Deck 5: Repayment of Debts

Question 1

The interest portion of the 9^th payment of $R on an amortized loan repaid monthly is $8.42.The interest portion of the 10^th payment of $R is $7.77.If interest rate is j₁₂ = 18%.What is R?

A)$12.03
B)$35.72
C)$51.75
D)$60.30

Answer 1

$51.75

Question 2

A loan is being repaid with level annual payments of $1040 on July 30^th of each year.The last $1040 loan payment is to be made on July 30,2015 and the interest portion of this final payment is $40.What is the principal portion of the payment made on July 30,2010?

A)$821.93
B)$828.03
C)$854.80
D)$863.84

Answer 2

$821.93

Question 3

A loan is being amortized over n-years with monthly payments of $295.32.The rate of interest on the loan is j₁₂ = 12%.The principal repaid in the 25^th payment is $206.41.The outstanding balance after 25 payments (months)is $8684.79.What is the outstanding balance immediately after the 26^th payment?

A)$8389.47
B)$8476.32
C)$8478.38
D)$8597.94

Answer 3

$8476.32

Question 4

A company borrows $100,000 with interest at j₁₂ = 9%.The loan is to be amortized by monthly payments of $1550 for as long as necessary.A final smaller payment will be calculated so the loan will be exactly repaid.The outstanding balance immediately after the 88^th payment is $796.44.What is the value of the 89^th and final payment?

A)$790.51
B)$796.44
C)$802.41
D)$808.43

Question 5

A loan is being repaid over 8 years with 32 quarterly payments of $362.19 at j₄ = 8%.Under the amortization method,how much of the 3^rd payment goes towards interest on the loan?

A)$158.24
B)$162.24
C)$199.95
D)$203.95

Question 6

The interest portion of the 10^th payment of $R on an amortized loan repaid monthly is $7.82,while the principal portion of the 10^th payment $43.93.If interest rate on the loan is j₁₂ = 18%,what is the term of the loan (n)in months? (Answer to the nearest month)

A)20
B)21
C)136
D)137

Question 7

A loan at j₄ = 8.6% is being repaid over n-quarters,with quarterly payments of $647.18.The portion of the 9^th payment that goes towards principal is $349.23.What is the value of n?

A)29
B)37
C)38
D)39

Question 8

A loan is amortized at j₂ = 12% with semi-annual payments of $R.The outstanding balance of the loan after 13 payments is $7049.29 and the outstanding balance after 14 payments is $6377.10.What is R?

A)$1095.15
B)$1054.82
C)$805.58
D)672.19

Question 9

Bill takes out a loan at j₄ = 6%,paid back with quarterly payments for 4.5 years.In the first payment,the principal repaid is $401.87.What is the amount of the loan? (Answer to the nearest dollar)

A)$6298
B)$7234
C)$8234
D)$8358

Question 10

The principal portion of the 20^th payment of $R on an amortized loan is $340.95 and the principal portion of the 21^st payment of $R is $348.11.If there are 55 payments in total,what is R?

A)$647.25
B)$659.69
C)$702.43
D)$720.47

Question 11

A loan of $A is taken out at j₁₂ = 6% and is repaid with monthly payments of $184.91.The principal portion of the 12^th monthly payment is $115.00.What is A? (Answer to the nearest dollar)

A)$12,564
B)$12,684
C)$15,210
D)$15,318

Question 12

A loan of size A is to be amortized by monthly payments of $1000.The rate of interest on the loan is j₁₂ = 18%.The outstanding balance immediately after the 4^th monthly payment is $12,000.How much principal is repaid in the 12^th monthly payment?

A)$923.72
B)$914.50
C)$910.07
D)$896.62

Question 13

Exactly five years ago,a $100,000 condominium was purchased by making a $65,000 down payment and taking out a $35,000 mortgage.The mortgage interest rate was j₂ = 8% and monthly mortgage payments of $267.10 have been made at the end of each month for the past five years.What is the purchaser's equity (buyer's equity)position today? (Answer to nearest dollar)

A)$32,249
B)$67,249
C)$67,751
D)$80,441

Question 14

A loan is being amortized over n-years with monthly payments of $295.32.The rate of interest on the loan is j₁₂ = 12%.The principal repaid in the 25^th payment is $206.41.What is the size of the loan? (Answer to the nearest dollar)

