Bronco Repairs borrowed $15 000 from National Credit Union at 10% compounded quarterly. The loan agreement requires payments of $2500 at the end of every three months. Construct an amortization schedule. Here we have to determine the number of payments required. Use of the TVM Worksheet determines a value of n 6.581682. This is interpreted as 6 payments of $2500 and a seventh payment of less than $2500.
Q: A loan in the amount of $280,000, is contracted over a period of 25 years to finance the purchase of…
A: Here,
Q: Moranex Corporation borrowed $75,000.00 at 8% compounded annually for 15 years to buy a warehouse.…
A: When we take a loan we pay equal periodic payments. Here the payments are being made annually. The…
Q: Halep Inc. borrowed $30,000 from Davis Bank and signed a 4-year note payable stating the interest…
A: An accounting technique that is used for the purpose of lowering the book value of a loan on a…
Q: XYZ Company has taken out a 5-years instalment loan of AED 100,000 at a nominal interest equal rate…
A: Given: Loan amount in AED 100,000 Nominal interest rate 12% Loan tenure in years 5 Payment…
Q: A company borrowed at 7.21% compounded annually to purchase equipment, agreeing to make payments of…
A: Time values tell that money received today is of more worth than that of receiving the exact amount…
Q: Zetix borrowed $20,000 on a one-year, 10 percent note payable from the local bank on March 1.…
A: Notes Payable: Noes payable is a liability account where borrower makes written promise to lender…
Q: The interest rate on a $6400 loan is 7% compounded semi-annually, and the loan is to be repaid by…
A: Here, To Find: Number of months required to settle the loan =? Amortization schedule =? Total…
Q: A firm engaged a one-year, monthly pay, $100,000 line of credit at 6 percent plus a 0.25 percent…
A: Given information: Total credit : $100,000 Rate of interest : 6% Commitment fee : 0.25% 80% used in…
Q: To finance the development of a new product, a company borrowed $29,000 at 7% compounded monthly. If…
A: Compound Interest The type of interest that helps build wealth quickly is called compounding.…
Q: MMS Corp borrows $1,650,000 today for a new building. The loan is an equal principal payment loan…
A: Computation of payment due amount:Hence, the due amount is $20,219.95 or $20,220.
Q: Joan Messineo borrowed $15,000 at a 14 percent annual interest rate to be repaid over three years.…
A: Installment is the amount of periodic payment a borrower has to make to its lender in order to repay…
Q: Lush Gardens Co. bought a new truck for $50,000. It paid $5,500 of this amount as a down payment and…
A: Present Value of Ordinary Annuity refers to a concept that determines the value of cash flows at…
Q: Glen Pool Club, Inc., has an installment loan outstanding with a current balance of $141,000. The…
A: Loan Outstanding =$ 141,000 Interest rate = 6% p.a 6% interest p.a. is given so one month's…
Q: Marpole Carpet Cleaning borrowed $7600 from Richmond Credit Union at 8% compounded quarterly. The…
A: Borrowed Amount = $7600 Rate of Interest(r) = 8% Compunded Quarterly =…
Q: A company financed the purchase of a machine with a loan at 4.25% compounded semi-annually. This…
A: Solution:- When a loan is taken, it can either be repaid as a lump sum payment or in installments.…
Q: Welland Fabricating borrowed $73,400 at 8% compounded quarterly to purchase a new piece of…
A: The final loan payment can be seen from an amortization schedule which shows the amount of loan…
Q: MMS Corp borrows $1,650,000 today for a new building. The loan is an equal principal payment loan…
A: Calculation of Interest Payment due in Month 16:The interest payment due in month 16 is…
Q: LEW Company purchased a machine at a price of $100,000 by signing a note payable, which requires a…
A: Present value factor at 2 year for $1 = Machine cost / Payment to be made = $100,000 / $123,210 =…
Q: General Computers Inc. purchased a computer server by taking a loan of $33,000 at 3.50% compounded…
A: Amount of loan “L”= $33,000 Rate = 3.5% compounded semi-annually Semi-annual rate “r” = 3.5%/2 =…
Q: Lush Gardens Co. bought a new truck for $70,000. It paid $7,000 of this amount as a down payment and…
A: Loan payback refers to the process of returning borrowed funds to the lending institution or…
Q: Aragon credit Union offers to lend Cassidy $35,000 to buy a car; the loan calls for payments of…
A: A concept that implies the future worth of the money is lower than its current value due to several…
Q: Compute the interest expense due each month. Show the journal entry to recognize the interest…
A: Introduction: A short-term notes payable is a promise to pay the amount of loan at a fixed rate…
Q: A $500,000 corporate loan is supposed to be repaid over 10 years in the amount of $15,227.80 at the…
A: The question explains that loan refinancing at the cheaper interest rate will reduce the regular…
Q: A factory operator bought a Diesel generator set for P1,000.000.00 and agreed to pay the supplier…
A: Note: It is assumed that the Price at which Diesel Generator was bought is P1,000,000 and…
Q: Donna makes annual end of year payments of $5,043.71 on a four year loan with an interest rate of 13…
A: Present Value = Annuity * {1- 1/ [(1+rate)^year] } / rate where, rate = 13% or say 0.13 year = 4…
Q: Schuyler Company wishes to purchase an asset costing $117,000. The full amount needed to finance the…
A: The term mortgage refers to a type of loan that is for the long term, and it usually has the asset…
Q: U.S. Fax has been granted a loan from a commercial finance company for $1 million at a stated…
A: Effective Cost of Debt(ECD) refers to the total amount that is paid by borrower to lender for taking…
Q: General Computers Inc. purchased a computer server by taking a loan of $36,500 at 3.50% compounded…
A: The loan has been amortized using the interest, the payment made each period must include the…
Q: On quesiton C: Johnson’s borrowed $282,000 at a(n) 9 percent annual interest rate on April 1 of the…
A: Adjusting entries are those journal entries which are passed at the end of accounting period in…
Q: A factory operator bought a diesel generator set for P 10,000.00 and agreed to pay the dealer…
A: Present Value of annuity refers to the present value of all the future payments of and series of…
Q: Messi borrowed GH¢ 150,000 from SOS Bank at 14% annual interest rate to be paid over three years.…
A:
Q: what percentage of the outstanding principal does the company pay in interest each month?
