On January 1, a company agrees to pay $12,000 in eight years. If the annual interest rate is 4%, determine how much cash the company can borrow with this agreement.
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On January 1, a company agrees to pay $12,000 in eight years. If the annual interest rate is 4%, determine how much cash the company can borrow with this agreement. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places.)
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- On January 1, a company agrees to pay $28,000 in nine years. If the annual interest rate is 3%, determine how much cash the company can borrow with this agreement. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places.)On January 1, a company agrees to pay $14,000 in three years. If the annual interest rate is 9%, determine how much cash the company can borrow with this agreement. (PV of $1. EV of $1. PVA of $1. and FVA of $1) (Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places.) Future Value Table Factor Amount BorrowedOn January 1, a company agrees to pay $29,000 in ten years. If the annual interest rate is 7%, determine how much cash the company can borrow with this agreement. (PV of $1, FV of $1, PVA of $1, and FVA of $1) Note: Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places. Future Value $ 29,000 Table Factor ...... 11 Amount Borrowed
- On January 1, a company agrees to pay $22,000 in eight years. If the annual interest rate is 6%, determine how much cash the company can borrow with this agreement. (PV of $1. EV of $1. PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places.) Future Value 22.000 Table Factor Amount BorrowedOn January 1, a company agrees to pay $13,000 in six years. If the annual interest rate is 2%, determine how much cash the company. can borrow with this agreement. (PV of $1. EV of $1. PVA of $1, and EVA of $1) Note: Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places. Future Value Table Factor Amount BorrowedOn January 1, a company agrees to pay $15,000 in six years. If the annual interest rate is 3% , determine how much cash the company can borrow with this agreement. (PV of $1. FV of $1. PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places.) Future Value 15,000 Table Factor 4 Amount Borrowed
- A company borrows $171,000 from a bank. The interest rate on the loan is 6 percent compounded semiannualy. The company agrees to repay the loan in equal semiannualy installments over the next five years. The first payment is to be made six months from now. (Use factor table in Appendix B for calculation) Required 1: What is the amount of each semiannual payment? $ Required 2: In the first payment, what is the amount of interest cancelled? $ Required 3: In the fifth payment, what is the amount of loan paid net of interest? $ Required 4: In the last payment, what is the amount of interest cancelled? $ Required 5: Assume the debt contract has the option to make one extraordinary payment of up to 20% of the principal. If the company decides to exercise the right and make the extra payment together with the 8th payment, how much it must pay in dollars at the 9th payment to pay off the loan? $A company borrows $126,500 from a bank. The interest rate on the loan is 10 percent compounded semiannualy. The company agrees to repay the loan in equal semiannualy installments over the next 10 years. The first payment is to be made six months from now. (Use factor table in Appendix B for calculation) Required 1: What is the amount of each semiannual payment? $ Required 2: In the first payment, what is the amount of principal cancelled? $ Required 3: In the second payment, what is the amount of interest paid? $ Required 4: In the last payment, what is the amount of the last payment to cancel the loan? $ Required 5: Assume the debt contract has the option to make one extraordinary payment of up to 25% of the principal. If the company decides to exercise the right and make the extra payment together with the 18th payment, how much it must pay in dollars at the 18th payment to pay off the loan? $ Required 6: What is the amount reported in the annual audited balance sheet for…On January 1, a company agrees to pay $20,000 in three years. If the annual interest rate is 10%, determine how much cash the company can borrow with this agreement.
- Assume that Sonic Foundry Corporation has a contractual debt outstanding. Sonic has available two means of settlement. It can either make immediate payment of $2,673,000, or it can make annual payments of $347,100 for 15 years, each payment due on the last day of the year. Click here to view factor tables. Which method of payment do you recommend, assuming an expected effective interest rate of 10% during the future period? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Present value of annual payments Recommended payment method Annual Payments 44Compute the amount that can be borrowed under each of the following circumstances: (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your "Table value" to 4 decimal places.) 1. A promise to repay $92,000 nine years from now at an interest rate of 8%. 2. An agreement to make three separate annual payments of $29,000, with the first payment occurring 1 year from now. The annual Interest rate is 7%. Option 1 Loan amount Option 2 Annual payments Table Value Table Value Amount Amount Present Value Present Valuedelta corporation obtained a $45, 000 loan at a rate of prime +1.15% on July 18. Fixed payments of $3500 are due on the 25th of each month, beginning August 25. The prime rate was 3.85% on july 18 and rose to 4% on september 6. What is the outstanding loan balance immediately after the september 25th payment?(use 365 days a year. Do not round immediate calculations. Round your final answer to 2 decimal places.)