Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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1. Construct a partial amortization schedule showing the last 2 payments.
PMT Setting N I/Y P/Y C/Y PV PMT FV
Payment NumberPaymentInterest PaidPrincipal RepaidOutstanding Principal
2. Determine the total amount paid to settle the loan. Show work, not just the answer.
3. Determine the total principal repaid.
4. Determine the total amount of interest paid. Show work, not just the answer.
Transcribed Image Text:Cloverdale Nurseries obtained a $60,000 loan at 8% compounded quarterly
to build an additional greenhouse. Monthly payments of $1060 were made
to settle the loan.
1. Construct a partial amortization schedule showing the last 2 payments.
2. Determine the total amount paid to settle the loan. Show work, not
just the answer.
3. Determine the total principal repaid.
4. Determine the total amount of interest paid. Show work, not just the
answer.
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1. Construct a partial amortization schedule showing the last 2
payments.
PMT
Setting
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- a) Based on your prepared amortization schedule for Concert Time Again, Inc term loan, what is the remaining loan balance after the 4th payment AND which financial statement would that amount appear on? Type the financial statement in the text box below and write the Dollar Amount on your PDF upload Financial Statement b) Based on your prepared amortization schedule, what is the interest expense for this loan after the 4th payment AND which financial statement would this appear on? Assume the first 4 payments are in the same accounting period that is presented on the financial statement. Type the financial statement in the text box below and write the Dollar Amount on your PDF upload Financial Statement c) What will the loan balance be after the 60th payment? $arrow_forwardAn amortized loan: repays both the principal and the interest in one lump sum at the end of the loan term. requires the principal amount to be repaid in even increments over the life of the loan. requires that all payments be equal in amount and include both principal and interest. requires that all interest be repaid on a monthly basis while the principal is repaid at the end of the loan term. may have equal or increasing amounts applied to the principal from each loan payment.arrow_forwardWhich of the following statements correctly describes aspects of simple interest as discussed in lectures? Group of answer choices A) With simple interest, the future value of any cash flow is simply its current value discounted back at a rate of r% per period for n periods. B) None of the other statements are correct C) A loan that has been created that pays simple interest, will involve interest payments that are calculated on the basis of both the principal amount borrowed as well as any interest that has accumulated to date. D) By convention, simple interest is the main method used for the pricing of long-term bonds. E) More than one of the other statements are correctarrow_forward
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