can not get the solution for this problem...amortization
what amortization would be required every 6 months at 14% interest, to pay off a 35,000 loan within 4 yrs? I have tried and tried and can not get it. Help.
2. tax liability of $6,420 and owes additonal taxes amounting $235/ entitled to 1 tax credit of $374 and another credit $563. employer witholds $260 every 2 wks from paycheck. how much will receive or owe. help on this one too,. have been working on it all day and nothing,.
Ok Haydee, did you check the Amortization calculator at Wikipedia like I suggested?
For your problem I think i=.07 since this would be half a year's interest, n=8 since there are two payments for 4 years and P=35,000. I'll look at the second problem shortly.
Problem 2.
tax liability = 6,420
+additional tax= 235
-tax credits = 374 + 563 = 937
__________________
tax liability = 5718
If 260 is withheld every two weeks then 5718/260 is approx. 21.99, which means at least 22 2wk periods, or 44 weeks, will be needed to pay off the tax liability, if I understand the problem correctly. Should this be another amortization type problem?
Huh? What's this about?
I have a loan of 35.000 for 21 years my payment is 304. A month at 6.5 interest. How much do I need to paytoward the principal ea h month to pay the loan off in 5 years
It seems like there was a misunderstanding in my response. I apologize for the confusion. Let's go through the problems again and address each one step by step.
Problem 1: Amortization
To calculate the required amortization amount to pay off a loan, we need to use the loan amount, interest rate, and loan duration. In this case, the loan amount is $35,000, the interest rate is 14%, and the loan duration is 4 years.
To begin, we need to convert the interest rate to a decimal form. Divide the rate by 100: 14/100 = 0.14.
Next, we need to calculate the number of periods the loan will be paid over. Since the loan duration is 4 years and payments are made every 6 months, we have a total of 8 periods (4 years x 2 payments per year = 8).
Now, we can use the amortization formula to calculate the periodic amortization payment:
Amortization Payment = (Loan Amount x Interest Rate) / (1 - (1 + Interest Rate)^(-Number of Periods))
Plugging in the values:
Amortization Payment = (35,000 x 0.14) / (1 - (1 + 0.14)^(-8))
Calculating this using a calculator or spreadsheet, the amortization payment comes out to be approximately $5,358.99 every 6 months.
Problem 2: Tax Liability and Withholdings
To calculate the amount you will receive or owe after considering tax liability, additional taxes, and tax credits, we need to subtract the tax credits from the tax liability and then subtract the withheld amount from the result.
Given:
Tax liability = $6,420
Additional taxes = $235
Tax credits = $374 + $563 = $937
Withheld amount every 2 weeks = $260
First, subtract the tax credits from the tax liability:
Tax liability after tax credits = Tax liability - Tax credits = $6,420 - $937 = $5,483
Next, divide the tax liability after tax credits by the withheld amount to determine the number of 2-week periods needed to pay off the remaining tax liability:
Number of 2-week periods needed = Tax liability after tax credits / Withheld amount = $5,483 / $260 ≈ 21.09
Since we cannot have a fraction of a 2-week period, round up to the next whole number. Therefore, you will need at least 22 (2-week) pay periods to pay off the remaining tax liability.
I hope this helps you understand how to solve these problems. Let me know if you have any further questions!