It is purchased new at $880 and is redeemable at $1020.
Find the coupon amount and the annual yield rate compounding semiannually. (answers to 3 significant digits) Frail/0&7 '3; 796 “’32..
1/1
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nczﬁ/ﬂm’lﬁ www FEW 4. A loan of $10,000 is being repaid by quarterly payments of $X at the end of each quarter at loan rate of 8%
compounded quarterly. If the outstanding loan balance at the end of the first year is $7,192.43, find the
quarterly payment SX. (answer to the nearest cent) 7}: €23 2”: 7/6”; [10% tr—
(may: ?/‘72,43
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@1959 “” 5261127 1.27 m‘?‘/c7”2,% 5m) « 0 5. A 15 year loan is amortized with monthly payments of $400 each, starting one month after the loan is made. If the interest paid in the 7th payment is $300, find the annual rate of interest compounded monthly on the loan.
(answer to 3 significant digits) 2 Imxisalgv
‘T ~ 300 a) f; :: ital? militia? '2: i’W ava life
Fax: (QV’ QV v?) 6. Terry borrows $10,000 at an annual effective rate of interest of8%. At the end of each year Terry pays the
interest on the loan. He also sets up a sinking fund to repay the principal at the end of 6 years. Terry’s sinking
fund earns 4% interest compounded monthly. At the end of the second year Terry has accumulated $2000. If he wishes to reach his goal of $10,000 by the end of 6 years, what level monthly deposit must he make at the end
of each monthly for the remaining 4 years? (answer to the nearest cent) J: :1 (337% P2,: moo/tit“. ail” wwwﬁfia+ DgWB :1 @5905? i7 f; 9,... ’ZOL’WiQ/“Hj I Name: ID:
(Surname) (First Name) 1. Complete the following amortization schedule. Note that there is no payment at time 2 and that the interest at
time 3, I3, represents the interest earned between time 1 and 3. Please show your work. (answer to the nearest cent)
Time Payment Interest Portion F_ Principal Portion Outstanding Balance
0 / J / / —( OLBO
l 7 01 1250 P1 ‘ 0le
3 03 I3 7 30000 OLB3
4 8000 250 7750 ( OLB4
5 Q5 l is "i 2250 l 0 0L3“; ff; 29,1550
ates 02.13% «i if; : 22053 + “29527 =2: farm u a ’L .9 ‘
4 2 2 630%? "7 .\ at“: 5 , ,‘w p ‘3 ’ I ‘. ,j‘ a‘ U *3 if: i»! Avgr" E? ’ * é . 2 ,n .2: (NW) W {J‘émﬁi ‘
(9% 2; 134»??? mm «2» aaﬁfﬂa arm/awe”
:30 m. Wm. M C“ ‘5”,9 ﬁt A “"2 f; i .3. g. m :2 »~ “I m, ff} 5 Fiﬁ? H; w gyaw‘: if ,I (ﬂy é: ,;
gag)? :3: A! “f ( ; ~ I w a 5 r” 2. Ellen has a thirtyyear mortgage with level monthly payments. The amount of principal in her 25th payment is
$22250 and the amount of principal in her 37th payment is 523?.119 Find the amount of interest in her 49th payment. (answer to the nearest cent).
ﬂ“: rm “$0 3M? a ._.x%é’5“”’“§ «32.2,th 3. A $1000 9% tenyear bond has semiannual coupons. it is purchased new at $880 and is redeemable at $1020. 4. A loan of $10,000 is being repaid by quarterly payments of SX at the end of each quarter at loan rate of 4%
compounded quarterly. If the outstanding loan balance at the end of the first year is $7,796.91, find the
quarterly payment $X. (answer to the nearest cent)  3 In?! h: (I: I I ,V’Kﬂ‘
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«6'0 [U Q & 5. A 15 year loan is amortized with monthly payments of $400 each, starting one month after the loan is made. lf
the interest paid in the 5th payment is $300, find the annual raterle interest compounded monthly on the loan.
(answer to 3 significant digits) h > )1; left: ﬁg}; 2 “a g m ,g P; ‘: lfﬂﬂ? a 36352 My? V a ##1le ‘45” , Mlle
/9 v» {3a if i: 50/ , Jr”
in thyﬁr f wriff, 6””
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l if? ‘32 7w 6. Terry borrows $10,000 at an annual effective rate of interest of8%. At the end of each year Terry pays the
interest on the loan. He also sets up a sinking fund to repay the principal at the end of 6 years. Terry’s sinking
fund earns 4% interest compounded monthly. At the end of the second year Terry has accumulated $1000. If he
wishes to reach his goal of $10,000 by the end of 6 years, what level monthly deposit must he make at the end
of each monthly for the remaining 4 years? (answer to the nearest cent) ‘ 3 km 5’3 72]”) jaw? w‘hﬁyﬁéx , @210? 7’ an: a," SEW a. Viv«E ’ '3’: hr gm}; k I!
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 Spring '09
 Chisholm
 Annual Percentage Rate, nearest cent

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