Answered: 5. How much interest must be paid on a…

5. How much interest must be paid on a loan of $4300 at 10% compounded semi- annually for 4 years? A) $926.68 B) $1995.63 C) $2053.06 D) $4917.43

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: You borrowed $660,000 in your mortgage to purchase a property. The mortgage requires equal annual…

A: Annual payments can be calculated by using the Excel formula ''=PMT''Note : PMT refers to…

Q: 10) Compute the simple interest and final amount of each loan Principal Rate Time A P 400 7% 1 year…

A: Simple interest is that amount of interest which is being charged on the principal amount for the…

Q: You borrow $11,000 over a 5-year term. The loan is structured as an amortized loan with annual…

A: Loan installment is that which is paid by borrower to lender for a specified period of time. This…

Q: What is the annual interest rate if a simple interest loan of $10,000 for 4 years charges a total of…

A: We need to use simple interest formula to solve this question Simple interest =Principal×Rate×Time

Q: Question 12 Common information: A loan is amortized by level payments made at the end of each…

A: The amortization schedule refers to the breakdown of the periodic payments into interest and…

Q: What is the difference in interest paid between a 30-year mortgage loan and a 15-year mortgage loan…

A: Interest: It represents the monetary charge on the amount borrowed by the borrower from the lender.…

Q: (1) The total amount of a loan to which interest has been added is P 200,000. The term of the loan…

A: Data given: Total interest = P200,000 t=4.5 years Simple interest = 6% Formula for simple interest…

Q: The monthly payments on a 15-year loan of $20,000 at 6.8% interest are $177.54. (a) What is the…

A: Ordinary annuity is when the PMTs are made at the end of the period.

Q: 7 - What is the total amount of money to be repaid at the end of 10 years for a loan of 200 000 lira…

A: In this question we need to compute the Future value of the loan taken today worth 200000 lira

Q: the interest rate on a loan charging $748 simple interest on a principal of $2750 after 8 years. 3.…

A: In this we need to use simple interest rate formula.

Q: a-1 mortage makes loans with the interest charged on the loan principle rather than on the unpaid…

A: Equal Annual Payment: $2,052.19Explanation:We are givenPrincipal amount (P): $10,000Annual interest…

Q: ______5. Compounding quarterly means the interest period is A. every year C. every 6 months B.…

A: Since you have posted multiple questions, we will answer the first one for you. If you want a…

Q: 1. A P3000 loan was originally made at 8% simple interest for 4 years. At the end of this period the…

A: Simple interest is a straightforward method of calculating how much money you owe on a loan. To…

Q: How much is the compensating balance if you need to borrow $350,000 for one year with 9% single…

A: The compensating balance is the extra amount that needs to be maintained at all times above the…

Q: Assume a $620,000 loan over a 20 year period at a fixed rate of 5.85%. How much would a borrower…

A: Loan amount "PV" = $620000 Annual rate = 5.85% Monthly rate "r" = 5.85%/12 NUmber of years = 20…

Q: What is the quarterly payment on a loan of $22,000 for 5 years at i= 8% per year, compounded…

A: Mortgage/ Borrowings: Borrowings are the loan which is taken by the individual to meet its…

Q: What is the APR for a fed ra

A: APR means annual percentage rate. APR means the borrowing cost incurred by the borrower for a…

Q: A $135 000 mortgage is amortized by making monthly payments of $974.37. If interest is 4.92%…

A: Since interest rate is compounded semiannually, first we need to calculate monthly mortgage rate by…

Q: You owe $1985.00 and $1794.00 in 5 months from now and 9 months from now respectively. What single…

A: Information Provided: Amount owed for 5 months = $1985 Amount owed for 9 months = $1794 Annual…

Q: Jaspreet received a 15 year loan of $300,000 to purchase a house. The interest rate on the loan was…

A: Monthly payment refers to an amount that is paid every month for the repayment of a loan amount…

Q: What is the difference on the total interest payments between a 25 year 5.65% fixed rate fully…

A: The objective of the question is to find the difference in total interest payments between a 25-year…

Q: Find the compound amount and interest on 6,100 for 4 years and 3 months at 6% compounded quarterly.

A: The future value is the amount that will be received at the end of a certain period. In simple…

Q: 4. Draw a CFD for P10,501 being loaned out at an interest rate of 12% per year over a period of 6…

A: Principal; P= P10,501 Interest rate; R=12% Time period; T= 6 years

Q: Question 2: A debt of $24,000 is repaid by quarterly payments of $1,100. If interest is 6.0%…

A: Approach to solving the question: Detailed explanation: Examples: Key references:

Q: An interest problem: Suppose $1000 is invested in an account paying interest at a continuous rate of…

A: The accumulated value after one year with given continuous rate is calculated below:

Q: A. How much is the amount of the loan? B. How much is the payment on the first period? C. For the…

A: The amount of the loan is the stated loan amount. The interest component can be calculated by…

Q: $13,376.39 was the interest earned on lending $94,600.00 for 7 years, what was the quarterly…

A: In compounding there is interest on interest including the principal amount and more is compounding…

Q: An installment loan for $18,000 has terms such that monthly payments of $180 are made for 10 years.…

A: Workings:- Time Period of Payments(in years) = 10 years Time Period of Payments(in months) = 10*12…

Q: 1. A $200 loan is offered with an annual simple interest rate of 6 percent. How much would the…

A: Amount payable = Loan *(1+ interest rate* time period)

Q: A fully amortizing mortgage loan is made for $100,000 for 15 years. The interest rate is 6 percent…

A: Loan installment is that which is paid by borrower to lender for a specified period of time. This…

Q: We take a 10-year mortgage for $300,000 at 7.75% p.a. It is to be repaid in monthly repayments.…

