The Wesley Company purchased office furniture and equipment for $8,600 and agreed to pay for the purchase by making five annual installment payments beginning one year from today. The installment payments include interest at 8%. What is the required annual installment payment? a. $2,154 b. $1,720 c. $1,994 d. $1,466

A $560,000 townhome in Richmond Hill was purchased with a down payment of 20% of the amount. A 20-year mortgage was taken for the balance. The negotiated fixed interest rate was 5.25% compounded semi-annually for a three-year term with repayments made at the end of every month. a. What is the size of the monthly payment? Round to the nearest cent b. What was the principal balance at the end of the three-year term? Round to the nearest cent c. By how much did the amortization period shorten if the size of the periodic payments were increased by 15% starting from the 37th payment? Assume the same interest rate. months

Colton received a loan of $44,700 at 8.1% compounded semi-annually and settled the loan by making payments at the end of every three months for one year. Round off all answers to two decimal places a) Calculate the size of the payments. PMT Payment Number b) Fill in the missing values in the amortization schedule below. 0 2 3 Payment Amount ($) PMT $ $ $ - $ $ Interest Portion ($) INT Principal Portion ($) PRN Loan Balance ($) BAL $44,700

Halep Inc. borrowed $30,000 from Davis Bank and signed a 4-year note payable stating the interest rate was 4% compounded annually. Halep Inc. will make payments of $8,264.70 at the end of each year. Annual Period  Interest Expense Annual Payment Principal Payment Ending Balance 1 $1,200.00 $8,264.70 $7,064.70 $22,935.30 2 $917.41 $8,264.70 $7,347.29 $15,588.01 3 $623.52 $8,264.70 $7,641.18 $7,946.83 4 $317.87 $8,264.70 $7,946.83 $0     Principal Payment Cash Interest Income LT Notes Payable Annual Payment Interest Expense provide the journal entry for the first year payment: DR     DR/CR?     CR