A)$13,276
B)$13,437
C)$16,095
D)$16,256

Question 15

A $200,000 home is financed by paying by making a $60,000 down payment and taking out a $140,000 mortgage.The equivalent mortgage interest rate is j₁₂ = 7.87% and monthly mortgage payments of $1068 are to be made.What is the buyer's equity when the mortgage renews 5 years from today? (Answer to the nearest dollar)

A)$129,028
B)$70,972
C)$61,792
D)$10,972

Question 16

A loan of $A is repaid over 10 years with quarterly payments at j₄ = 10%.The principal portion of the 12^th payment is $300.52.What is A? (Answer to the nearest dollar)

A)$15,438
B)$15,061
C)$11,979
D)$9,898

Question 17

A company borrows $100,000 with interest at j₁₂ = 9%.The loan is to be amortized by monthly payments of $1550 for as long as necessary.A final smaller payment will be calculated so the loan will be exactly repaid.What is the amount of interest paid in the 2^nd monthly payment of $1550?

A)$806.00
B)$755.63
C)$745.42
D)$744.00

Question 18

A loan is taken out at j₁₂ = 18% and is paid back with monthly payments of $279.00,plus a smaller concluding payment.With one month left on the loan,the outstanding balance is $268.66.What is the size of the final loan payment?

A)$279.00
B)$272.69
C)$268.66
D)$264.63

Question 19

A loan is being repaid by 20 equal semi-annual installments.The principal portion of the 8^th payment is $245.29 and the interest portion is $254.71.What interest rate,j₂ is being charged on the loan?

A)12.23%
B)11.26%
C)10.96%
D)10.65%

Question 20

A loan is being amortized with 20 annual payments of principal and interest.The principal repaid in the 13^th payment is $801.45 and the interest portion of the 13^th payment is $698.55.What is the effective annual rate of interest,j₁ being charged on this loan?

A)11.01%
B)10.02%
C)9.37%
D)8.15%

Question 21

What is the interest portion of the third (3^rd)payment?

A)$129.44
B)$136.40
C)$156.85
D)$470.56

Question 22

Sandy takes out a loan of $22,000 at j₁₂ = 9%,repaid over 5 years with monthly payments.After 24 payments,the outstanding balance on the loan is $14,361.35.Just after the 24^th payment,Sandy makes a lump sum payment of $3000 and refinances the loan with monthly payments for two more years at the same interest rate.What is the new monthly payment?

A)$361.29
B)$473.39
C)$519.04
D)$656.09

Question 23

A loan of $12,000 is being repaid over 5-years with the following payment history:
• Quarterly payments of $769.77 for the first two years at j₄ = 10%
• Loan refinanced at j₄ = 8%,with quarterly payments dropping to $746.65 for one year
• Loan refinanced again,this time at j₄ = 6%
What is the outstanding balance of the loan at this point in time (after 3 years,with 8 payments remaining)?

A)$5469.57
B)$5589.37
C)$5638.94
D)$6023.86

Question 24

A couple purchases a $400,000 home by paying $150,000 cash and financing the rest with a mortgage.They make weekly mortgage payments of $400,first payment made one week after the mortgage loan is taken out.The mortgage rate is j₂ = 7%,locked in for 5-years.What is the couple's equity when the mortgage renews? (Answer to the nearest dollar)

A)$228,602
B)$148,963
C)$235,104
D)$171,398

Question 25

The final payment of a loan with semi-annual payments consists of $5 in interest and $250 in repayment of principal.What is the nominal rate of interest compounded semi-annually,j₂ that is being charged on this loan?

A)j₂ < 1.9%
B)1.9% ≤ j₂ < 2.9%
C)(C).2.9% ≤ j₂ < 3.9%
D)j₂ ≥ 3.9%

Question 26

A loan is to be repaid with n equal monthly payments.If the sum-of-digits method is applied,the sum of the amount of interest paid in the first (I₁)and last month (I_n)is equal to the half of the total amount interest paid.What is the value of n?

A)4
B)5
C)6
D)Value of n cannot be determined.

Question 27

A loan of size A is to be amortized by monthly payments of $1000.The rate of interest on the loan is j₁₂ = 18%.The outstanding balance immediately after the 4^th monthly payment is $12,000.What is A? (Answer to the nearest dollar)

A)$15,075
B)$15,161
C)$16,000
D)$16,091

Question 28

Jim buys a car worth $20,000.He makes a down payment of $1000 and repays the balance with equal monthly payments of $450 at the end of each month for as long as is necessary.If interest on the loan is j₁₂ = 6%,what is the outstanding balance after 24 payments have been made?

