Exam 5: Repayment of Debts

A $6000 loan is to be repaid with monthly payments of $142.74 over 5-years at j₁₂ = 15%.What is the principal portion of the 30^th monthly payment using the sum of digits method?

A loan is being repaid over 8 years with 32 quarterly payments of $362.19 at j₄ = 8%.Under the amortization method,what is the outstanding balance of the loan immediately after the 15^th payment?

A loan of $36,000 is to be repaid by quarterly payments over 10 years at j₄ = 8%.The first payment is $1000,the 2^nd payment is $1020,the 3^rd payment is $1040 and so on.The principal repaid in the first payment is $280.What is the outstanding balance of the loan after the 2^nd payment?

On a debt of $10,000,interest is paid semi-annually at j₂ = 10% and semi-annual deposits are made into a sinking fund to retire the debt at the end of 5 years.The sinking fund earns interest at j₁₂ = 6%.What is the semi-annual expense of the debt?

A loan is to be repaid with n equal monthly payments.If the sum-of-digits method is applied,the sum of the amount of interest paid in the first (I₁)and last month (I_n)is equal to the half of the total amount interest paid.What is the value of n?

A loan is being amortized over n-years with monthly payments of $295.32.The rate of interest on the loan is j₁₂ = 12%.The principal repaid in the 25^th payment is $206.41.The outstanding balance after 25 payments (months)is $8684.79.What is the outstanding balance immediately after the 26^th payment?

A loan is being repaid over 8 years with 32 quarterly payments of $362.19 at j₄ = 8%.Under the amortization method,how much of the 3^rd payment goes towards interest on the loan?

A couple purchases a $400,000 home by paying $150,000 cash and financing the rest with a mortgage.They make weekly mortgage payments of $400,first payment made one week after the mortgage loan is taken out.The mortgage rate is j₂ = 7%,locked in for 5-years.What is the couple's equity when the mortgage renews? (Answer to the nearest dollar)

A loan of $3000 is to be repaid by annual payments of $400 for 5 years followed by annual payments of $450 for as long as necessary (first payment one year from now).If the interest rate on the loan is j₁ = 7%,what is the outstanding balance immediately after the 8^th payment?

The final payment of a loan with semi-annual payments consists of $5 in interest and $250 in repayment of principal.What is the nominal rate of interest compounded semi-annually,j₂ that is being charged on this loan?

A company borrows $100,000 with interest at j₁₂ = 9%.The loan is to be amortized by monthly payments of $1550 for as long as necessary.A final smaller payment will be calculated so the loan will be exactly repaid.What is the amount of interest paid in the 2^nd monthly payment of $1550?

A small corporation is looking to borrow $750,000 is choosing between the following alternatives: Alternative A: pay the loan off over ten years with level annual payments of $97,100 Alternative B: pay off the loan at the end of 10-years using the sinking fund method where the sinking fund rate is j = 4% and annual interest payments are made assuming j = y. Which of the following statements is/are true? (I)If y = 0.03 for Alternative B then the corporation would chose Alternative A (II)If y = 0.05 for Alternative B then the corporation would choose Alternative B

A $60,000 loan is paid back over 10 years with monthly payments of $790.18 at j₁₂ = 9.918%.What is the outstanding balance of the loan after 4 years using the sum of digits method? (Answer to the nearest dollar)You are given: Total interest = $34,821.12.

A loan is amortized at j₂ = 12% with semi-annual payments of $R.The outstanding balance of the loan after 13 payments is $7049.29 and the outstanding balance after 14 payments is $6377.10.What is R?

A corporation takes out a loan for $88,000 with interest due every six months for 7-years at j₂.The principal will be paid in one lump sum at the end of 7-years.The corporation makes semi-annual deposits of $5,150.32 into a sinking fund.The semi-annual cost of the loan is $9,110.32.What would be the semi-annual payment if the corporation was to instead pay off the loan using the amortization method,given the interest rate on the loan remained the same at j₂?

The principal portion of the 20^th payment of $R on an amortized loan is $340.95 and the principal portion of the 21^st payment of $R is $348.11.If there are 55 payments in total,what is R?

A loan at j₄ = 8.6% is being repaid over n-quarters,with quarterly payments of $647.18.The portion of the 9^th payment that goes towards principal is $349.23.What is the value of n?

A loan of $10,000 is repaid over 10 years with annual payments of $1358.68 at j₁ = 6%.How much of the 6^th payment goes towards interest using the sum of digits method?

What is the outstanding balance of the loan after 6 years (12 payments)?

Anderson takes out a loan of $22,000 at j₁₂ = 9% to be repaid over 5 years with monthly payments.After 24 payments,the outstanding balance on the loan is $14,361.35,but Anderson misses the next 10 monthly payments.At the end of the 34^th month,he makes a lump sum payment of $3000 and refinances the loan such that he still pays off the loan at the end of 5 years.If the interest rate is unchanged,what is the new monthly payment (first payment made at time 35)?