Your company borrows $300,000 from the investment bank for building upgrades. It agrees for a (5) years loan with annual payment of $45,000 for first four payments, and the final payment on the 5th year should be $170,000. Calculate the annual payment in the first four years, interest rate, and the final payment at year 5.|
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- If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?Using the information provided, what transaction represents the best application of the present value of an annuity due of $1? A. Falcon Products leases an office building for 8 years with annual lease payments of $100,000 to be made at the beginning of each year. B. Compass, Inc., signs a note of $32,000, which requires the company to pay back the principal plus interest in four years. C. Bahwat Company plans to deposit a lump sum of $100.000 for the construction of a solar farm In 4 years. D. NYC Industries leases a car for 4 yearly annual lease payments of $12,000, where payments are made at the end of each year.Suppose you wish to purchase heavy equipment machinery and a commercial bank will lend you $65,000 for the transaction. The loan will be amortized over 5 years and the nominal interest rate will be 8% payable monthly. Calculate the monthly payment and the annual percentage rate (EAR) of the loan to be amortized.
- Suppose you are thinking of availing a loan of P100,000 at Pag-ibig Funds for house repairs after typhoon Jolina. Interest is pegged at 14% compounded quarterly, and you intend to make equal quarterly payments to pay-off this loan in three years. Set-up an amortization schedule (table) to serve as your guide in tracking the payments made, interest paid, principal repaid and outstanding principal for each period.(b) The company is considering purchasing a new delivery truck for $1,200,000. The intention is to obtain a 5-year loan from their bank, at an interest rate of 9% per annum. Annual payments are expected to be made on the loan. Required:i. Calculate Micron Industries’ annual payment on this loan. ii. Prepare the 5-year Amortization Schedule for this loan, clearly showing the interest and principal payment annually.Click to see additional instructions To provide funding for a particular project, a company decides to go for a loan worth GHC 200,000. The loan is to be paid at an interest rate of 18% per year in six annual installments starting from the beginning of the second year. The size of the equal payment needed each year is GHS
- K Consider a loan of $88,000 at 4% compounded annually, with 12 annual payments. Find the following. (a) the payment necessary to amortize the loan (b) the total payments and the total amount of interest paid based on the calculated annual payments (c) the total payments and total amount of interest paid based upon an amortization table. (a) The annual payment needed to amortize this loan is $. (Round to the nearest cent as needed.) (b) The total amount of the payments is $. (Round to the nearest cent as needed.) The total amount of interest paid is $. (Round to the nearest cent as needed.) (c) The total payment for this loan from the amortization table is $. (Round to the nearest cent as needed.) The total interest from the amortization table is $. (Round to the nearest cent as needed.)ABC Inc. asked your company for a 7-year loan of $50,000. The repayment of the loan will be as follows: ABC will pay $5,000 at the end of Year 1, $10,000 at the end of Year 2, and $15,000 at the end of Year 3, and fixed unspecified cash flow (assume X) at the end of each of the following years (Year 4 through Year 7). Assuming 8% as an appropriate rate of return on low risk but an illiquid 7-year loan. Find out the cash flow that this investment must provide at the end of each of the final 4 years (year 4 to year 7), that is, find out the X?using excel do the following Create an amoritization schedule for a $1,000,000 loan that requires equal annual payments in each of the next 10 years. The annual rate is 6%. How much is the remaining loan balance after 5 years? Analyze the amount of each equal payment that goes towards interest and principal in each year. What do you notice?
- K Consider the following loan. Complete parts (a)-(c) below. An individual borrowed $65,000 at an APR of 5%, which will be paid off with monthly payments of $442 for 19 years. ... a. Identify the amount borrowed, the annual interest rate, the number of payments per year, the loan term, and the payment amount. The amount borrowed is $ %, the number of payments per year is the loan term is years, and the payment amount is $ the annual interest rate is "We will use Excel PMT function to calculate the payment Rand then create an amortization schedule for the problem below: The Turners have purchased a house for $250,000. They made an initial down payment of $50,000 and secured a mortgage with interest charged at the rate of 6%/year on the unpaid balance . Interest computations are made at the end of each month . Assume that the loan is amortized over 15 years . Determine the size of each installment such that the loan is amortized at the end of the term Type the raw data of P, r, m, t into cells Calculate i by its definition Calculate n by its definition Calculate R by Excel function PMT. Note : please reference in PMT What will be their total interest payment ?K Consider the following loan Complete parts (a)-(c) below. An individual borrowed $67,000 at an APR of 3%, which will be paid off with monthly payments of $372 for 20 years- a. Identify the amount borrowed, the annual interest rate, the number of payments per year, the loan term, and the payment amount The amount borrowed is $], the annual interest rate is 1%, the number of payments per year is the loan term is years, and the payment amount is $ b. How many total payments does the loan require? What is the total amount paid over the full term of the loan? There are payments toward the loan and the total amount paid is $ c. Of the total amount paid, what percentage is paid toward the principal and what percentage is paid for interest? The percentage paid toward the principal is% and the percentage paid for interest is% (Round to the nearest tenth as needed)