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

Vicki receives payments of $3000.00 at the beginning of each month from a pension fund of $150 000.00. Interest earned by the fund is 6% compounded monthly. What is the number of payments Vicki will receive?

Rebecca borrowed $20 400 from her local credit union to pay for the upgrades in her kitchen. She wants to pay the loan with monthly payments over a period of 3 years. What is the interest included in the tenth payment, if the rate charged by the credit union is 6% monthly?

Big Printing Inc. is repaying a loan of $37 300.00 by making payments of $2300.00 at the end of every three months. If interest is 3.5% compounded monthly, construct an amortization schedule showing the total paid and the total cost of the loan. What is the total interest paid and cost of the loan?

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.

A $180 000.00 mortgage is to be amortized by making monthly payments for 22.5 years. Interest is 7.2% compounded semi-annually for a four-year term. a) Compute the size of the monthly payment. b) Determine the balance at the end of the four-year term. c) If the mortgage is renewed for a five-year term at 8.66% compounded semi-annually, what is the size of the monthly payment for the renewal term?

Samuel paid $850 000.00 for a new house. He paid $140 000.00 down and financed the balance by making equal payments at the end of every month for 25 years. Interest is 5.1% compounded monthly. What is the total cost of the building for Samuel?

A $248 000.00 mortgage amortized by monthly payments over 35 years is renewable after five years. Interest is 8.12% compounded semi-annually. a) What is the size of the monthly payments? b) How much interest is paid during the first year? c) How much of the principal is repaid during the first five-year term? d) If the mortgage is renewed for a further five-year term at 7.16% compounded semi-annually, what will be the size of the monthly payments?

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.

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?

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?

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.

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?

How much interest is paid in the 53rd monthly payment interval of a loan for $43 200? The loan is amortized at a rate of 9.17% compounded annually over 7 years.

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.

Far East Imports Inc. owes $64 000.00 to be repaid by monthly payments of $2475.00. Interest is 6.12% compounded monthly. a) How many payments will Far East Imports Inc. have to make? b) How much interest is included in the 15th payment? c) How much of the principal will be repaid by the 17th payment? d) Construct a partial amortization schedule showing details of the first three payments, the last three payments, and totals.

What is the monthly payment size of a 25-year mortgage for $100 000 and an interest rate of 6% compounded semi-annually?

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.

Peter worked for GM for 31 years. On his retirement, he opted for a pension buy-out and received $1 467 921. He invested his money in an annuity that provided for payments of $9000 at the end of every month. If interest is 4.4% compounded monthly, determine the size of the final payment.

Honda is selling a 2014 Accord Coupe Ex M for $30 056.90 including freight, PDI and all applicable fees. The lease payment of $382 is due at the beginning of each month. If the interest rate compounded annually is 3.99% and the residual value is $13 200, determine the size of the final lease payment.

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?