Exam 14: Amortization of Loans, Including Residential Mortgages

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?

Payments of $1000.00 deferred for nine years are received at the end of each month from a fund of $20 000.00 deposited today at 6% compounded monthly. Calculate the size of the final payment.

The owner of the Pink Flamingo Motel borrowed $19 500.00 at 8.11% compounded semi-annually and agreed to repay the loan by making payments of $1110.00 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? c) How much of the payments made at the end of five years will be interest?

A debt of $12 970.00 with interest at 7.23% compounded semi-annually is repaid by payments of $1880.00 made at the end of every three months. Construct an amortization schedule showing the total paid and the total cost of the debt.

Vicki receives payments of $3000.00 at the beginning of each month from a pension fund of $150000.00. Interest earned by the fund is 6% compounded monthly. What is the number of payments Vicki will receive?

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 $40000.00 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 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.

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?

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 $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.

How much principal is repaid in the 74th payment interval on a $142300 mortgage? The mortgage is amortized over 25 years and the payments are monthly. The interest rate is 7.44% compounded monthly.

The Taylors agreed to monthly payments rounded up to the nearest $100.00 on a mortgage of $136 000.00 amortized over 15 years. Interest for the first five years was 8.5% compounded semi-annually. After 30 months, as permitted by the mortgage agreement, the Taylors increased the rounded monthly payment by 10%. a) Determine the mortgage balance at the end of the five-year term. b) If the interest rate remains unchanged over the remaining term, how many more of the increased payments will amortize the mortgage balance? c) How much did the Taylors save by exercising the increase-in-payment option?

Tom receives pension payments of $6000.00 at the end of every six months from a retirement fund of $90 000.00. The fund earns 8.00% compounded semi-annually. a) How many payments will Tom receive? b) What is the size of the final pension payment?

What is the size of the final unequal payment of a loan that has 69.47 payments and the equal payment size is $215.64? The interest rate is 3.1% per compounding period.

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?

How much total principal is repaid between the 1st and 7th payment interval of a 4.5-year loan for $4887 at an interest rate of 7.4% compounded monthly and the payments are also monthly. Round your answer to the nearest dollar.

A debt of $17 000.00 is repaid by quarterly payments of $1430.00. If interest is 6.12% compounded quarterly, what is the size of the final 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 $14750? The loan rate is 6.6% compounded quarterly.

The owner of the Guelph Inc. borrowed $20000.00 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?