math

posted by Katelyn

A $15,000 debt is to be amortized in 12 equal semiannual payments at 5.5% interest per half-year on the unpaid balance. Construct an amortization table to determine the unpaid balance after two payments have been made. Round values in the table to the nearest cent.

  1. Jennifer

    The formula for calculating the payment amount is shown below.

    A = P * ((r(1+r)^n)/(((1+r)^n)-1)
    Simple Amortization Calculation Formula
    where

    A = payment Amount per period
    P = initial Principal (loan amount)
    r = interest rate per period
    n = total number of payments or periods

    A = 15000 * ((0.055(1.055)^12)/(((1.055)^12) - 1)

    A = 15000 * ((0.055*1.9012)/.9012)

    A = 1,740.44

    Year 1, first payment: $1740.44 Interest paid = balance * 0.055 = $15000*.055 = $825
    Principal paid = payment - interest = $ 1740.44 - 825 = 915.00
    Balance = 15000 - 915 = 14085

    Year 1, 2nd payment: $1740.44
    Interest paid = balance * 0.055 = $14085*.055 = $774.68
    Principal paid = payment - interest = $ 1740.44 - 774.68 = 965.76
    Balance = 14085 - 965.76 = 13119

    13119 is the unpaid balance after 2 payments.

  2. Anonymous

    A debt of $5000 is to be amortized with 6 equal semiannual payments. If the interest rate is 9%, compounded semiannually, what is the size of each payment

Respond to this Question

First Name

Your Answer

Similar Questions

  1. Mathematics

    I really need help with these three questions. Thank You. 1. Calculate the finance charge and new balance using the previous balance method. Previous balance = $179.32 Annual rate = 16% Finance charge $ ?
  2. Amoritizing Loans

    "A woman borrows $6000 at 9% compounded monthly, which is to be amortized over 3 years in equal monthly payments. For tax purposes, she needs to known the amount of interest paid during each year of the loan. Find the interest paid …
  3. computer programming

    Paying Off Credit Card Debt Each month, a credit card statement will come with the option for you to pay a minimum amount of your charge, usually 2% of the balance due. However, the credit card company earns money by charging interest …
  4. Computer science

    Paying Off Credit Card Debt Each month, a credit card statement will come with the option for you to pay a minimum amount of your charge, usually 2% of the balance due. However, the credit card company earns money by charging interest …
  5. math

    A $15,000 debt is to be amortized in 12 equal semiannual payments at an annual interest rate of 11% on the unpaid balance. Construct an amortization table to determine the unpaid balance after two payments have been made.
  6. Math

    A $20,000 loan is to be amortized for 10 years with quarterly payments of $763.55. If the interest rate is 9%, compounded quarterly, what is the unpaid balance immediately after the sixth payment?
  7. Business Math

    A $20,000 loan is amortized by equal semiannual payments over 10 years. If the interest rate is 8% compounded semi annually find the size of the payments. What is the unpaid balance after 6 years?
  8. Math

    Construct the amortization schedule for a 15,000 debt that is to be amortized in 10 equal semiannual payments at 6% interest per half-year on the unpaid balance
  9. Math

    A $10,000 loan is to be amortized for 10 years with quarterly payments of $349.72. If the interest rate is 7%, compounded quarterly, what is the unpaid balance immediately after the sixth payment?
  10. Precalculus

    you borrow $5,000 from your parents to purchase a used car. The arrangements of the loan are such that you make payments of $250 per month toward the balance plus 1% interest on the unpaid balance from the previous month. (a) Find …

More Similar Questions