Exam 14: Amortization of Loans, Residential Mortgages, and Sinking Funds

Angelina has agreed to purchase her partner's share in the business by making payments of $1720.00 every three months. The agreed transfer value is $19 500.00 and interest is 9.11% compounded annually. If the first payment is due at the date of the agreement, what is the size of the final payment?

John has agreed to purchase his partner's share in real estate by making payments of $5000.00 every three months. The agreed transfer value is $40 000.00 and interest is 10% compounded annually. If the first payment is due at the date of the agreement, what is the size of the final payment?

A $151 000.00 mortgage is to be repaid over a 17-year period by monthly payments rounded up to the next higher $50.00. Interest is 8.2% compounded semi-annually. a)Determine the number of rounded payments required to repay the mortgage. b)Determine the size of the last payment. c)Calculate the amount of interest saved by rounding the payments up to the next higher $50.00.

Catrina receives payments of $1120.00 at the beginning of each month from a pension fund of $79 500.00. Interest earned by the fund is 11.36% compounded monthly. a)What is the number of payments Catrina will receive? b)What is the size of the final payment?

A factory valued at $100 000.00 is purchased for a down payment of 28% and payments of $4000.00 at the end of every three months. If interest is 9% compounded monthly, calculate the size of the final payment.

A $30 000.00 mortgage is amortized by monthly payments over twenty years and is renewable after five years. a)If the interest rate is 8.5% compounded semi-annually, calculate the outstanding balance at the end of the five-year term. b)If the mortgage is renewed for a further three-year term at 8% compounded semi-annually, calculate the size of the new monthly payment. c)Calculate the payout figure at the end of the three-year term.

How much principal is repaid in the 74th payment interval on a $142 300 mortgage? The mortgage is amortized over 25 years and the payments are monthly. The interest rate is 7.44% compounded monthly.

What is the outstanding balance after 23 payments on a 20-year mortgage that has monthly payments of $1062.32 and an interest rate of 6.6% compounded monthly?

A debt of $40 000.00 is repaid in monthly installments of $500.00. If interest is 8.0% compounded quarterly, what is the size of the final payment?

A $176 000.00 mortgage is to be repaid over a 21-year period by monthly payments rounded up to the next higher $100.00. Interest is 9.44% compounded semi-annually. a)Determine the number of rounded payments required to repay the mortgage. b)Determine the size of the last payment.

Andre has saved $152 000.00. If he withdraws $1750.00 at the beginning of every month and interest is 7.5% compounded monthly, what is the size of the last withdrawal?

Keith receives payments of $14 500.00 at the beginning of each month from a pension fund of $1 500 000.00. Interest earned by the fund is 7.6% compounded monthly. What is the number of payments Keith will receive?

What is the monthly payment size of a 21-year mortgage for $169 600 and an interest rate of 7.2% compounded semi-annually?

The Acme Parts Company is repaying a debt of $15 000.00 by payments of $1410.00 made at the end of every three months. Interest is 7.2% compounded monthly. a)How many payments are needed to repay the debt? b)What is the size of the final payment?

A debt of $41 000.00 is repaid in monthly installments of $660.00. If interest is 8.4% compounded quarterly, what is the size of the final payment?

A loan of $8380.00 is repaid by equal payments made at the end of every three months for 3 years. If interest is 7% compounded quarterly, find the size of the quarterly payments and construct an amortization schedule showing the total paid and the total cost of the loan.

Barbara borrowed $12 000.00 from the bank at 9% compounded monthly. The loan is amortized with end-of-month payments over five years. a)Calculate the interest included in the 20th payment. b)Calculate the principal repaid in the 36th payment. c)Construct a partial amortization schedule showing the details of the first two payments, the 20th payment, the 36th payment, and the last two payments. d)Calculate the totals of amount paid, interest paid, and the principal repaid.

How much interest is paid in total on a 1-year loan for $5000? The interest rate is 12 % compounded monthly and the payments are monthly.

A debt of $12 500.00 with interest at 5.5% compounded semi-annually is amortized by making payments of $1000.00 at the end of every six months. Calculate the outstanding balance after five years.

A demand (variable rate)mortgage of $137 000.00 is amortized over 20 years by equal monthly payments. After 21 months the original interest rate of 6% p.a was raised to 6.6% p.a. Three years after the mortgage was taken out, it was renewed at the request for the mortgagor for a five-year term at a fixed rate of 7.25% p.a. a)Calculate the mortgage balance after 21 months. b)Compute the size of the new monthly payment at the 6.6% rate of interest. c)Determine the mortgage balance at the end of the five-year term.