Question

A $32,000 loan at 12% compounded quarterly is to be repaid by equal quarterly payments over a seven-year term.
a.	What will be the principal component of the sixth payment? (Round your answer to 2 decimal places.)
b.	What will be the interest portion of the twenty-second payment? (Round your answer to 2 decimal places.)
c.	How much will the loan’s balance be reduced by Payments 10 to 15 inclusive? (Round your answer to 2 decimal places.)
d.	How much interest will be paid in the second year? (Round your answer to 2 decimal places.)

Answer 1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

SOLVED WITH BA II PLUS CALCULATOR

SET CALCULATOR : C/Y= 4 AND P/Y = 4

C w ENG 06:54 01-08-2020 70 35 Х E1967 . A B с D E F I G J K set C/Y = P/Y = 4 BA II PLUS CALCULATOR 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 28 [7 X 4] 12.00 N = I/Y = PV = FV= -32000 0 PMT= 1705.38 LOAN BALANCE AFTER 5 PAYMENTS N = 23 [28-5] I/Y = 12.00 PMT = -1705.38 FV= 0 PV = 28042.66 1986 1987 1988 1989 1990 SIXTH PAYMENT = LESS : INTEREST = 1705.38 841.28 [28042.66 X 12% X (1/4)] 864.10 а PRINCIPAL PAYMENT = nad BOND Sheet3 REAL RETURN TABLE APPENDIX CUMIPMT PV FVstate Sheet4 PV FV PRICE YTM choice CON REFIN DIFF

C W ENG 06:54 01-08-2020 70 35 Х G2010 . A B с D E F. G Н J K LOAN BALANCE AFTER 21 PAYMENTS N = 7 [28-21] 1/Y = 12.00 PMT = -1705.38 FV= 0 PV = 10625.02 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 b INTEREST IN 22ND PAYMENT = 318.75 (10625.02 X 12% X (1/4)] LOAN BALANCE AFTER 9 PAYMENTS N = 19 [28-9] I/Y = 12.00 PMT = -1705.38 FV= 0 PV = 24427.57 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 LOAN BALANCE AFTER 15 PAYMENTS N = 13 [28-15] 1/Y = 12.00 PMT = -1705.38 FV= 0 PV = 18136.68 с LOAN BALANCE REDUCED BY = 6290.89 [24427.57-18136.68] BOND Sheet3 REAL RETURN TABLE APPENDIX CUMIPMT PV FVstate Sheet4 PV FV PRICE YTM choice CON REFIN DIFF

C W ENG 06:54 01-08-2020 70 35 Х G2016 . A B с D E F. G I J K 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 LOAN BALANCE AFTER 4 PAYMENTS N = 24 [28-4] 1/4 = 12.00 PMT = -1705.38 FV= 0 PV = 28881.59 LOAN BALANCE AFTER 8 PAYMENTS N = 20 [28-8] I/Y = 12.00 PMT = -1705.38 FV= 0 PV = 25371.80 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 TOTAL PAYMENT IN YEAR 2 = LESS : PRINCIPAL PAID = TOTAL INTEREST PAID IN YEAR 2 6821.52 (1705.38 X 4] 3509.79 [28881.59-25371.80] 3311.73 d BOND Sheet3 REAL RETURN TABLE APPENDIX CUMIPMT PV FVstate Sheet4 PV FV PRICE YTM choice CON REFIN DIFF