A: The correct answer is E) 0.66%
Q: Cranes Limited took a loan of $ 450,000 at 4% compounded monthly from its bank to train its…
A: When the loans are repaid in periodic instalments, each periodic instalment have 2 components i.e.…
Q: MMS Corp borrows $1,650,000 today for a new building. The loan is an equal principal payment loan…
A: Calculation of Current Portion of Debt in Month 16:The current portion of month debt 16 is…
Q: Towline Corporation borrowed $75,000.00 at 11% compounded monthly for 10 years to buy a warehouse…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: A contractor borrows $40,000 from a bank. According to the agreement between them, the contractor…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Olfert Inc. is repaying a loan of $52500.00 by making payments of $4700.00 at the end of every six…
A: Interest is the amount charged or received on amount invested or borrowed in the particular period.…
Q: a. What was the principal balance of the loan? $0.00 Round to the nearest cent b. What was the total…
A: Principal: It refers to the initial amount of loan or bond that must be paid with interest to the…
Q: General Computers Inc. purchased a computer server for $70,000. It paid 35.00% of the value as a…
A: Purchase of Computer Server = $70,000 Down payment = $24,500 (being 35% of $70,000) A loan is taken…
Q: Olfert Inc. is repaying a loan of $57500 by making payments of $4250 at the end of every six months…
A: Loan repayments in equal instalments at equal intervals of time is called an annuity. Initial…
Q: General Computers Inc. purchased a computer server by taking a loan of $35,000 at 4.50% compounded…
A: Amortization table is as follows-
Q: A design studio received a loan of $8,950 at 5.60% compounded semi-annually to purchase a camera. If…
A: Amount of loan is $8,950 Interest rate is 5.6% compounded semi-annually Time period is 2 years Total…
Q: To pay for remodeling, the company will take out a $500,000 five-year loan at 9.5% interest,…
A: Given data: Original Loan=$500,000 Annual Interest Rate=9.5% Loan duration (yrs)=5 Number of periods…
Q: B11 through E30. Column B contains the interest payment for each quarter, and column C contains the…
A: An amortization schedule (also known as an amortisation table) is a table that outlines each…
Q: Tricana Corporation borrowed $79,000.00 at 3% compounded quarterly for 8 years to buy a warehouse.…
A: The loan here is an amortized loan. An amortized loan is that loan in which interest is charged on…
Q: TNT Construction borrowed $150,000 at 7.26% compounded annually and signed a contract with the…
A: Solution:- When an amount is borrowed, the borrower has the option whether to repay it in lump sum…
Q: Halep Inc. borrowed $30,000 from Davis Bank and signed a 4-year note payable stating the interest…
A: working note: interest calculation: $30000 *4% = $1200 $22935.30 *4% = $917.41 $15588.01 *4%…
Q: On January 1, 2020, Sukuna Bank loaned 4,000,000 to Satori Company. The interest of the loan is 7%…
A: Initial measurement of loans receivables is Fair value plus transaction costs. Direct origination…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
- The payment necessary to amortize a 5.5% loan of $82,000 compounded annually, with 8 annual payments is $12,944.85. The total of the payments is $103,558.80 with a total interest payment of $21,558.80. The borrower ma larger payments of $13,000.00. Calculate (a) the time needed to pay off the loan, (b) the total amount of the paymen and (c) the amount of interest saved.Find the payment necessary to amortize a 5.5% loan of $7700 compounded semiannually, with 6 semiannual payments. Find (a) the payment necessary to amortize the loan and (b) the total payments and the total amount of interest paid based on the calculated semiannual payments. Then create an amortization table to find (C) the total payments and total amount of interest paid based upon the amortization table. a. The semiannual payment needed to amortize this loan is $ (Round to the nearest cent as needed.) b. The total amount of the payments is $ (Round to the nearest cent as needed.) The total amount of interest paid is $ (Round to the nearest cent as needed.) c. The total payment for this loan from the amortization table is $ %24 The total interest from the amortization table is $The payment necessary to amortize a 5.2% loan of $89,000 compounded annually, with 4 annual payments is $25,215.76. The total of the payments is $100,863.04 with a total interest payment of $11,863.04. The borrower made larger payments of $26,000.00. Calculate (a) the time needed to pay off the loan, (b) the total amount of the payments, and (c) the amount of interest saved. a. The time needed to pay off the loan with payments of $26,000.00 is (Round up to the nearest year.) years.
