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![Exercise 5-18 (Algo) Solving for unknown annuity payment; installment notes [L05-9, 5-10]
Don James purchased a new automobile for $21,000. Don made a cash down payment of $5,250 and agreed to pay the remaining
balance in 30 monthly installments, beginning one month from the date of purchase. Financing is available at a 24% annual interest
rate. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
Required:
Calculate the amount of the required monthly payment. (Do not round intermediate calculations. Round your final answer to nearest
whole dollar amount.)
Monthly payment](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3e1bfd6a-3cb6-4031-858f-4ba8da8545b1%2F0bb1f0f5-4809-49fc-94e9-55a1fcc6b36c%2Fgyt56ue_processed.jpeg&w=3840&q=75)
Monthly Payment:
- It is the payment made by the borrower to the lender for taking a loan. These payments include both interest and principal payments.
Information Provided:
Purchase cost = $21,000
Down payment = $5250
Annual rate = 24%
No. of monthly payments = 30
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- Saved Prepare an amortization schedule for a five-year loan of $70,000. The interest rate is 9 percent per year, and the loan calls for equal annual payments. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Leave no cells blank - be certain to enter "O" wherever required.) Year Beginning Balance Total Payment Interest Payment Principal Payment Ending Balance 1 3 4. How much interest is paid in the third year? (Do not round intermediate-calculations 2. 5Problem #2: Installment Note Preferred Corporation purchases an asset and finances it with a note payable. Information regarding the transaction follows: YOU WILL NEED THE KIESO PRESENT VALUE TABLES FOR THIS PROBLEM. Cost of asset 450,000 450,000 12% 2 years 4 times per year Amount Financed Annual Interest Rate Installment loan term Payments are made USE PROBLEM #2 TO ANSWER QUESTIONS 8 THRU 10 BELOW 8.) Calculate the periodic payment on the note payable. 9.) What is the total amount of interest that will be paid on the note payable over the two year period? 10.) If the company wishes to get the loan paid off in ONE year instead what will the new quarterly payments be?You borrow money on a self liquidating installment loan (equal payments at the end of each year, each payment is part principal part interest) Loan amount $989,000 Interest Rate 11.7% Life 48 years Date of Loan January 1, 2021 Use the installment method - not straight lineDo NOT round any interrmediate numbers.Do NOT turn this into a monthly problem.Do NOT put in minus signs, answer all positive numbers. Required: 1. What is the annual payment (round to the nearest $)? $ 2. What are the total interest payments (round to the nearest $)? $ 3. After 26 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)? % 4. After 26 payments have been made, what percentage of the total principal has been paid (round to the nearest percentage point)? % Redo the problem if the interest rate is 2%(for a well designed spreadsheet this should take 30 seconds) Required: 5. What is the annual payment (round to the nearest…
- Accounting You borrow money on a self-liquidating installment loan (equal payments at the end of each year, each payment is part principal part interest) Loan amount $479,000 Interest Rate 17.2% Life 43 years Date of Loan January 1, 2021 Use the installment method - not straight lineDo NOT round any intermediate numbers.Do NOT turn this into a monthly problem.Do NOT put in minus signs, answer all positive numbers. Required: 1. What is the annual payment (round to the nearest $)? $ 2. What are the total interest payments (round to the nearest $)? $ 3. After 16 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)? % 4. After 16 payments have been made, what percentage of the total principal has been paid (round to the nearest percentage point)? % Redo the problem if the interest rate is 2%(For a well-designed spreadsheet this should take 30 seconds) Required: 5. What is the annual payment (round…1 You borrow money on a self liquidating installment loan (equal payments at the end of each year, each payment is part principal part interest) $992,000 17.4% 43 years January 1, 2021 Use the installment method - not straight line Do NOT round any interrmediate numbers. Do NOT turn this into a monthly problem. Do NOT put in minus signs, answer all positive numbers. Loan amount Interest Rate Life Date of Loan Required: 1. What is the annual payment (round to the nearest $)? $4 2. What are the total interest payments (round to the nearest $)? $. 