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

What is the size of the final unequal payment of a loan for $2723.44 if it has quarterly payments of $500? The interest rate is 8.4% compounded quarterly.

A bank has an interest rate of 5% compounded semi annually for a five year closed mortgage. If the mortgage has monthly payments, calculate the effective rate of interest per each term.

The Korean community is planning to buy a place for their community in Markham valued at $1 697 000. They made a down payment of 10% and payments of $400 000 are required at the end of every 3 months. If interest is 9% compounded monthly, what is the size of the final payment?

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?

A contract worth $59 000.00 provides benefits of $21 000.00 at the end of each year. The benefits are deferred for six years and interest is 8.95% compounded quarterly. a)How many payments are to be made under the contract? b)What is the size of the last benefit 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.

Zam Zam Inc. borrowed $142 000.00 at 4.4% compounded semi-annually. The loan is repaid by payments of $9700.00 due at the end of every six months. How many payments are needed and what will be the outstanding balance after 8 payments?

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.

How much total interest is paid between the 6th and 13th payments on a loan that has monthly payments for 3 years and an original principal of $14 750? The loan rate is 6.6% compounded quarterly.

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

A investor's price for a townhouse was $160 000.00. Sepaba Investments., the buyers of the rental unit, paid $40 000.00 down and financed the balance by making equal payments at the end of every six months for 25 years. Interest is 6% compounded semi-annually. a)What is the size of the semi-annual payment? b)How much will Sepaba Investments. owe after 20 years? c)What is the total cost of the building for Sepaba Investments? d)What is the total interest included in the payments?

A debt of $10 000.00 with interest at 8% compounded quarterly is to be repaid by equal payments at the end of every three months for two years. a)Calculate the size of the monthly payments. b)Construct an amortization table. c)Calculate the outstanding balance after three payments.

A loan of $14 100.00 is amortized over 11 years by equal monthly payments at 5.4% compounded monthly. Construct an amortization schedule showing details of the first three payments, the fortieth payment, the last three payments, and totals.

Zara bought a 2013 Kia Forte by taking a $19 500 loan from BMO with interest at 5.99% compounded annually and amortized by payments of $378 at the end of every month. She receives an inheritance after making 36 payments and plans to pay the balance in full. What is the payout figure just after the last regular payment made?

How much interest is paid after the first payment interval on a $100 000 mortgage? The mortgage is amortized over 25 years and the payments are monthly. The interest rate is 6% compounded semi-annually. Round your answer to the nearest dollar.

Lisa saved $750 000.00. If she withdraws $12 000.00 at the beginning of every month and interest is 12% compounded monthly, what is the size of the last withdrawal?

Olfert Inc. is repaying a loan of $52 500.00 by making payments of $4700.00 at the end of every six months. If interest is 7.5% compounded semi-annually, construct an amortization schedule showing the total paid and the total cost of the loan.

What is the outstanding balance after the 23rd payment interval of a 16-year loan for $14 734 with semi-annual payments and an interest rate of 5.95% compounded quarterly?

The owner of the Guelph Inc. borrowed $20 000.00 at 1.2% compounded semi-annually and agreed to repay the loan by making payments of $1000.00 at the end of every three months. a)How many payments will be needed to repay the loan? b)How much will be owed at the end of five years?

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?