Section PF.12 – Solutions to the Practice Problems
1.
a. $130,397.13
b. $252,000.00
c. $121,602.87
2.
a. $12,625.50
b. $15,000.00
c. $2,374.50
3.
a. $194,346.78
b. $450,000.00
c. $255,653.22
4.
a. $141,772.87
b. $306,000.00
c. $164,227.13
5. $546.72
6. $863.16
7.
a. $180,000.00
b. $966.28
c. $1079.19
8.
a. $1,618.79
b. $282,764.40
9. $542.38
10. $974.29
11. $354.15
12.
a. $265.61
b. $749.28
13.
a. $10,033.37
b. $4,966.63
14.
a. $85,255.89
b. $194,744.11
15.
a. $20,000.00
b. $180,000.00
c. $5,400.00
d. $758.89
e. $273,200.40
f. $93,200.40
g.
|
Month |
Prior Balance |
Interest on Prior Balance |
Monthly Payment |
Ending Balance |
|
1 |
$180,000.00 |
$450.00 |
$758.89 |
$179,691.11 |
|
2 |
$179,691.11 |
$449.23 |
$758.89 |
$179,381.45 |
|
3 |
$179,381.45 |
$448.45 |
$758.89 |
$179,071.01 |
16.
a. $28,000.00
b. $112,000.00
c. $1,120.00
d. $885.69
e. $159,424.20
f. $47,424.20
g.
|
Month |
Prior Balance |
Interest on Prior Balance |
Monthly Payment |
Ending Balance |
|
1 |
$112,000.00 |
$466.67 |
$885.69 |
$111,580.98 |
|
2 |
$111,580.98 |
$464.92 |
$885.69 |
$111,160.21 |
|
3 |
$111,160.21 |
$463.17 |
$885.69 |
$110,737.69 |
17.
a. $202.59
b. $12,155.40
c. $1,155.40
d.
|
Month |
Prior Balance |
Interest on Prior Balance |
Monthly Payment |
Ending Balance |
|
1 |
$11,000.00 |
$36.67 |
$202.59 |
$10,834.08 |
|
2 |
$10,834.08 |
$36.11 |
$202.59 |
$10,667.60 |
|
3 |
$10,667.60 |
$35.56 |
$202.59 |
$10,500.57 |
18.
a. $290.00
b. $17,400.00
c. $2,400.00
d.
|
Month |
Prior Balance |
Interest on Prior Balance |
Monthly Payment |
Ending Balance |
|
1 |
$15,000.00 |
$75.00 |
$290.00 |
$14,785.00 |
|
2 |
$14,785.00 |
$73.93 |
$290.00 |
$14,568.93 |
|
3 |
$14,568.93 |
$72.84 |
$290.00 |
$14,351.77 |