A)$9,971.66
B)$10,153.29
C)$11,098.82
D)$11,262.75

Question 29

A debt is amortized at j₄ = x%by payments of $300 per quarter.You are given that the outstanding balance is $6279.09 just after the k^th payment and the outstanding balance is $6136.07 just after the (k + 1)^st payment.What is x?

A)14.30%
B)7.22%
C)28.88%
D)10.00%

Question 30

A house is purchased with a down payment of $25,000 with the remaining $175,000 financed through a mortgage at j₁₂ = 9% with monthly payments of $1500 for as long as necessary.What is the seller's equity after 15 years (180 payments)?

A)$118,413
B)$104,049
C)$95,951
D)$70,951

Question 31

A $22,500 loan is being repaid with annual payments of $4000 at the end of each year for 5 years,followed by annual payments of $2000 thereafter for as long as is needed.The interest rate is j₁= 7%.What is the outstanding balance of the loan just after the 6^th payment?

A)$5,153.27
B)$7,153.27
C)$8,763.47
D)$10,763.47

Question 32

A loan of $3000 is to be repaid by annual payments of $400 for 5 years followed by annual payments of $450 for as long as necessary (first payment one year from now).If the interest rate on the loan is j₁ = 7%,what is the outstanding balance immediately after the 8^th payment?

A)$1407.56
B)$1050.64
C)$889.89
D)$537.65

Question 33

A loan of $A is taken out and is to be repaid with level monthly payments over n-years at j₁₂ = 18%.The outstanding balance after 75 payments is $16,855.14 and after 76 payments is $16,590.17.What is the monthly payment?

A)$252.83
B)$264.97
C)$513.82
D)D)$517.80

Question 34

A debt is amortized at j₄ = x%by payment of $300 per quarter.You are given that the outstanding balance is $6279.09 just after the k^th payment and the outstanding balance is $6136.07 just after the (k+1)^st payment.What is x?

A)7.22%
B)10.00%
C)14.30%
D)28.88%

Question 35

At the end of 2-years,the loan is refinanced at j₄ = 4% and paid back over 3 more years.What is the new quarterly payment?

A)$581.47
B)$551.33
C)$568.89
D)$520.40

Question 36

A woman takes out a loan to be paid back over 4 years at j₁₂ = 6% with monthly payments of 281.82.After 14 payments,the outstanding balance on the loan is $8791.53.She then misses the next 4 payments (from time 15 to 18).She begins making regular monthly payments at time 19.If she still wants to pay back her loan in full by the end of 4 years,what is the size of her new monthly payment?

A)$324.30
B)$321.08
C)$322.68
D)$311.48

Question 37

A loan is being repaid with monthly payments of $250 at the end of each month.The loan interest rate is j₁₂ = 7.5%.The outstanding loan balance immediately after the 22^nd payment is $5404.80.What is the principal portion of the 30^th payment?

A)$227.27
B)$35.29
C)$225.86
D)$214.71

Question 38

A loan is being repaid over 8 years with 32 quarterly payments of $362.19 at j₄ = 8%.Under the amortization method,what is the outstanding balance of the loan immediately after the 15^th payment?

A)$5326.58
B)$5261.81
C)$5176.37
D)$4653.87

Question 39

A loan of $36,000 is to be repaid by quarterly payments over 10 years at j₄ = 8%.The first payment is $1000,the 2^nd payment is $1020,the 3^rd payment is $1040 and so on.The principal repaid in the first payment is $280.What is the outstanding balance of the loan after the 2^nd payment?

A)$35,414.40
B)$35,420.00
C)$35,434.40
D)$35,700.00

Question 40

A company borrows $100,000 with interest at j₁₂ = 9%.The loan is to be amortized by 88 monthly payments of $1550,plus a final smaller payment.What is the outstanding balance after 40 payments have been made?

A)$63,361.21
B)$62,842.79
C)$62,286.41
D)$28,007.93

Question 41

A loan at j₁₂ = 6%,is being repaid with monthly payments of $154.66 for 5 years using the sum of digits method.The total interest over the life of the loan is $1279.60.What is the outstanding balance of the loan after 2 years?

A)$5083.83
B)$5102.07
C)$5357.99
D)$5567.76

Question 42

A debt of $15,000 with interest at j₂ = 9% is to be paid back over 15 years with semi-annual payments of $920.87.What is the outstanding balance after 18 payments using the sum of digits method? (Answer to the nearest dollar)

A)$8,397
B)$8,933
C)$9,166
D)$10,697

Question 43

A $6000 loan is to be repaid with monthly payments of $142.74 over 5-years at j₁₂ = 15%.What is the principal portion of the 30^th monthly payment using the sum of digits method?

