A company borrows $159,300 from a bank. The interest rate on the loan is 6 percent compounded semiannualy. T to repay the loan in equal semiannualy installments over the next five years. The first payment is to be made six m (Use factor table in Appendix B for calculation) Required 1: What is the amount of each semiannual payment? $ Required 2: In the first payment, what is the amount of interest cancelled? $ Required 3: In the fifth payment, what is the amount of loan paid net of interest? $ Required 4: In the last payment, what is the amount of interest cancelled? $ Required 5: Assume the debt contract has the option to make one extraordinary payment of up to 20% of the prin decides to exercise the right and make the extra payment together with the 8th payment, how much it must pay in payment to pay off the loan? $

A company borrows $159,300 from a bank. The interest rate on the loan is 6 percent compounded semiannualy. T to repay the loan in equal semiannualy installments over the next five years. The first payment is to be made six m (Use factor table in Appendix B for calculation) Required 1: What is the amount of each semiannual payment? $ Required 2: In the first payment, what is the amount of interest cancelled? $ Required 3: In the fifth payment, what is the amount of loan paid net of interest? $ Required 4: In the last payment, what is the amount of interest cancelled? $ Required 5: Assume the debt contract has the option to make one extraordinary payment of up to 20% of the prin decides to exercise the right and make the extra payment together with the 8th payment, how much it must pay in payment to pay off the loan? $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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