1 A design studio received a loan of $7,800 at 6.10% compounded semi-annually topurchase a camera. If they settled the loan in 2 years by making quarterly payments,construct the amortization schedule for the loan and answer the following questions:a. What was the payment size?Round to the nearest centb. What was the size of the interest portion on the first payment?Round to the nearest cent b. What was the size of the interest portion on the first payment?Round to the nearest centc. What was the balance of the loan at end of the first year?Round to the nearest centd. What was the size of the interest portion on the last payment?Round to the nearest cent

Given, The loan amount is $7,800 Interest rate is 6.10% compounded semi annually. Term of loan is 2…

A design studio received a loan of $7,800 at 6.10% compounded semi-annually to purchase a camera. If they settled the loan in 2 years by making quarterly payments, construct the amortization schedule for the loan and answer the following questions: a. What was the payment size?

A design studio received a loan of $7,800 at 6.10% compounded semi-annually to purchase a camera. If they settled the loan in 2 years by making quarterly payments, construct the amortization schedule for the loan and answer the following questions: a. What was the payment size?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

A design studio received a loan of $7,800 at 6.10% compounded semi-annually to
purchase a camera. If they settled the loan in 2 years by making quarterly payments,
construct the amortization schedule for the loan and answer the following questions:
a. What was the payment size?
Round to the nearest cent
b. What was the size of the interest portion on the first payment?
Round to the nearest cent

b. What was the size of the interest portion on the first payment?
Round to the nearest cent
c. What was the balance of the loan at end of the first year?
Round to the nearest cent
d. What was the size of the interest portion on the last payment?
Round to the nearest cent

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