The interest rate for the first five years of a $34,000 mortgage loan was 3.95% compounded semiannually. The monthly paymentscomputed for a 10-year amortization were rounded to the next higher $10. (Do not round intermediate calculations and round yourfinal answers to 2 decimal places.)a. Calculate the principal balance at the end of the first term.Principal balance$b. Upon renewal at 6.45% compounded semiannually, monthly payments were calculated for a five-year amortization and againrounded up to the next $10. What will be the amount of the last payment?Final payment$

Amortization is a financial concept that refers to the process of spreading the repayment of a loan…

Answered: The interest rate for the first five…

Foundations of Business - Standalone book (MindTap Course List)

4th Edition

ISBN:9781285193946

Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor

Publisher:William M. Pride, Robert J. Hughes, Jack R. Kapoor

Chapter15: Using Management And Accounting Information

Section: Chapter Questions

Problem 5DQ

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During the audit of Albert Eistein, what relevant assertion should be used to record loans receivable net of an allowance for loan losses when allowance should adequately cover any estimated losses inherent in the loan portfolio but not excessive losses? a. Existence or occurrenceb. Valuation or allocationc. Cutoffd. Rights or obligations
One of your customers is delinquent on hisaccounts payable balance. You’ve mutually agreed to a repayment schedule of $700per month. You will charge 1.3 percent per month interest on the overdue balance. Ifthe current balance is $21,500, how long will it take for the account to be paid off ?
Which of the following statements describes the payment amounts over the life of an ARM? A) Payments will remain constant for the life of the loan. B) Payments may go up or down in relation to the index rate. C) Payments may go up or down in relation to the margin rate. D) Payments may go up or down in relation to the equity in the property.
You have recently won the super jackpot in the WashingtonState Lottery. On reading the fine print, you discover that you have the following twooptions:a. You will receive 31 annual payments of $250,000, with the first payment beingdelivered today. The income will be taxed at a rate of 28 percent. Taxes will bewithheld when the checks are issued.b. You will receive $530,000 now, and you will not have to pay taxes on this amount.In addition, beginning one year from today, you will receive $200,000 each yearfor 30 years. The cash flows from this annuity will be taxed at 28 percent.Using a discount rate of 7 percent, which option should you select?
You have deposited $10,800 into an account that will earn an interest rate of 8% compounded semiannually. How much will you have in this account at the end of 10 years? $16,564.89 $27,213.75 $23,664.13 $28,396.96
Please answer along with the excel formulas - 1. Sue now has $125. How much would she have after 8 years if she leaves it invested at 8.5% with annual compounding? $205.83 $216.67 $228.07 $240.08 $252.08 2. Suppose you have $1,500 and plan to purchase a 5-year certificate of deposit (CD) that pays 3.5% interest, compounded annually. How much will you have when the CD matures? $1,781.53 $1,870.61 $1,964.14 $2,062.34 $2,165.46 3. Last year Rocco Corporation's sales were $225 million. If sales grow at 6% per year, how large (in millions) will they be 5 years later? $271.74 $286.05 $301.10 $316.16 $331.96
Sonia wich to esatablish a trust fund from which her son can withdraw $6,000 every six months for 15 years, when he reach 16 years old. At the end of which time he wil recevie the remaining money in the trust, which you would like to be $25,000. The trust will be invested at 6% per annum componded semi-annually. How large should the trust be?
You work as a freelance accounting professional and have beenrecently engaged by the auditors of Life-Positive Inc. for anassignment. In examining the company’s records, you have extractedthe following information Life-Positive’s Account Balances 2021 ($) 2022 ($) Accounts Payable 24,600.00 21,250.00 Accounts receivable 15,700.00 12,340.00 Cash 23,450.00 28,600.00 Cost of goods sold 19,700.00 23,000.00 Depreciation 3,090.00 4,590.00 Dividends 5,800.00 10,800.00 Interest 2,340.00 2,890.00 Inventory 7,050.00 8,640.00 Long-term debt 28,000.00 30,000.00 Net fixed assets 41,500.00 48,000.00 Other expenses 2,400.00 2,800.00 Sales…
Tara wishes to accumulate $25,000 in 5 years. Use the appropriate formula to find the sinking fund payment (in $) she would need to make at the end of each six months, at 4% interest compounded semiannually. (Round your answer to the nearest cent.)
Explain, why doesn't an estimated absolute covariance number tell the investor much about the relationship between the returns on the two assets.
Evaluate the following statements:S1. Any investment income of general borrowing is deducted from capitalizable borrowing cost.S2. If the asset is financed by specific borrowing but a portion is used for working capital purposes, the borrowing shall be treated as general borrowing in determining capitalizable borrowing cost. a.False, False b.False, True c.True, True d.True, False
uestion The company's bank won't lend it any more money than it already has, and investment bankers have said that debentures are out of the question. The treasurer has asked you to do some research and suggest a few ways in which bonds might be made attractive enough to allow the company to borrow. Explain how to secure the bonds with owned assets in great detial. In what ways does it make the bonds more attractive to allow the company to borrow?

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