Question

2. For the following annuity due, determine the nominal annual rate of interest. Future Value Term Present Value Periodic Rent Payment Period Conversion Period monthly $2,581 $540 1 year 4 years %. The nominal annual rate of interest is (Round to two decimal places as needed.) 3. A company borrowed $13,000 paying interest at 8% compounded quarterly. If the loan is repaid by payments of $1800 made at the end of each 3 months, construct a partial amortization schedule showing the last three payments, the total paid, and the total interest paid. Complete the table below for the last three payments. (Do not round until the final answer. Then round to the nearest cent as needed.) Payment Outstanding Number Amount Paid Interest Paid Principal Repaid Principal 6 $1800 $ $ $ 7 $1800 $ $ $ 8 $ $ $ $0 Total Paid = $ (Do not round until the final answer. Then round to the nearest cent as needed.) Interest Paid = $ (Do not round until the final answer. Then round to the nearest cent as needed.)

Answer 1

2)
	FV	PV	PMT	Payment Period (year)	Term (years)	Conversion
Given	2581	0	540	1	4	Monthly
Nominal Annual Rate	7.25%
Effective Rate	7.50%
3) Amortization
Payment Number	Amount Paid	Interest paid	Principal Repaid	Outstanding Principal
0				$ 13,000.00
1	$1,800.00	$     260.00	$  1,540.00	$ 11,460.00
2	$1,800.00	$     229.20	$  1,570.80	$   9,889.20
3	$1,800.00	$     197.78	$  1,602.22	$   8,286.98
4	$1,800.00	$     165.74	$  1,634.26	$   6,652.72
5	$1,800.00	$     133.05	$  1,666.95	$   4,985.78
6	$1,800.00	$       99.72	$  1,700.28	$   3,285.49
7	$1,800.00	$       65.71	$  1,734.29	$   1,551.20
8	$1,800.00	$       31.02	$  1,768.98	$    (217.77)
Total	$14,400.00	$1,182.23	$13,217.77
After adjusting -$217.77 following will be the amortization table (answer)
Payment Number	Amount Paid	Interest paid	Principal Repaid	Outstanding Principal
0				$ 13,000.00
1	$1,800.00	$     260.00	$  1,540.00	$ 11,460.00
2	$1,800.00	$     229.20	$  1,570.80	$   9,889.20
3	$1,800.00	$     197.78	$  1,602.22	$   8,286.98
4	$1,800.00	$     165.74	$  1,634.26	$   6,652.72
5	$1,800.00	$     133.05	$  1,666.95	$   4,985.78
6	$1,800.00	$       99.72	$  1,700.28	$   3,285.49
7	$1,800.00	$       65.71	$  1,734.29	$   1,551.20
8	$1,582.23	$       31.02	$  1,551.20	$              -
Total	$14,182.23	$1,182.23	$13,000.00
Total Paid	$14,182.23
Interest Paid	$1,182.23

F G Term (years) 4 Conversion Monthly =E23-D24 A B с D E 1 2) 2 FV PV PMT Payment Period (year) 3 Given 2581 0 540 1 4 Nominal Annual Rate =RATE(F3,D3,C3,-B3,1) 5 Effective Rate =EFFECT(B4,12) 6 7 8 3) Amortization 9 Payment Number Amount Paid Interest paid Principal Repaid Outstanding Principal 10 0 10 0 13000 11 1 1800 =E10*8%/4 =B11-C11 =E10-D11 12 12 2 =B11 =E11*8%/4 =B12-C12 122 =E11-012 13 3 =B12 =E12*8%/4 =B13-C13 =E12-D13 14 4 =B13 =E13*8%/4 =B14-C14 =E13-D14 15 5 =B14 =E14*8%/4 =B15-C15 =E14-D15 10 16 6 =B15 =E15*8%/4 =B16-C16 E15-D16 12 17 7 =B16 =E16*8%/4 =B17-C17 =E16-D17 18 8 =B17 =E17*8%/4 =B18-C18 =E17-18 19 Total =SUM(B11:18) =SUM(C11C18) =SUM(D11:018) 20 21 After adjusting -$217.77 following will be the amortizat 22 Payment Number Amount Paid Interest paid Principal Repaid Outstanding Principal 23 O 13000 24 1 1800 =E23*8%/4 =B24-024 25 2 =B24 =E24*8%/4 =B25-C25 =E24-D25 26 3 22+0. 20 =B25 =E25*8%/4 =B26-C26 =E25-D26 2020 27 4 =B26 =B27-027 =E26-D27 0272 -2002 28 5 =B27 =E27.8%/4 22 =B28-C28 2 070/9 =E27-D28 29 6 como 2020 29 =B28 =E28*8%/4 020 =B29-C29 029-629 =E28-D29 30 7 SU =B29 =B30-C30 =E29-D30 31 8 wa =B30+E18 =E30*8%/4 =B31-C31 =E30-D31 32 Total =SUM(B24:B31) =SUM(C24:C31) =SUM(D24:D31) 33 34 Total Paid =B32 35 Interest Paid =C32 36 1 =E26*8%/4 =E29*8%/4