A)$43.44
B)$89.97
C)$99.30
D)$100.70

Question 44

A loan of $10,000 is repaid over 10 years with annual payments of $1358.68 at j₁ = 6%.How much of the 6^th payment goes towards interest using the sum of digits method?

A)$391.29
B)$343.39
C)$326.07
D)$260.86

Question 45

A 10 year $25,430 loan is being paid off with semi-annual payments of $3679.The total interest over the life of the loan is $48,150.What is the outstanding balance of the loan after two years assuming the sum of digits method?

A)$27,014.14
B)$27,681.14
C)$31,182.86
D)$32,386.73

Question 46

A woman takes out a loan to be paid back over 4 years at j₁₂ = 6% with monthly payments of 281.82.After 14 payments,the outstanding balance on the loan is $8791.53.She then misses the next 4 payments (from time 15 to 18).She begins making regular monthly payments at time 19.If she still wants to pay back her loan in full by the end of 4 years,what is the size of her new monthly payment?

A)$311.48
B)$321.08
C)$322.68
D)$324.30

Question 47

Jim takes out a $10,000 loan at j₄ = 10%,to be paid back with quarterly payments over 5 years.At the end of 2 years,the outstanding balance is $6,580.07.At that time,Jim makes a lump sum payment of $500 and then refinances the loan at j₄ = 8%.He also intends to repay the remainder of the loan over just 2 more years.What is the new quarterly payment?

A)$898.24
B)$847.97
C)$829.99
D)$574.93

Question 48

A loan for $15,000 is taken out from a loan company that uses the sum of digits method.It is to be paid back over 15 years with semi-annual payments of $920.87 at j₂ = 9%.What is the outstanding balance of the loan after 16 payments?

A)$10,041.13
B)$9,633.83
C)$9,413.99
D)$9,199.38

Question 49

A loan is being repaid over 8 years with 32 quarterly payments of $362.19 at j₄ = 8%.If the total amount of interest paid over the life of the loan is $3090.08,what is the outstanding balance of the loan immediately after the 18^th payment using the sum-of-digits method?

A)$4982.87
B)$4456.16
C)$4384.76
D)$4069.90

Question 50

A loan of $15,000 at j₂ = 9%,is to be paid back over 10 years with semi-annual payments of $1153.14.The total interest paid over the life of the loan is $8062.83.Using the sum of digits method,what is the outstanding balance of the loan after 6 years (12 payments)?

A)$6230.37
B)$7606.03
C)$7842.95
D)$9225.12

Question 51

A corporation takes out a $100,000 loan to be repaid over 6-years with quarterly payments at j₄ = 10%.The total interest to be paid on the loan over the 6 years is $34,190.77.Using the sum of digits method,the outstanding balance of the loan immediately after the 16^th payment is $40,627.40.How much of the 17^th payment goes towards interest using the sum of digits method?

A)$1218.82
B)$1025.72
C)$1015.69
D)$911.75

Question 52

A $60,000 loan is paid back over 10 years with monthly payments of $790.18 at j₁₂ = 9.918%.What is the outstanding balance of the loan after 4 years using the sum of digits method? (Answer to the nearest dollar)You are given: Total interest = $34,821.12.

A)$42,110
B)$44,288
C)$51,252
D)$56,890

Question 53

Anderson takes out a loan of $22,000 at j₁₂ = 9% to be repaid over 5 years with monthly payments.After 24 payments,the outstanding balance on the loan is $14,361.35,but Anderson misses the next 10 monthly payments.At the end of the 34^th month,he makes a lump sum payment of $3000 and refinances the loan such that he still pays off the loan at the end of 5 years.If the interest rate is unchanged,what is the new monthly payment (first payment made at time 35)?

A)$473.39
B)$519.04
C)$529.92
D)$549.13

Question 54

A loan is being repaid with monthly payments of $1349.59 for 20 years using the sum of digits method.The total interest over the life of the loan is $173,901.60.What is the interest rebate after 140 payments? (Answer to the nearest dollar)

A)$30,367
B)$59,350
C)$72,459
D)$101,443

Question 55

A corporation takes out a $100,000 loan to be repaid over 6-years with quarterly payments at j₄ = 10%.Under the amortization method,the outstanding balance of the loan after 4 years is $40,090.26.At this time the company refinances the loan,without penalty.The new loan rate is j₄ = 8% and the company makes an additional lump sum payment of $5000.What is the new quarterly payment,assuming the loan is still paid back in full after 6 years?

