Purchasing a new spring training condominium


Problem:

On 10/1/05, Astros Co lends $350,000 to the company batting practice pitcher at an annual interst rate of 7.2%. This act of graciousness will allow the batting practice pitcher to purchase a new spring training condominium. Terms of the loan require the batting practice pitcher to repay Astros Co with two hundred (200) equal monthly payment, the first of which is to be made on 11-1-05.

Compute the:

1) interest factor (rounded to 5 places) used to compute the equal monthly payment

2) amount fo the equal monthly payment

3) total amount of interest collected by Astros Co over the 200 payments

4) balance of the loan immediately after receiving the 12th payment on 10/1/06

5) balance of the loan immediately after receiving the 180th payment on 10/1/20

6) total amount of interest earned by Astros Co between the dates 10/1/06 and 10/1/20

Solution Preview :

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Finance Basics: Purchasing a new spring training condominium
Reference No:- TGS01802499

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