Original Problem from Chapter 4 , Problem 12 to go with Chapter 5 Problem 5 :
12 . Payments . Sam Hinds , a local dentist , is going to remodel the dental reception area and add two new workstations . He has contacted A-Dec , and the new equipment and cabinetry will cost $ 18,000 . A-Dec will finance the equipment purchase at 7.5 % over a six-year period . What will Hinds have to pay in annual payments for this equipment ?
Chapter 5 : Problem 7
7 . Future value with periodic rates . Matt Johnson delivers newspapers and is putting away $ 15.00 every month from his paper route collections . Matt is eight years old and will use the money when he goes to college in ten years . What will be the value of Matt ’ s account in ten years with his monthly payments if he is earning 6 % ( APR ), 8 % ( APR ), or 12 % ( APR )?
Chapter 5 : Advanced Problem 1a & 1b
1 . Monthly amortization schedule . Sherry and Sam want to purchase a condo at the coast . They will spend $ 650,000 on the condo and are taking out a loan for the whole amount for the condo for twenty years at 7.0 % interest .
a . What is the monthly payment on the mortgage ? Construct the amortization of the loan for the twenty years in a spreadsheet to show the interest cost , the principal reduction , and the ending balance each month .
b . Then change the amortization to reflect that after ten years , Sherry and Sam will increase their monthly payment to $ 7,500 per month . When will they fully repay the mortgage with this increased payment if