Use the following information to answer the next two questions: On January 1, 2018, Jimbo Enterprises purchased new equipment for its training center. The equipment cost $220,000. Jimbo paid $25,000 down and is required to pay the rest in semiannual installments for the next 8 years. Jimbo's cost of borrowing is 4%. What is the amount of the semiannual payment Jimbo will make every six months? Select one: O a. 28,963 b. 16,203 c. 14,362 d. 12,188 e. None of the above
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Also, what is the total amount of interest expense Jimbo will pay over the life of the loan?
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- Chuck’s Publishing, Inc. borrows $30,000 from Citicorp to finance the purchase of a new office cooling system. The loan has an interest rate of 12% and Chuck’s will be required to make annual payments for the next 3 years. Fill in the following loan amortization schedule for this transaction.(Please answer in Excel Format and demonstrate how you got the answer so I can better understand.) You plan to buy a house in October 2022. The sale price is $539,000. You need to pay 10% down payments and borrow the additional 90% from Wells Fargo Bank with a 15-year, 3.75% fixed-rate mortgage loan. You need to pay an equal MONTHLY payment starting from December 1, 2022 for a total of 15 years. (1) Calculate your expected monthly mortgage payment. (2) Develop the full amortization table for your mortgage loan. (3) When you prepare your 2023 tax filing, what is the total mortgage interest payment that you can consider for the tax deduction?YOUR PARENTS OBTAIN A 2021 MODEL OF TOYOTA FORTUNER FOR P1,500,000.00. THE AGREED PAYMENT IS 5 YEARS and MONTHLY AMORTIZATION CHARGING THEM 8% INTEREST RATE. TOYOTA REQUIRED A DOWN PAYMENT OF 30%. FIND THE MONTHLY AMORTIZATION. 1. CONSTRUCT AN AMORTIZATION SCHEDULE USING AN EXCEL FORMAT THEN ANSWER THE FOLLOWING QUESTIONS: a) AFTER PAYING FOR 3 YEARS, YOUR PARENTS DECIDED TO PAY THE REMAINING PRINCIPAL BALANCE, HOW MUCH IS THE REMAINING PRINCIPAL BALANCE AT THE BEGINNING OF 4TH YEAR? b) HOW MUCH INTEREST DID YOUR PARENT SAVE BY PAYING AT THE REMAINING PRINCIPAL AMOUNT AT THE START OF 4TH YEAR? c) IF THEY DECIDED NOT TO PAY THE PRINCIPAL STARTING ON THE 4TH YEAR AND CONTINUE PAYING THE MONTHLY AMORTIZATION UNTIL THE END OF TERM, HOW MUCH IS THE TOTAL INTEREST PAID?
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- You purchase a plot of land worth $58,000 to create a community garden. To do so, you secure a 10-year loan, charging 5.11% APR, compounded monthly, and requiring monthly payments of $505. (Assume the value of the land is still $58,000. Round each answer to the nearest dollar.) (a) Assuming that you put some money down, what was your original loan amount (in dollars)? $ (b) What is the outstanding balance (in dollars) on your loan after making 4 years of payments? (c) How much equity (in dollars) do you have in the garden after 4 years?For a student loan of $20,700 at 2.75% for 20 years, complete the following. (a) Calculate the monthly payment necessary to amortize the loan amount. (b) Find the amount of money saved over the lifetime of the loan if an additional $100 is added to the monthly payment. (a) The monthly payment is $. (Do not round until the final answer. Then round to the nearest cent as needed.)Apple has purchased land for $500,000 for their new factory. They make a down payment of $100,000, and the remainder is financed at (15) percent compounded semi-annually with semi-annual payments over 4 years. Develop an Excel® table to illustrate the payment amounts and schedule for the loan, assuming payback follows a) Plan 1: Pay the accumulated interest at the end of each interest period and repay the principal at the end of the loan period. b) Plan 2: Make equal principal payments, plus interest on the unpaid balance at the end of the period. c) Plan 3: Make equal end-of-period payments. d) Plan 4: Make a single payment of principal and interest at the end of the loan period. e) A different plan: Pay off the principal in such a way that it is X, 1.5X, 2X, 2.5X... till the end of the last payment period. In addition, pay the accumulated interest at the end of each interest period.