3. After 16 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)? 1% 4. After 16 payments have been made, what percentage of the total principal has been paid (round to the nearest percentage polint)? 1%NEED PARTS 4-8 You borrow money on a self liquidating installment loan (equal payments at the end of each year, each payment is part principal part interest) Loan amount $630,000 Interest Rate 17.8% Life 62 years Date of Loan January 1, 2021 Use the installment method - not straight lineDo NOT round any interrmediate numbers.Do NOT turn this into a monthly problem.Do NOT put in minus signs, answer all positive numbers. Required: 1. What is the annual payment (round to the nearest $)? $ 112,144 2. What are the total interest payments (round to the nearest $)? $ 6,322,950 3. After 25 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)? %44 4. After 25 payments have been made, what percentage of the total principal has been paid (round to the nearest percentage point)? % Redo the problem if the interest rate is 3%(for a well designed spreadsheet this should take 30 seconds) Required: 5. What…
- Develop an amortization schedule for the loan described. (All answers should be entered in dollars. Round your answers to the nearest cent.) $50,000 for 2 1 2 years at 10% compounded semiannually Period Payment Interest Balance Reduction Unpaid Balance $50,000 1 $ $ $ $ 2 $ $ $ $ 3 $ $ $ $ 4 $ $ $ $ 5 $ $ $ $0.00Fl in an amortization table (in dollars) for a loan of $8,500 to be paid back over 2 years, at an annual interest rate of 1.3, compounded quarterly. For eech value in the table, round your answer to the nearest cent and use this value to calculate the next value. Payment number Payment amount Payment amount to interest Payment amount to debt Outstanding principal S0.500 13 14You borrow money on a self liquidating installment loan (equal payments at the end of each year, each payment is part principal part interest) Loan amount $572,000 Interest Rate 9.7% Life 54 years Date of Loan January 1, 2023 Use the installment method not straight line Do NOT round any interrmediate numbers. Do NOT turn this into a monthly problem. Do NOT put in minus signs, answer all positive numbers. Required: 1. What is the annual payment (round to the nearest $)? $ 2. What are the total interest payments (round to the nearest $) ? $ 3. After 22 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)? % 4. After 22 payments have been made, what percentage of the total principal has been paid (round to the nearest percentage point )? % Redo the problem if the interest rate is 3% (for a well designed spreadsheet this should take 30 seconds) Required: 5. What is the annual payment (round to the nearest $)? $ 6. What are the…
- Calculate the principal portion of the second payment on the required on an amortized loan annual interest rate of 8.25% for 20 years. finance the purchase of a new home priced at $99,757.57 assuming the O A. $165.30 O B. $174.17 OC. $175.30 O D. $164.17 Click to select your answer. tUs /- MacBook Air 888 F4 14 F7 F1 F3 FS F6 II 4) F9 F10 F11 @ 2$ 4 23 & 2 6. 0. R Y P. S D F H. J K B alt command +(Loan amortization) On December 31, Beth Klemkosky bought a yacht for $70, 000. She paid $14, 000 down and agreed to pay the balance in 11 equal annual installments that include both the principal and 11 percent interest on the declining balance. How big will the annual payments be? Question content area bottom Part 1 a. On December 31, Beth Klemkosky bought a yacht for $70, 000 and paid $14,000 down, how much does she need to borrow to purchase the yacht? $ 56000 (Round to the nearest dollar.) Part 2 b. If Beth agrees to pay the loan plus 11 percent compound interest on the unpaid balance over the next 11 years in 11 equal end-of-year payments, what will those equal payments be? (Round to the nearest cent.)Brief Exercise 5 - 19 (Algo) Solve for unknown; annuity [LO5 - 9] A company borrowed $ 160, 000 from a local bank. The loan requires 12 equal annual payments beginning one year from today. Assume an interest rate of 8%. What is the amount of each annual payment? Note: Use tables, Excel, or a financial calculator. Round your final answer to nearest whole dollar amount. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)