A company borrows $120,000 at anannual interest rate of 5% for aperiod of 3 years. Calculate thetotal interest to be paid over the 3years using simple interest.

Step 1: Step 2: Step 3: Step 4:

Answered: A company borrows $120,000 at an annual…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 1EA: Halep Inc. borrowed $30,000 from Davis Bank and signed a 4-year note payable stating the interest...

See similar textbooks

Similar questions

A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an annual interest rate of 11%. If 6 months have passed since note establishment, what would be the recorded interest figure at that time? A. $7,150 B. $65,000 C. $14,300 D. $2,383
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. Prepare an amortization table showing the principal and interest in each payment.
Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual interest rate of 6%, and payable in four months. How much interest will Marathon Peanuts owe at the end of four months? A. $2,600 B. $7,800 C. $137,800 D. $132,600
Sharapovich Inc. borrowed $50,000 from Kerber Bank and signed a 5-year note payable stating the interest rate was 5% compounded annually. Sharapovich Inc. will make payments of $11,548.74 at the end of each year. Prepare an amortization table showing the principal and interest in each payment.
1. A debt of P3,500 is to be amortized by 6 equal semiannual payments with interest at 6%compounded semiannually. Find the periodic payment and construct on amortization schedule. 2. Monthly payments of P800 each are used to settle a loan for 8 months at 8% compounded monthly. Find the present value of the loan and construct an amortization table.
Telemundo Ltd. borrows K100, 000 from AB bank. The loan is to be repaid in 1year with periodic payments made at the end of each month. The lender charges 20% interest per annum. Calculate the monthly charge and construct the amortization schedule for the first FIVE (5) repayments on this loan.
onsider the following loan. Complete parts (a)-(c) below. n individual borrowed $65,000 at an APR of 5%, which will be paid off with monthly payments of $442 for 19 years. ... a. Identify the amount borrowed, the annual interest rate, the number of payments per year, the loan term, and the payment amount. The amount borrowed is $ 65000, the annual interest rate is 5%, the number of payments per year is 12, the loan term is 19 years, and the payment amount is $ 442. b. How many total payments does the loan require? What is the total amount paid over the full term of the loan? There are 228 payments toward the loan and the total amount paid is $ 100776 c. Of the total amount paid, what percentage is paid toward the principal and what percentage is paid for interest? The percentage paid toward the principal is% and the percentage paid for interest is%. (Round to the nearest tenth as needed.)
4. Establish loan amortization schedules for 3-ycar loan of $20,000 (initial loan) with cqual payments at the end of cach year. The interest rate is 5 percent per year. NOTE: PLEASE SHOW HOW YOU COMPUTE EACH OF THE ITEMS.
Find the payment necessary to amortize a 4% loan of $900 compounded quarterly, with 15 quarterly payments. The payment size is S
Sandy Corporation has to repay its loan of BDT 03 million in 06 years. Prepare the loan amortization schedule for Sandy Corporation considering a stated interest rate of 10% with semi- annual compounding.
A limited company borrows form commercial bank 1,000,000 at 12% interest to be paid in equal annual installments. What would be the size of the installment be? Assume the payment paid in 5 years.
4) Monthly payments are required on a $35,000 loan at 6.0% compounded monthly. The loan has an amortization period of 15 years. a) Calculate the interest component of Payment 137. b) Calculate the principal component of Payment 76. c) Calculate the interest paid in Year 1. d) Calculate the interest paid in Year 14,

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Pfin (with Mindtap, 1 Term Printed Access Card) (…

Finance

ISBN:

9780357033609

Author:

Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:

Cengage Learning

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Pfin (with Mindtap, 1 Term Printed Access Card) (…

Finance

ISBN:

9780357033609

Author:

Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:

Cengage Learning

Financial Accounting Intro Concepts Meth/Uses

Finance

ISBN:

9781285595047

Author:

Weil

Publisher:

Cengage

SEE MORE TEXTBOOKS

A company borrows $120,000 at an annual interest rate of 5% for a period of 3 years. Calculate the total interest to be paid over the 3 years using simple interest.