Jillian and Collin borrowed $62,000 at 7.61% compounded monthly as a second mortgage loan against their current home. Repayment amount is $6,900 at the end of every six months. a. How many payments are required to repay the loan? Number of payments b. Use the given information to complete the amortization table below. Determine the missing values for the first two payment intervals, the last two payment intervals, and the totals. Report results to the nearest cent. Payment Amount Number Paid ($) 0 1 2 : : N - 1 N Total 6,900.00 6,900.00 : : = 6,900.00 Interest Paid ($) : : : Principal Repaid ($) : : Outstanding Balance ($) 62,000.00 : : 0.00

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
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Jillian and Collin borrowed $62,000 at 7.61% compounded monthly as a second
mortgage loan against their current home. Repayment amount is $6,900 at the end of
every six months.
a. How many payments are required to repay the loan?
Number of payments
b. Use the given information to complete the amortization table below.
Determine the missing values for the first two payment intervals, the last two
payment intervals, and the totals. Report results to the nearest cent.
Payment Amount
Number
Paid ($)
0
1
2
:
:
N - 1
N
Total
6,900.00
6,900.00
:
:
=
6,900.00
Interest
Paid ($)
:
:
:
Principal
Repaid ($)
:
:
Outstanding
Balance ($)
62,000.00
:
:
0.00
Transcribed Image Text:Jillian and Collin borrowed $62,000 at 7.61% compounded monthly as a second mortgage loan against their current home. Repayment amount is $6,900 at the end of every six months. a. How many payments are required to repay the loan? Number of payments b. Use the given information to complete the amortization table below. Determine the missing values for the first two payment intervals, the last two payment intervals, and the totals. Report results to the nearest cent. Payment Amount Number Paid ($) 0 1 2 : : N - 1 N Total 6,900.00 6,900.00 : : = 6,900.00 Interest Paid ($) : : : Principal Repaid ($) : : Outstanding Balance ($) 62,000.00 : : 0.00
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