A: Repayment amount refers to the amount that is paid on a periodic basis for the repayment of loan…

Q: A borrower obtains a fully amortizing CPM loan for $125,000 at 6 percent interest for 10 years.…

A: Monthly Payment is the payment that is to be paid monthly for a specific period of time to repay the…

Q: What is the effective annual interest rate on the loan? Car purchased for $29,000 with a 5 year loan…

A: Compound = n = Monthly = 12Interest Rate = r = 9%

Q: klp.1

A: The objective of the question is to find the nominal interest rate charged on a loan that was…

Q: What is the total amount of money to be paid back at the end of 3 years for a loan of 200 000 lira…

A: Using excel FV function

Q: If someone borrow $4000 with interest rate 4% and has to return the loan with equal payment in 4…

A: loan repayments are usually monthly EMIs or annual payments. It consists of interest and principal…

Q: A loan was made 5 years ago for $376770 at 4% for a 21 year term. Rates are currently 9%. What is…

A: Loan refers to an amount being financed by the lender to the borrower at some fixed rate of interest…

Q: The monthly payments on a 20-year loan of $25,000 at 6.8% interest are $190.83. (a) What is the…

A: Present value of annuity is the current value of the future payments that are calculated using the…

Q: A LOAN OF P80,000 IS MADE FOR A PERIOD OF 18 MONTHS AT A SIMPLE INTEREST RATE OF 10%. WHAT DUE AT…

A: Loan amount = P80,000 Annual interest rate = 0.10 or 10% Annual period = 1.5 (i.e. 18 / 12) Amount…

Q: What will be the compounded amount on a loan of P1.500 at 12% interest compounded quarterly for I…

A: Loan amount (PV) = P 1500 Annual interest rate = 12% Quarterly interest rate (R) = 12%/4 = 3% Period…

Q: FRM. (Term=30 years, Note Rate = 5.25, Loan Amount = 800,000, Points=2) What is the FTL annual…

A: Time period is 30 years Loan amount is 800,000 Points =2 To Find: Annual percentage rate

Q: 3) A 20 year loan of $12,000 is repaid with annual payments of $750 at the beginning of each year.…

A: The true interest rate attached to an investment or loan is described by the effective annual…

Q: onsider a loan at 4.125% APR on 6 years for a $23,000 car a. Estimate the monthly payment (using…

A: Equated Monthly Installments are one part of the equally divided monthly outgoes to clear off an…

Q: What is the total interest paid on a loan of $5,000 at APR = 6% for 3 years

A: Compound interest is the interest on a loan or deposit calculated based on both the initial…

Q: What is the total interest paid on a loan of $5,000 at APR = 6% for 5 years.

A: Compound Interest = P(1+r/n)^nt - PWhere P = Principal = $5,000R = Rate on interest = 6%N = number…

Q: 19. What is the monthly payment on a $5M loan amortized over 25 years at 5%?

A: Financial Management: Financial management comprises of two words i.e. Finance and management.…

Question

5. How much interest must be paid on a loan of $4300 at 10% compounded semi-
annually for 4 years?
A) $926.68
B) $1995.63
C) $2053.06
D) $4917.43

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

A man owes P50,000.00 with interest at 9% payable semi-annually. What equal payments at the beginning of each 6 months for 8 years will discharge his debt? O a. P4,529.11 O b. P4,295.11 O c. P4,259.11 O d. P4,359.11
How is this wrong?
13 - What is the total amount of money to be paid back at the end of 3 years for the loan of 175 000 lira withdrawn from the bank for housing need with an annual compound interest of 15%?A) 270 700B) 267 500C) 266 153D) 264 175E) 269 125
Vijay
If you borrow $100,000 at an annual interest rate of 10% for six years, what is the annual payment (prior to maturity) on a fully amortized loan? 14 Your choice: 14/15 Qs A: $0.00 B: $10,000.00 C: $16,666.67 D: $22960.74
Question No :-1 You have an annual installment loan of Rs.150,000 from ABC bank for 5 years. If the loan requires an annual interest rate of 5% and the installments are to be paid at the beginning of each year, prepare a detailed breakup about the loan repayment indicating for the beginning of each year, the annual installment, the interest paid, the principal repaid and the remaining principal?
1 - What is the total interest/profit share amount to be repaid at the end of 7 years for a loan of 175,000 TL drawn from the bank for housing needs with a compound interest of 15% per year?A) 293 305B) 292 020C) 294 704D) 291 801E) 290 503
12. i) Calculate the amount received from a loan that charges interest in advance by 4% and must be repaid by P2000 at the end of three years. ii) If the present value in problem i is of P1778, what is the compound rate of interest in advance applied?
Quarter-end payments of $1,490 are made for 8 years to settle a loan of $31,880. What is the effective interest rate charged on this loan?
Determine the monthly payment for the installment loan. Use the installment payment formula m = 1- Amount Financed (P) $1,440 O A. $179.15 B. $35.15 O C. $125.26 O D. $366.02 P n 1+) - not Annual Percentage Rate (r) 8% Number of Payments per Year (n) 12 Time in Years (t) 4
A $345 000.00 mortgage is repaid in 19 years by making monthly payments of $ 2486.44. What is the nominal annual rate of interest compounded semi-annually?
A5 A 12-year loan is repaid with annual payments at the end of each year. For the first four years, each payment is X; for the next four years, each payment is 3X; for the final four years each payment is 2X. The amount of interest due in the fifth payment is twice as much as the interest due in the 9th payment. Find i, the (non-zero) annual effective interest rate, rounded to two decimal places after converting to a percentage. Please solve using steps and definitions, not Excel spread sheet.