A)$4790.16
B)$4893.95
C)$5472.71
D)$5591.28

Question 56

A woman takes out a loan to be paid back over 4 years at j₁₂ = 6% with monthly payments of $281.82.After 14 payments,the outstanding balance on the loan is $8791.53.The woman then misses the next 3 payments (from time 15 to 17).She begins making regular monthly payments at time 18.If she still intends to pay back her loan in full by the end of 4 years,what is the size of her new monthly payment? (she has 31 payments left)

A)$306.85
B)$308.39
C)$311.48
D)$313.03

Question 57

A loan for $15,000 is taken out from a loan company that uses the sum of digits method.It is to be paid back over 15 years with semi-annual payments of $920.87 at j₂ = 9%.What is the interest portion of the 11^th payment?

A)$420.87
B)$515.90
C)$526.08
D)$543.06

Question 58

A 5-year $6000 loan is to be repaid with monthly payments of $115.99 at j₁₂ = 6%.Just after making the 30^th payment,the borrower has the balance refinanced at j₁₂ = 3% with the term of the loan to remain unchanged.If the balance is determined by the sum-of-digits method,what will be the new monthly payment?

A)$121.30
B)$118.20
C)$115.99
D)$112.09

Question 59

A corporation takes out a $100,000 loan to be repaid over 6-years with quarterly payments of $5591.28 at j₄ = 10%.The total interest to be paid on the loan over the 6 years is $34,190.72 Under the sum of digits method,what is the outstanding balance after 10 payments?

A)$65,367
B)$66,311
C)$72,010
D)$78,278

Question 60

A loan of $10,000 is to be repaid over 6 years with equal monthly payments at j₁₂ = 15%.After 4 years,the outstanding balance on the loan is $4361.00.The loan carries a prepayment penalty equal to 3 times one month's interest on the outstanding balance.The borrower refinances the loan with another bank over the remaining 2 years at j₁₂ = 12%.Taking into account the penalty,what is the new monthly payment?

A)$219.38
B)$217.79
C)$212.99
D)$211.45

Question 61

A city borrows $1 million,paying semi-annual interest at j₂ = 9%.The city creates a sinking fund in which semi-annual deposits of $35,360.93 are made in order to accumulate the $1 million needed to repay the loan upon maturity.The sinking fund earns j₂ = 7%.What is the book value of the debt at the end of the 6 years? (Answer to the nearest dollar)

A)$231,621
B)$483,660
C)$516,340
D)$768,379

Question 62

A city borrows $1,000,000 at j₂ = 9.5%.They pay off this loan over eight years using the sinking fund method.The sinking fund interest rate is j₂ = 8%.What is the book value of the debt after 5 years? (loan interest and sinking fund deposits are made semi-annually; (Answer to the nearest dollar)

A)$429,710
B)$449,880
C)$463,738
D)$482,113

Question 63

A $100,000 debt is being repaid over 10 years using a sinking fund earning j₁ = 6%.What is the book value of the debt after 4 years? (Answer to the nearest dollar)

A)$33,189
B)$47,080
C)$52,920
D)$66,811

Question 64

On a debt of $10,000,interest is paid semi-annually at j₂ = 10% and semi-annual deposits are made into a sinking fund to retire the debt at the end of 5 years.The sinking fund earns interest at j₁₂ = 6%.What is the semi-annual expense of the debt?

A)$2382.13
B)$1370.79
C)$2324.87
D)$870.79

Question 65

A woman borrows $30,000 from a loan company to be repaid by monthly payments of $746.55 over 4 years at j₁₂ = 9%.What is the total amount interest paid in her second and third payments using the sum of digits method?

A)$471.32
B)$451.47
C)$461.39
D)$438.24

Question 66

A $200,000 debt at j₂ = 7% is being repaid over 10 years using the sinking fund method,where the sinking fund earns interest at j₂ = 6%.What is the book value of the loan at the end of 6 years?

A)$105,633.26
B)$100,655.79
C)$94,366.72
D)$91,315.56

Question 67

What is the interest portion of the 5^th payment?

A)$614.31
B)$570.19
C)$582.95
D)$575.92

Question 68

A city issues $100,000 worth of bonds,redeemable at par and paying interest at j₂ = 7%.A sinking fund,earning j₂ = 11%,is created to pay for the redemption of the bonds.The semi-annual cost of the debt is $6367.93.What is the book value of the debt at the end of 6 years?

