A local business received a $45,000 loan at 4.0 compounded semi-annually. The business sett oan with monthly payments of $875. a. How many payments are required to settle t Round up to the nearest whole payment.

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 21MC: A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an...
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A local business received a $45,000 loan at 4.00%
compounded semi-annually. The business settled the
loan with monthly payments of $875.
a. How many payments are required to settle the loan?
Round up to the nearest whole payment.
57
56
55
58
b. What was the interest portion of payment 19?
$104.31
$101.03
$108.16
$95.67
c. What was the size of the final payment?
$400.50
$407.97
$404.87
$395.79
Transcribed Image Text:A local business received a $45,000 loan at 4.00% compounded semi-annually. The business settled the loan with monthly payments of $875. a. How many payments are required to settle the loan? Round up to the nearest whole payment. 57 56 55 58 b. What was the interest portion of payment 19? $104.31 $101.03 $108.16 $95.67 c. What was the size of the final payment? $400.50 $407.97 $404.87 $395.79
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