## 1.Vincent had to make payments of $1,125.00 every 6 months to settle a $28,000.00 loan that he received at 6.52% compounded semi-annually.

1.Vincent had to make payments of $1,125.00 every 6 months to settle a $28,000.00 loan that he received at 6.52% compounded semi-annually.

a. How long did it take to settle the loan?

_____years _____months

b. What was the interest portion and principal portion of payment number 4?

Interest Portion

$_____

Round to the nearest cent.

Principal

$_____

Round to the nearest cent.

2. A loan of $432,000 at 4.62% compounded quarterly was to be settled with month-end payments of $9,500. What will be the balance on the loan at the end of 3 years?

$_____

3. Carlos spent $290,000 to purchase machinery for his factory. He received a loan for the entire amount at 4.32% compounded quarterly and made quarterly payments of $6,625 to settle the loan.

a. How long will it take to settle the loan?

____years_____ months

b. What was the interest portion and principal portion of payment number 5?

Interest Portion

$____

Round to the nearest cent.

Principal

$____

Round to the nearest cent.

c. What was the total amount of interest and principal paid by the end of 4 years?

Interest Portion

$____

Round to the nearest cent.

Principal

$____

Round to the nearest cent.

4. A loan of $30,900 at 3.73% compounded semi-annually is to be repaid with payments at the end of every 6 months. The loan was settled in 4 years.

a. Calculate the size of the periodic payment.

$____

Round to the nearest cent.

b. Calculate the total interest paid.

$____

Round to the nearest cent.

5. A design studio received a loan of $7,800 at 6.60% compounded semi-annually to purchase a camera. If they settled the loan in 3 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.

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.