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Match the terms to the correct definition.

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Wize University Introduction to Finance Textbook > Time Value of Money

Amortized (Instalment) Loan

6 Activities

Match the terms to the correct definition.
A.
a loan used to buy real assets
B.
amount of time the interest rate will remain the same
C.
the amount owed
D.
amount of time borrower has to repay the loan
E.
interest rate per year without considering compounding
F.
the amount of a payment that will be kept by the borrower
G.
interest rate per period taking into account compounding
H.
the amount of a payment that will go towards reducing the debt
mortgage term
amortization period
APR
effective rate
interest portion
principal portion
balance
mortgage
More Amortized (Instalment) Loan Questions:
Which of the following statements is true about Canadian mortgages?
Which of the following statements if false?
Homework Problem #6
Mary purchased a condo in Laval 5 years ago. At the time she was given 5-year fixed rate mortgage with an APR of 4% and an amortization period of 30 years. She is renewing her mortgage today and rates have dropped to 1.2%. What fraction of her 17th payment on the new mortgage will go towards reducing her debt?
You just borrowed $40,000 to go on vacation. The loan carries an 8% interest rate compounded semi-annually. You will make weekly payments for 3 years.
How much is your weekly payment?
You just borrowed $20,000 to buy a car. The loan carries a 7.5% interest rate compounded monthly. You will make monthly mortgage payments for 5 years.
How much is your monthly payment?
You just borrowed $50,000 to renovate your home. The terms of the loan are:
APR: 5% compounded monthly
5 years
You've just been approved for a mortgage to buy your first home in Montreal, Canada. The purchase price of the home is $760,000 and you plan to make a 20% down payment. The term of the mortgage is 5 years and carries a 1.99% interest rate. The amortization period on the mortgage is 30 years. How much will you owe at the end of the first mortgage term?
Round your work to at least 4 decimal places and your final answer to 2 decimal places.
You just purchased a car for $149,000. The car is financed over 8 years at an APR of 2.99%, compounded monthly. How much was your down payment if your monthly payment is $1,500?
Round your final answer to 2 decimal places
You are taking a mortgage to purchase a condo, the mortgage is quoted at 3% interest compounded semi-annually. The term of the mortgage is 4 years and the amortization period is 25 years. What fraction of your 17th monthly payment will go towards repaying the principal on the mortgage?
Enter your answer as a percentage but omit the symbol. For example, enter 7.44 for 7.44%.
What is the monthly payment on the following car loan:
$50,000 principal
6 year term
What is the appropriate monthly interest rate to use to calculate the payment on the following car loan:
$50,000 principal
6 year term
Bob took out a mortgage to buy a house in Brossard, Quebec. The purchase price of the home is $1,000,000 and Bob will put a 20% down payment and finance the rest. The term of the mortgage is 4-years and it is a fixed rate mortgage with an APR of 6.5%. The amortization period on the mortgage is 30 years.
Bob took out a mortgage to buy a house in Brossard, Quebec. The purchase price of the home is $1,200,000 and Bob will put a 10% down payment and finance the rest. The term of the mortgage is 5 years and it is a fixed rate mortgage with an APR of 4%. The amortization period on the mortgage is 30 years.