A loan is being repaid by quarterly installments of $1,500 at the end of each quarter at a nominal interestrate of 10% convertible quarterly. If the loan balance at the end of the first year (right after the fourthpayment) is $12,000, compute the original loan balance.

The problem is asking us to find the original loan balance. We know that the loan is being repaid by…

Answered: A loan is being repaid by quarterly…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter5: Introduction To Business Expenses

Section: Chapter Questions

Problem 61P

See similar textbooks

Similar questions

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?
A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an annual interest rate of 11%. If 6 months have passed since note establishment, what would be the recorded interest figure at that time? A. $7,150 B. $65,000 C. $14,300 D. $2,383
The following information is given for a 60-month loan from a bank: Debt repayments are made at the end of each month.The annual effective interest rate for this loan is 12.682503%.The interest portion of the first installment is 300 TL. The remaining debt balance of this loan after the tenth payment is restructured with an annual effective interest rate of 11%. Calculate the new installment payments accordingly.
A loan of $92,800.00 is repaid by equal payments made at the end of every three months for 3 years. If interest is 8% compounded quarterly, find the size of the quarterly payments and construct an amortization schedule showing the payment number, amount paid, interest paid, principal repaid and outstanding principal balance of each payment. Additionally, include the totals for amount paid, interest paid and principal repaid of the loan.
A loan of $1,000 is made at an interest rate of 11% compounded quarterly. The loan is to be repaid with three payments: $ 400 at the end of the first year, $ 600 at the end of the fifth year, and the balance at the end of the tenth year. Calculate the amount of the final payment. Final Payment
Create a loan repayment schedule for a loan of $30295 and payments of $8482 made annually. Assume a rate of interest of 6.13% per year compounded annually. What is the balance remaining after the second payment?
A loan company advertises that $100 borrowed for one year may be repaid by 12 monthly installments of $9.46. Assuming the difference between the amount repaid and the amount borrowed is interest only, what is the effective annual interest rate being charged?
A borrower takes out a 15-year loan for $65000 with equal end-of-month payments. The annual nominal interest rate of the loan is 12% convertible monthly. Immediately after the 60th payment is made, the remaining loan balance is reamortized. The maturity date of the loan remains unchanged, but the annual nominal interest rate of the loan is changed to 6% convertible monthly. Calculate the new endof-month payment.
A loan is amortized over five years with monthly payments at a nominal interest rate of 12% compounded monthly. The first payment is 1,000 and is to be paid one month from the date of the loan. Each succeeding monthly payment will be 1% lower than the prior payment. Calculate the outstanding loan balance immediately after the 20th payment is made.
a loan is amortized by level payments made at the end of each quarter for 25 years.Tge monthly rate is 1%.The principal in the 29th payment is 5580.Find the amount of interest in the 60th payment
A loan is being repaid with 20 payments of 1500 at the end of each year. Interest is calculated at an annual effective rate of 5% for the first 10 years and 4% thereafter. Find the OLB immediately after five payments have been made by both the prospective and the retrospective method.
SportZ has negotiated a loan of $25 000 with interest at 7.6% per annum, to be paid as month-end payments of $2200.00 over the next year. Construct a loan amortization schedule to answer the following questions. i. How much interest is paid over the first two months? ii. How much of the principal is paid by the end of the first two months? iti. How much interest is paid over the term of the loan? iv. What is the amount of the final payment?]

SEE MORE QUESTIONS

Recommended textbooks for you

CONCEPTS IN FED.TAX., 2020-W/ACCESS

Accounting

ISBN:

9780357110362

Author:

Murphy

Publisher:

CENGAGE L

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Pfin (with Mindtap, 1 Term Printed Access Card) (…

Finance

ISBN:

9780357033609

Author:

Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:

Cengage Learning

CONCEPTS IN FED.TAX., 2020-W/ACCESS

Accounting

ISBN:

9780357110362

Author:

Murphy

Publisher:

CENGAGE L

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Pfin (with Mindtap, 1 Term Printed Access Card) (…

Finance

ISBN:

9780357033609

Author:

Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:

Cengage Learning

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

Financial Accounting Intro Concepts Meth/Uses

Finance

ISBN:

9781285595047

Author:

Weil

Publisher:

Cengage

SEE MORE TEXTBOOKS

A loan is being repaid by quarterly installments of $1,500 at the end of each quarter at a nominal interest rate of 10% convertible quarterly. If the loan balance at the end of the first year (right after the fourth payment) is $12,000, compute the original loan balance.