A businessman borrowed $1,300,000 from the bank to finance new equipment for his food co-packing factory. The loan is being paid back in uniform annual payments of $83,200, which correspondsto at an annual interest rate of of 4% over 25 years.What is the balance on the loan immediately after making the 8th annual payment?OA. $1,053,306OB. $634,400OC. $560,161OD. $1,012,186WC

An amortized loan is a type of borrowing where you pay it back over a fixed time. In this way of…

Answered: A businessman borrowed $1,300,000 from…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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An amount of $3000.00 is deposited in a bank paying an annual interest rate of 5 % compounded daily. Find the balance after 4 years. $4,56798 $3,664.16 $3,540.27 $3,001.50 None of these
Halep Inc. borrowed $39,070 from Davis Bank and signed a 1-year note payable stating the interest rate was 8% compounded annually. 1. Using the Present Value of an Annuity of 1 TABLE4 or Figure B2 in the textbook E, calculate the factor. 2. Next, determine the annual payment amount. 3. Then, determine the interest portion of the payment for year 1. 4. Finally, determine the principal portion of the payment for year 1. Round to the nearest penny, two decimal places.
a) A bank made a 4-year 12% amortizing $2,500,000 loan with equal payments. What is the amount of interest and principal paid at the end of the 3rd year? What is the balance on the loan at the end of the 3rd year? b) Assume instead the bank demands that the borrower pay interest only for the first two years and then principal payments of $1,250,000 in years 3 and 4. What is the amount of interest and principal paid at the end of the 3rd year? What is the balance on the loan at the end of the 3rd year? Assume the same 12% rate of interest. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac).
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An amount of $3000.00 is deposited in a bank paying an annual interest rate of 5 % compounded daily. Find the balance after 4 years. A $4,567.98 B $3,664.16 $3,540.27 D $3,001.50 None of these
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11.

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