- The payment necessary to amortize a 5.7% loan of $97000 compounded annually, with 5 annual payments is $22,839.84. The total of the payments is $114,199.20 with a total interest payment of $17,199.20. The borrower made larger payments of $23,000.00. Calculate (a) the time needed to pay off the loan, (b) the total amount of the payments, and (c) the amount of interest saved. a. The time needed to pay off the loan with payments of $23,000.00 is _____ years. (Round up to the nearest year.) b. The total amount of the payments is $______ (Round to the nearest cent as needed.) c. The amount of interest saved is $______. (Round to the nearest cent as needed.)The payment necessary to amortize a 4.5% loan of $81,000 compounded annually, with 5 annual payments is $18,451.12. The total of the payments is $92,255.60 with a total interest payment of $11,255.60. The borrower made larger payments of $19,000.00. Calculate (a) the time needed to pay off the loan, (b) the total amount of the payments, and (c) the amount of interest saved. Thank you~the payment necessary to amortize a 4.8% loan of $81000 compounded annually with 7 annual payments is $13897. The total of the payments is $97279.77 with a total interest payment of $16279.77. The borrower made larger payments of $14000.00. Calculate (a) the time needed to pay off the loan, (b) the total amount of the payments, and (c) the amount of interest saved. Question content area bottom Part 1 a. The time needed to pay off the loan with payments of $14,000.00 is (Round up to the nearest year.) b. The total amount of the payments is $ (Round to the nearest cent as needed. c. The amount of interest saved is $ (Round to the nearest cent as needed.)
- The payment necessary to amortize a 4.3% loan of $83,000 compounded annually, with 8 annual payments is $12,480.98. The total of the payments is $99,847.84 with a total interest payment of $16,847.84. The borrower made larger payments of $13,000.00. Calculate (a) the time needed to pay off the loan, (b) the total amount of the payments, and (c) the amount of interest saved. XXX a. The time needed to pay off the loan with payments of $13,000.00 is years. (Round up to the nearest year.)A man loans $10,000, part at 6% annual interest and the rest at 11%. The annual total income from the loan is $625. Determine the following: The amount of each loan. Explain the concepts/principles that were considered and the factors that affected the condition of item (a)The payment necessary to amortize a 6.8% loan of $99,000 compounded annually, with 8 annual payments is $16,451.04. The total of the payments is $131,608.32 with a total interest payment of $32,608.32. The borrower made larger payments of $17,000.00. Calculate (a) the time needed to pay off the loan, (b) the total amount of the payments, and (c) the amount of interest saved. a. The time needed to pay off the loan with payments of $27,000 is __ years (round up to the nearest year) b. The total amount of the payment is $ ___ (round to the nearest cent as needed) c. The amount of interest saved is $ ___ (round to the nearest cent as needed)
- Leven Corporation negotiated a short-term loan of $685,000. The loan is due in 10 months and carries a 6.86 interest rate. Use simple interest to calculate the total amount of thetioan. If necessary, round the answer to the nearest cent.A $22,550 loan is to be settled by making payments of $6,862 at the end of every three months. The interest is 4.5% compounded semi-annually. a) Find the number of payments in the term. N Payment Number b) Fill in the missing values of the amortization schedule below. Round off your answers to two decimal places. Enter a positive value for all answers. 0 1 2 3 4 Payment Amount ($) PMT $ 6,862 $ 6,862 6,862 = 3.37 $ 2,531.51 x Interest Portion ($) INT $254.64 X $180.03 X $104.57 X $28.27 X Principal Portion ($) PRN GA X FA FA 6,607.36 x Loan Balance ($) BAL $ 15,942.6 x FA $22,550 FAConsider a loan of $7800 at 6.4% compounded semiannually, with 18 semiannual payments. Find the following (a) the payment necessary to amortize the loan (b) the total payments and the total amount of interest paid based on the calculated semiannual payments (c) the total payments and total amount of interest paid based upon an amortization table. (a) The semiannual payment needed to amortize this loan is $ (Round to the nearest cent as needed.) (b) The total amount of the payments is $ (Round to the nearest cent as needed.) The total amount of interest paid is $ (Round to the nearest cent as needed) (c) The total payment for this loan from the amortization table is $ (Round to the nearest cent as needed.) The total interest from the amortization table is $ (Round to the nearest cent as needed)