In order to finance a new product line, a company that makes high-temperature ball bearings borrowed $1.7 million at 8% per year compound Interest. The company repaid the loan in a lump sum amount after 3 years. Note: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. What was the amount and percentage of interest based on the original principal? Enter your answer in thousands of dollars and not millions. The interest was $ The percentage of interest was

In order to finance a new product line, a company that makes high-temperature ball bearings borrowed $1.7 million at 8% per year compound Interest. The company repaid the loan in a lump sum amount after 3 years. Note: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. What was the amount and percentage of interest based on the original principal? Enter your answer in thousands of dollars and not millions. The interest was $ The percentage of interest was

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money

Section: Chapter Questions

Problem 9.21MCE

See similar textbooks

Similar questions

McMasters Inc. specializes in BBQ accessories. In order for the company to expand its business, they take out a long-term loan in the amount of $800,000. Assume that any loans are created on January 1. The terms of the loan include a periodic payment plan, where interest payments are accumulated each year but are only computed against the outstanding principal balance during that current period. The annual interest rate is 9%. Each year on December 31, the company pays down the principal balance by $50,000. This payment is considered part of the outstanding principal balance when computing the interest accumulation that also occurs on December 31 of that year. A. Determine the outstanding principal balance on December 31 of the first year that is computed for interest. B. Compute the interest accrued on December 31 of the first year. C. Make a journal entry to record interest accumulated during the first year, but not paid as of December 31 of that first year.
Aerotron Electronics has just bought a used delivery truck for $15,000. The small business paid $1,000 down and financed the rest, with the agreement to pay nothing for the entire first year and then to pay $576.83 at the end of each month over years 2, 3, and 4 (first payment is in 13th month). a. What nominal interest rate is Aerotron paying on the loan? % b. What effective interest rate are they paying? % Round your answer to 4 decimal places for a and b. The tolerance is ± 0.0005. c. How much of the 14th month's payment is interest? How much is principal? payment interest = $ , and principal = $ d. How much of the 18th month's payment is interest? How much is principal? payment interest = $ , and principal = $ e. How much of the 22nd month's payment is interest? How much is principal? payment interest = $ , and principal = $ Round your answers to the nearest whole dollar for c-e. The tolerance is ± 5.
Your company is planning to borrow $1 million on a 5-year, 11%, annual payment, fully amortized term loan. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below. Open spreadsheet What fraction of the payment made at the end of the second year will represent repayment of principal? Do not round intermediate calculations. Round your answer to two decimal places. %
5. General Computers Inc. purchased a computer server for $56,000. It paid 35.00% of the value as a down payment and received a loan for the balance at 10.00% 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 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 $36,400.00 1 2 : : : : : : : : : : : : : : : : : : : : 0.00 Total
RKI Instruments borrowed $4,850,000 from a private equity firm for expansion of its facility for manufacturing carbon monoxide monitors. The company repaid the loan after 1 year with a single payment of $5,300,000. What was the interest rate on the loan? The interest rate on the loan was % per year.
Can you pelase explain this Question Broken Brady Inc. borrowed $250,000 on June 30, 2021. The loan bears annual interest at 10% and interest payments are made semi-annually on December 31 and June 30 of each year. In connection with this loan, how much interest payable should be reported at December 31, 2021? $25,000. None of the answers are correct. $50,000. $12,500. $8,000.
Dayannara Bank loaned P5,000,000 to Dama Company on January 1, 2007. The terms of the loan require principal payments of P1,000,000 each year for 5 years plus interest at 8%. The first principal and interest payment is due on December 31, 2007. Dama Company made the required payments during 2007 and 2008. However, during 2009 Dama Company began to experience financial difficulties and was not able to pay the next installment of principal and interest, this required Dayannara to reassess the collectibility of the loan. On December 31, 2009, Dayannara determined that the remaining principal payment will be collected starting December 31, 2010 but the collection of the interest is unlikely. Assume that Dayannara accrued interest on December 31, 2009 but did not continue to accrue interest because of its uncollectibillity. The present value of 1 at 8% is as follows:For one period 0.93For two periods 0.86For three periods 0.79 . What is the loan impairment loss on December 31, 2009?…
2. Costa farms borrowed $6,100 6 years ago to purchase a new automated fertilizer. They have made no payments and now owe $10,045 6 years later. what is the interest on the loan? Margin of error .003 Enter your answer as a decimal not a percent. So if the interest calculate is 7.34 % you should enter 0.0743
PLEASE HELP WITH PART B In order to finance a new product line, a company that makes high-temperature ballbearings borrowed $1.8 million at 10% per year compound interest. If the company repaid the loan in a lump sum amount after 2 years, what was (a) the amount of thepayment, and (b) the amount and percentage of interest based on the original principal?
E. PART E PROBLEM. USE SEPARATE EXCEL ANSWER SHEET. Suppose your business borrow $14,000 from the bank in order to buy a new car by signing a promissory note payable. The bank charges 6% APR, compounded monthly. You will make equal monthly payments at the end of each month for two years. 1. 2. Complete an amortization schedule in Excel for all 24 months that shows the table headers and columns below. Prepare the journal entry for the first payment (Mo. #1). 1 2 Mo.# Beg. Balance 14,000.00 etc. Principal Payment Interest Reduction End. Balance
Use the following information for the following questions: Smooth Pass Corp. has three sources of borrowings in an accounting period: Outstanding Liabilities Interest Change Seven-year loan 8,000,000 1,000,000 25-year loan 12,000,000 1,000,000 Bank overdraft 4,000,000 600,000 QUESTIONS: If all of the borrowing are used to finance the production of a qualifying asset, but none of the borrowings relate to a specific qualifying asset, what is the capitalization rate? a. 9.67% b. 10%. c.10.83% d.11.33 % 2. If the seven-year loan is an amount which can be specifically identified with a qualifying asset, what is capitalization rate? a. 9.67%. b. 10%. c. 10.83% d. 11.33%
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 : : : : : :