Please show the work process. Thank you so much 39. Suppose that in the loan, de
ID: 2647408 • Letter: P
Question
Please show the work process. Thank you so much
39. Suppose that in the loan, described, the borrower paid off the loan after the time indicated. Calculate the amount needed to pay off the loan.
$110,000; 8% compounded quarterly; 15 quarterly payments; paid off after 10 quarters.
$167,136.41 B) $76,898.11 C) $12.85 D) $40,350.98
27. $10,100; 8.25% compounded monthly; 48 monthly payments
A) $247.76 B) $1217.28 C) $246.66 D) $261.74
Explanation / Answer
Ans A: Loan installement at the start : Principal= $110,000 , Interest = 8% compounded quarterly , Number of installements = 15
Therefore intallment amount is $ 8393.94
Loan amount outstanding after 10th installment : PMT= $8393.94, Interest = 8% compounded quarterly; Number of installment = 10
Therefore principal outstanding at the end of 10th installment is $ 76,898.65
Ans B: Principal: $ 10,100; Interest: 8.25%componded monthly; installment : 48 nos
Monthly installment: $ 247.76