A)$53,007.27
B)$80,245.55
C)$46,992.73
D)$23,584.84

Question 69

A sinking fund is established with monthly deposits of $50 earning an interest rate j₁₂ = 12%.If the balance immediately after the n^th deposit equals $1161.96,what was the balance immediately after the (n-1)^th deposit?

A)$1150.46
B)$1123.08
C)$1111.96
D)$1100.95

Question 70

A $10,000 bond paying semi-annual coupons at j₂ = 8% is redeemable for $10,200 in 10 years.A sinking fund is set up at j₂ = 4% to provide the necessary funds at maturity.What is the semi-annual expense of the bond?

A)$819.80
B)$811.57
C)$753.82
D)$742.53

Question 71

A company has borrowed $A and has agreed to pay interest on the loan every 3-months at j₄ = 8% and pay back the $A in one lump sum at the end of 11 years.The company will make quarterly deposits in a sinking fund earning j₄ = 4% to accumulate to $A by the end of 11 years.If the book value of the loan after 5 years is $81,485,what is the value of A? (Answer to the nearest $100)

A)$114,100
B)$119,300
C)$125,300
D)$136,000

Question 72

A couple wishes to save for a down payment of $50,000 on a house.They deposit money at the end of every 3 months for 4 years into a sinking fund to achieve their goal.If the sinking fund earns interest at j₁₂ = 6%,what quarterly deposit does the couple need to make?

A)$2786.64
B)$2788.25
C)$3538.25
D)$3540.37

Question 73

A city borrows $1 million,paying semi-annual interest at j₂ = 6%.The city creates a sinking fund in which semi-annual deposits of $35,360.93 are made in order to accumulate the $1 million needed to repay the loan upon maturity.The sinking fund ends earns j₂ = 7%.You are given that the book value of the debt immediately after the 12^th payment is $483,661.06.How much has been accumulated in the sinking fund immediately after the 13^th deposit of $35,360.93?

A)$516,338.94
B)$534,410.81
C)$535,950.12
D)$569,771.73

Question 74

A city issues $100,000 worth of bonds paying interest at j₂ = 7%.They make semi-annual deposits in a sinking fund to pay for the redemption of the bonds.The city decides to take some risk in their investing,so it turns out that the sinking fund earns j₂ = 8%.The semi-annual cost of the debt is $6,858.18.What is the book value of the debt at the end of 2 years? (Answer to the nearest dollar)

A)$70,877
B)$71,093
C)$85,740
D)$85,845

Question 75

A $50,000 bond pays semi-annual coupons at j₂ = 8% is redeemable at 105 in 15 years.The bond carries a sinking fund provision requiring the issuer to make semi-annual deposits into a sinking fund.If the sinking fund earns j₂ = 6%,what is the semi-annual expense of this debt (i.e.this bond issue)?

A)$2891.50
B)$2936.08
C)$3050.96
D)$3103.51

Question 76

A corporation takes out a loan of $A,to be paid back over 12 years using the sinking fund method.The interest rate on the loan is j₄ = 8%,while the sinking fund earns j₄ = 7%.The quarterly expense of debt is $6,509.08.What is the value of A? (Answer to the nearest dollar)

A)$194,500
B)$199,654
C)$210,209
D)$216,235

Question 77

A sinking fund is being accumulated at j₁₂ = 6% by deposits of $200 per month to repay the loan of $10,000.If the book value of debt is 4605.31 just after the k^th deposit,what is the book value of debt just after the (k+1)^st deposit?

A)$4378.34
B)$4383.39
C)$4405.31
D)$4578.34

Question 78

A $145,000 loan is repaid over 10 years using the sinking fund method.The sinking fund earns interest at j₂ = 6%,while the interest rate on the loan is j₂ = 8%.What is the semi-annual expense of debt?

A)$9,219.35
B)$11,196.28
C)$15,546.28
D)$18,448.43

Question 79

A loan of $10,000 is taken out and is to be paid back over 10 years using the sinking fund method.Annual interest payments on the loan are due at j₁.Annual deposits into a sinking fund earning j₁ = 5% are made to accumulate the $10,000.The annual expense (cost)of debt is $1445.What is j₁?

A)6.30%
B)6.40%
C)6.50%
D)6.75%

Question 80

What is the outstanding balance of the loan after 6 years (12 payments)?

A)$6230.37
B)$7606.03
C)$7842.95
D)$9225.12