Megan received a loan of $31,000 at 4.5% compounded monthly. She had to make payments at the end of every month for a period of 7 years to settle the loan. a. Calculate the size of payments. Round to the nearest cent b. Fill in the partial amortization schedule for the loan, rounding your answers to two decimal places. Payment Number 0 1 2 :: Total Payment Interest Portion Principal Portion :: :: Principal Balance $31,000.00 0.00

Megan received a loan of $31,000 at 4.5% compounded monthly. She had to make payments at the end of every month for a period of 7 years to settle the loan. a. Calculate the size of payments. Round to the nearest cent b. Fill in the partial amortization schedule for the loan, rounding your answers to two decimal places. Payment Number 0 1 2 :: Total Payment Interest Portion Principal Portion :: :: Principal Balance $31,000.00 0.00

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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