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

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Question 71

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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.

A) $240.51
B) $285.95
C) $150.28
D) $214.13
E) $5.92

F) None of the above
G) B) and E)

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Question 72

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A debt of $12 970.00 with interest at 7.23% compounded semi-annually is repaid by payments of $1880.00 made at the end of every three months. Construct an amortization schedule showing the total paid and the total cost of the debt.

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p = - 1 = 0.0179145...

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Question 73

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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?

A car loan of $46 700.00 is amortized over 8 years by equal monthly payments at 2.9% compounded monthly. What is the monthly payment and outstanding principal balance after 40 payments.

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.

The Korean community is planning to buy a place for their community in Markham valued at $1 697 000. They made a down payment of 10% and payments of $400 000 are required at the end of every 3 months. If interest is 9% compounded monthly, what is the size of the final payment

A debt of $41 000.00 is repaid in monthly installments of $660.00. If interest is 8.4% compounded quarterly, what is the size of the final payment?

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?

Shiva transferred his mortgage of $145 981 from CIBC to BMO for the remaining amortization period at 3.59% compounded semi-annually. He has agreed to pay rounded up payment of $2000 every month. How long will it take Shiva to pay-off his mortgage?

Tom receives pension payments of $6000.00 at the end of every six months from a retirement fund of $90 000.00. The fund earns 8.00% compounded semi-annually. a)How many payments will Tom receive? b)What is the size of the final pension payment?

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.

Amanda borrowed $57 800 from BMO to buy a 2014 E-Class Mercedes Sedan at 3.9% compounded monthly. Payments of $2056 are required at the end of every month. Construct a complete amortization schedule in MS Excel showing the details of all payments and the total.