Blackstone Company purchased a new software system costing $35,000. Tofinance the purchase, Blackstone signed a contract agreeing to pay the costover the next 8 years, with a payment due every six months; the first paymentwill be made six months from the date of purchase. Blackstone's usual interestrate is 10%. What is the amount of the payment required (rounded to thenearest dollar)?'s usual096, What is the amount of theSelect one:O a. 16,030O b. 6,560O c. 3,229d. 2,575e. None of the above

Calculate requirement payment amount:Principal = PR = rate of interest (10% / 2) => 5%N = number…

Answered: Blackstone Company purchased a new…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 8MC: Grummet Company is acquiring a new wood lathe with a cash purchase price of $80,000. The Wood Master...

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Contracting company plans to update its equipment so that its trucks are replaced after five years from now. The estimated cost required for so is ($ 200,000). The company plans to pay only (20%) from the amount directly, and borrow the rest. The company decided to deposits an annually uniform series during those five years to provide the amount to be paid directly. What is the amount of payment that annually paid? If the interest rate is (7%).
General Computers Inc. purchased a computer server for $60,500. It paid 45.00% of the value as a down payment and received a loan for the balance at 9.00% compounded semi-annually. It made payments of $2,100.12 at the end of every quarter to settle the loan. a. How many payments are required to settle the loan? Round up to the next payment
LEW Company purchased a machine at a price of $100,000 by signing a note payable, which requires a single payment of $123,210 in 2 years. Assuming annual compounding of interest, what rate of interest is being paid on the loan?
We will use Excel PMT function to calculate the payment Rand then create an amortization schedule for the problem below: The Turners have purchased a house for $250,000. They made an initial down payment of $50,000 and secured a mortgage with interest charged at the rate of 6%/year on the unpaid balance . Interest computations are made at the end of each month . Assume that the loan is amortized over 15 years . Determine the size of each installment such that the loan is amortized at the end of the term Type the raw data of P, r, m, t into cells Calculate i by its definition Calculate n by its definition Calculate R by Excel function PMT. Note : please reference in PMT What will be their total interest payment ?
The Planet Express spaceship was retrofitted with a new dark matter drive for $4,500,000. The company paid 20% down and financed the remaining amount 5 years at 6% APR. The monthly loan payment is exactly $69,600. At the end-of-month 2, the interest portion of the payment is |and the principal portion is The remaining loan balance at end-of-month 2 is Express all values to the penny.
General Computers Inc. Purchased a computer server for $72,000. It paid 30.00% of the value as a down payment and received a loan for the balance at 7.50 compounded semi annually. It made payments of $2,650.32 at the end of every quarter to settle the loan. A. How many payments are required to settle the loan? compounded
A company buys a machine for $18,000, which it agrees to pay for in five equal annual payments, beginning one year after the date of purchase, at an annual interest rate of 7%. Immediately after the second payment, the terms of the agreement are changed to allow the balance due to be paid off in a single payment the next year. What is the final single payment? Solution: 1. Draw the CFD by yourself; 2. First, calculate annual payment amount for the first 2 years: O A= + 7%, • )=18000x =$ o The final payment is the • worth of the : unpaid payments. 3. Second, Calculate the single payment amount due at the end of the 3rd year: F=S
General Computers Inc. purchased a computer server for $70,000. It paid 35.00% of the value as a down payment and received a loan for the balance at 4.50% compounded semi-annually. It made payments of $2,850.75 at the end of every quarter to settle the loan. a. How many payments are required to settle the loan? payments Round up to the next payment b. Fill in the partial amortization schedule for the loan, rounding your answers to two Question 3 of 7 b. Fill in the partial amortization schedule for the loan, rounding your answers to two decimal places. Payment Number 0 1 2 Payment Interest Portion Principal Portion Principal Balance $45,500.00 11
Valles Galactic Industries is Equipment is financing some equipment purchases. They anticipate a life of 10 years with monthly payments. The arrangement with the vendor worked out is as below. The interest rate is % % per month for the first 48 payments and for the remainder of the loan the interest rate would be 1 % per month. The equipment cost $500,000. What is the monthly payment for the first 48 months?
General Computers Inc. purchased a computer server for $57,500. It paid 35.00% of the value as a down payment and received a loan for the balance at 10.50% compounded semi-annually. It made payments of $2,450.35 at the end of every quarter to settle the loan. a. How many payments are required to settle the loan? 0 payments Round up to the next payment b. Fill in the partial amortization schedule for the loan, rounding your answers to two decimal places. Payment Number Payment Interest Portion Principal Portion Principal Balance 0 $37,375.00 1 $0.00 $0.00 $0.00 $0.00 2 $0.00 $0.00 $0.00 $0.00 : : : : : :
A firm purchased heavy cable and 4 inch conduit on credit and agreed to pay 10% interest rate per annum. Purchases are made in October for cable costing $756.80 and in December for conduit costing $1,325.25. If full payment is made by March 1st of the following year, how much is paid? (Charge interest for the full month of purchase)
A provider of cell phone service leases the rights to use 25 cell towers and makes payments of $200,000 at the beginning of each month for 5 years at an interest rate of 3.25% compounded monthly. Find the present value (in dollars) of the payments. (Round your answer to the nearest cent. See Example 6 in this section.)

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