Locust Inc. owes $13,000.00 to be repaid by monthly payments of $490.00. Interest is 8% compounded monthly. (a) How many payments will Locust Inc. have to make? (b) How much interest is included in the 15th payment? (c) How much of the principal will be repaid in the 13th payment period? (d) Construct a partial amortization schedule showing details of the first three payments, the last three payments, an- totals. (d) Complete the table below for the first three payments in the schedule. (Do not round until the final answer. Then round to the nearest cent as needed.) Payment Number Amount Paid Interest Paid 0 1 2 $490.00 $ 86.67 $ 403.33 $490.00 $84.64 $ 405.36 3 $490.00 $ 82.58 $ 407.24 Complete the table for the last three payments, starting with the third-to-last payment.. (Do not round until the final answer. Then round to the nearest cent as needed.) Payment Number Amount Paid Interest Paid 28 ***** 29 $490.00 $490.00 $7.41 $4.19 Principal Repaid Outstanding Principa Balance $13,000.00 $ 12596.67 $ 12191.31 $11783.89 G Principal Repaid $ 483.76 $629.01 Mom Outstanding Principal Balance $629.01

Locust Inc. owes $13,000.00 to be repaid by monthly payments of $490.00. Interest is 8% compounded monthly. (a) How many payments will Locust Inc. have to make? (b) How much interest is included in the 15th payment? (c) How much of the principal will be repaid in the 13th payment period? (d) Construct a partial amortization schedule showing details of the first three payments, the last three payments, an- totals. (d) Complete the table below for the first three payments in the schedule. (Do not round until the final answer. Then round to the nearest cent as needed.) Payment Number Amount Paid Interest Paid 0 1 2 $490.00 $ 86.67 $ 403.33 $490.00 $84.64 $ 405.36 3 $490.00 $ 82.58 $ 407.24 Complete the table for the last three payments, starting with the third-to-last payment.. (Do not round until the final answer. Then round to the nearest cent as needed.) Payment Number Amount Paid Interest Paid 28 ***** 29 $490.00 $490.00 $7.41 $4.19 Principal Repaid Outstanding Principa Balance $13,000.00 $ 12596.67 $ 12191.31 $11783.89 G Principal Repaid $ 483.76 $629.01 Mom Outstanding Principal Balance $629.01

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 17P

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