The company purchases a machine, its cost of $726,000 will be financed with a loan at 13.8% interest for three years that requires equal semi-annual payments (annuities) that include principal and interest. What is the amount of the payment?
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5.-
DO IT IN EXCEL, AND SHOW THE FORMULAS
The company purchases a machine, its cost of $726,000 will be financed with a loan at 13.8% interest for three years that requires equal semi-annual payments (
A) $185,674.92
B) None of these amounts
C) $311,662.13
D) $151,841.86
(Choose one option)
Step by step
Solved in 2 steps with 1 images
- 5.-DO IT IN EXCEL, AND SHOW THE FORMULASThe company purchases a machine, its cost of $726,000 will be financed with a loan at 13.8% interest for three years that requires equal semi-annual payments (annuities) that include principal and interest. What is the amount of the payment? A) $185,674.92 B) None of these amounts C) $311,662.13 D) $151,841.86K Consider a loan of $88,000 at 4% compounded annually, with 12 annual 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 annual payments (c) the total payments and total amount of interest paid based upon an amortization table. (a) The annual 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.)PLEASE, PERFORM THE EXERCISE IN EXCEL AND SHOW THE FORMULAS9.-Textiles del Desierto, S.A., negotiates an industrial equipment worth $650,000.00 (20.35) cash is sold in installments, with an advance payment of 15% and the balance in a year and a half with equal semi-annual payments, charging 16½ % interest. Find the value of each of the semiannual payments or annuities. Note:In the image, this is the original exercise, it is in Spanish, but it is easy to understand. Very important Note:It is necessary that you make a solution approach and then the result. Above all, to check the procedure and/or the formulas used, especially when you use excel.
- H3. The interest rate on a $6400 loan is 7% compounded semi-annually, and the loan is to be repaid by monthly payments of $155. Construct a partial amortization schedule showing the last 2 payments. Determine the total amount paid to settle the loan. Show work, not just the answer. Determine the total principal repaid. Determine the total amount of interest paid. Show work, not just the answer.(b) The company is considering purchasing a new delivery truck for $1,200,000. The intention is to obtain a 5-year loan from their bank, at an interest rate of 9% per annum. Annual payments are expected to be made on the loan. Required:i. Calculate Micron Industries’ annual payment on this loan. ii. Prepare the 5-year Amortization Schedule for this loan, clearly showing the interest and principal payment annually.A construction company plans to accelerate the payments on an equipment loan as production increases. The initial payment is $10,000 per year and the plan is to increase the payment, beginning in year 2, by an additional $1,000 each year through year 10. Determine the equivalent annual payment if the loan interest rate is 12%. Select one: O a. $13,585 Ob. $12,650 Oc. $18,650 O d. $15,485 Next page GRO3-07.06.2021 Time:14.30 Jump to... u Rabiu (Log out) N 204 14:43 AK A O 4x O ENG 24/06/2021
- You are offered loans from two competing lenders on the purchase of a $6.5 million property for a 5-year term (25-year amortization). Assume that payments are made ANNUALLY. The terms are outlined below: Loan 1 Loan 2 LTV 62.5% 70.0% Rate 6.375% 6.875% Fees (total) $55,000 $77,000 Calculate the incremental cost for the extra funds provided by loan 2. Hint: Remember that the loan will not be outstanding a full 25 years. ENTER YOUR ANSWER AS A DECIMAL WITH 4 PLACES. IF YOUR ANSWER4. A house costs $148,000. It is to be paid off in exactly ten years, with monthly payments of $1737.54. What is the APR of this loan?A) 6.25% B) 5.25%C) 7.25%D) 8.25%A loan of $17,500.00 is repaid by making annual payments of $5,781.10 at the end of each year. If interest is 6.13% compounded annually. How many payments are required to amortize the loan? Round UP the answer to the next higher whole number (e.g. 5.12 must be entered as 6). Number of payments = whole number) PV=$ 2) (enter a 3) 4) Complete the amortization table below. Enter only POSITIVE VALUES IN THE AMORTIZATION TABLE (rounded to two decimal places). Total Payment number Payment amount Interest Paid Principal Repaid Balance 0) $17,500.00 1) FA tA I/Y= $ PMT=$ $ GA FA A SA FA GA P/Y=C/Y= GA FV=$ A GA GA EA $
- I need well explained answers by showing all steps and calculations, involving all formulas.. A $10 000 loan is to be repaid with semi-annual payments of $ 2500 for as long as necessary. If interest is at j12 = 12%, create a complete amortization schedule.(Exercise 3.24) A loan of $2400 is to be repaid by annual payments of $261 to commence at the end of the 5 th year and fo continue thereafter tor as long as necessary. Find the time and amount of the final payment, If the final payment is to be larger than tho regular payments, Assume 1=5.2% . Last payment at time_________ Last payment $______ $A loan of $5000 is taken out today. It is due with interest at j4 = 8% in 2 years. Instead, the borrower negotiates with the lender to pay $2500 in 1 year and $X in 3 years. If the lender can reinvest any payment at j₂ = 5%, what is the value of X? OA. $3038.93 OB. $2493.59 OC. $3581.68 D. $3395.34