On January 1, a company agrees to pay $14,000 in three years. If the annual interest rate is 9%, determine how much cash thecompany can borrow with this agreement. (PV of $1. EV of $1. PVA of $1. and FVA of $1) (Use appropriate factor(s) from the tablesprovided. Round "Table Factor" to 4 decimal places.)Future ValueTable FactorAmount Borrowed

Time value of money :— According to this concept, value of money in present day is greater than the…

Answered: On January 1, a company agrees to pay…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A loan of £100,000 is repaid in 11 annual instalments of £13,900, with the first repayment due in one year. What is the interest rate? i 数字 Enter a percentage correct to 1 decimal place. %
subject : finance
Certain Concrete Company deposits $2,000 at the end of each quarter into an account paying 11% interest compounded quarterly. What is the value of the account at the end of 7 1/2 1 2 years? (a) State the type. A. present valueB. ordinary annuity C. sinking fund D. amortization E. none of these (b) Answer the question. (Round your answer to the nearest cent.)
On January 1, a company agrees to pay $22,000 in eight years. If the annual interest rate is 6%, determine how much cash the company can borrow with this agreement. (PV of $1. EV of $1. PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places.) Future Value 22.000 Table Factor Amount Borrowed
3. Complete an amortization schedule for a $38,000 loan to be repaid in equal installments at the end of each of the next 3 years. The interest rate is 7% compounded annually. If an amount is zero, enter "0". Do not round intermediate calculations. Round your answers to the nearest cent. Beginning Balance $ % Interest Year 1 2 3 ɔ. What percentage of the payment represents interest and what percentage represents principal for each of the 3 years? Do not round intermediate calculations. Round your answers to two decimal places. % Principal Payment $ % % % % Interest $ % Repayment. of Principal $ Year 1: Year 2: Year 3: % Why do these percentages change over time? I. These percentages change over time because even though the total payment is constant the amount of interest paid each year is declining as the remaining or outstanding balance declines. Remaining Balance $ II. These percentages change over time because even though the total payment is constant the amount of interest paid…
Subject :
You have taken a loan of $84, 000.00 for 25 years at 5.5% compounded quarterly. Fill in the table below: (Round all answers to 2 decimal places.) \table[[Payment number, Payment amount, Principal Amount, Interest, Balance.], [0),... S 84,000.00,1,1), vdots....S.
On January 1, a company agrees to pay $28,000 in nine years. If the annual interest rate is 3%, determine how much cash the company can borrow with this agreement. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places.)
A debt of $3051 with interest at 7.27% compounded monthly is to be repaid by equal payments at the end of each month for 5 years. What is the balance remaining (BAL) after the first payment? Payment Number 0 1 Answer: PMT INT PRN BAL 3051 ?
A debt of $52000 with interest at 9 6% compounded quarterly is to be repaid by equal payments at the end of every three months for five years. Calculate the size of the monthly payments, total amount paid and cost of financing PV -5 2 dp. PMT S 2dp AMOUNT PAID $ 2 dp COST OF FINANCING S
A $133500 loan is repaid by 20 payments of $6500 each at the begin of quarter, followed by 17 payments of $5800 each at the begin of quarter. What interest rate il is being charged ? Answer: 14.06%

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