You borrow $50,000 for 5 years. This is an amortized load, meaning that payments are the same each month, and the loan is fully paid off with final payment. The quoted interest rate (or APR) is 12% per year. What is the beginning balance, Payment, Interest, Principal and Ending Balance in months 10 and 25? Enter all the necessary information in an Excel spreadsheet as the example in class, by entering the right formulas in each column. Also copy and paste the final table from Excel in a word document and attach it with your answer.

You borrow $50,000 for 5 years. This is an amortized load, meaning that payments are the same each month, and the loan is fully paid off with final payment. The quoted interest rate (or APR) is 12% per year. What is the beginning balance, Payment, Interest, Principal and Ending Balance in months 10 and 25? Enter all the necessary information in an Excel spreadsheet as the example in class, by entering the right formulas in each column. Also copy and paste the final table from Excel in a word document and attach it with your answer.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

ChapterM: Time Value Of Money Module

Section: Chapter Questions

Problem 11RE: Samuel Ames owes 20,000 to a friend. He wants to know how much he would have to pay if he paid the...

See similar textbooks

Similar questions

Find the interest earned on $5,750 deposited into a savings account for 3 1/2 years at an annual interest rate of 4 1/2% a. What formula should be used? b. What are you trying to find and what variable does it represent in the formula? c. Solve the problem showing all of your work (must show all steps!!) d. Interpet your answer using a complete sentence You may use the box below to upoload a picture of your written explanation or type it out in the box. Use the "mountain" button to add pictures.
How much would you need to deposit in an account each month in order to have $20,000 in the account in 9 years? Assume the account earns 6% interest. Submit Question .com/course/showcalendar.php?cid=179278 Q Search
A borrower has two alternatives for a loan: (1) issue a $630,000, 75-day, 6% note or (2) issue a $630,000, 75-day note that the creditor discounts at 6%. Assume a 360-day year. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. X Open spreadsheet a. Compute the amount of the interest expense for each option. Round your answer to the nearest dollar. for each alternative. b. Determine the proceeds received by the borrower in each situation. Round your answers to the nearest dollar. < (1) $630,000, 75-day, 6% interest-bearing note: $ (2) $630,000, 75-day note discounted at 6%: $ c. Alternative is more favorable to the borrower because the borrower
Given a loan amount P, an annual interest rate r, and the length of the loan in years, find the monthly payment R necessary to pay off the loan by completing parts a through c. Represent the number of monthly payments by n. Amount Rate Time $50,000 5% 20 years Question content area bottom Part 1 a. Calculate P1+r12n and call this number A. A=enter your response here (Round to two decimal places as needed.) Part 2 b. Calculate 1+r12n−1r12 and call this number B. B=enter your response here (Round to two decimal places as needed.) Part 3 c. Let R = AB. The monthly payment necessary to pay off the loan is R=$enter your response here. (Round up to the nearest cent.)
Suppose you borrow $14,000. The interest rate is 11%, and it requires 4 equal end-of-year payments. Set up an amortization schedule that shows the annual payments, interest payments, principal repayments, and beginning and ending loan balances. Round your answers to the nearest cent. If your answer is zero, enter "0". Beginning Repayment Ending Year Balance Payment Interest of Principal Balance 1 $ fill in the blank 60 $ fill in the blank 61 $ fill in the blank 62 $ fill in the blank 63 $ fill in the blank 64 2 $ fill in the blank 65 $ fill in the blank 66 $ fill in the blank 67 $ fill in the blank 68 $ fill in the blank 69 3 $ fill in the blank 70 $ fill in the blank 71 $ fill in the blank 72 $ fill in the blank 73 $ fill in the blank 74 4 $ fill in the blank 75 $ fill in the blank 76 $ fill in the blank 77 $ fill in the blank 78 $ fill in the blank 79
Suppose you want to have $600,000 for retirement in 25 years. Your account earns 4% interest. How muc would you need to deposit in the account each month? Submit Question /course/showcalendar.php?cid=179278 Search
Samuel Ames owes 20,000 to a friend. He wants to know how much he would have to pay if he paid the debt in 3 annual installments at the end of each year, which would include interest at 14%. Draw a time line for the problem. Indicate what table to use. Look up the table value and place it in a brief formula. Solve.
You borrowed an X amount of money from a local bank to be repaid over N months at an interest rate i (assume your own numbers for X, i, M). I need : (a) Create a table (using Excel) showing each month's interest in $ (I), principal repayment, and amount of principal remaining at the end of each month. (b) Suppose that you decided to pay out the remaining principal all at once after few monthly payments (< N), how much will you pay? Use the P /A relationship to answer this part and compare to the numbers in the table.
Your company is planning to borrow $1 million on a 5-year, 11%, annual payment, fully amortized term loan. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below. Open spreadsheet What fraction of the payment made at the end of the second year will represent repayment of principal? Do not round intermediate calculations. Round your answer to two decimal places. %
Tab Window Hélp sponse The balance of an interest-bearing account can be modeled by an exponential equation. For example, consider an initial deposit of $2000 at an annual interest rate of 6%. The interest earned each year is deposited into the account at the end of the year. A. Assuming that no withdrawals or deposits are made, write an equation that models the account balance after x years. Your answer B. What is the account balance at the end of the 10 years? Your answer C. Create a graph that shows the increase in the account balance over the next 20 years, including your initial deposit. Your answer D. Using the graph, estimate how many years it will take for the initial deposit to double. Your answer E. If you deposited $2000 in an account of this type, what would the account balance be when you are 45 years old assuming that you are 18 years of age right now?
Suppose you want to have $300,000 for retirement in 20 years. Your account earns 10% interest. How much would you need to deposit in the account each month? Submit Question ath.com/course/showcalendar.php?cid=179278 Q Search
Suppose you secure a home improvement loan in the amount of $5,000 from a local bank. The loan officer gives you the following loan terms:• Contract amount = $5,000• Contract period = 24 months• Annual percentage rate = 12%• Monthly installment = $235 .37Shown is the cash flow diagram for this loan. Construct the loan payment schedule by showing the remaining balance, interest payment, and principal payment at the end of each period over the life of the loan.