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A company is buying a new machine for $100,000. Bank credit is used to finance the entire amount at a rate of 10% per year. (Namely, the interest rate is 10% peryear on the unpaid balance (bakiye) of principal.) The company repay the debt in three years. Ple ase fill in the tables below according to three different payment plans. a PLAN 1 PLAN 1: Pay interest due at end of each year and principle at end of third year Balance Total paid back Interest for Period EOY Interest Principle paid back $100,000.00 1 $0.00 2 $0.00 3 $0.00 TOTAL AMOUNT PAID BACK: AN 2 PLAN 2: Pay principle and interestas a lump sum at end of third year EOY Balance Interest for Interest Principle Total paid back Period paid back $100,000.00 1 S0.00 $0.00 2 $0.00 $0.00 3 $0.00 TOTAL AMOUNT PAID BACK: b. PLAN 3: PLAN 3: Pay interest due at end of each year PLUS $25,000 principle payment at EOY 1,2,3. EOY Balance Interest for Principle Total paid back Interest Period paid back $100,000.00 $25,000.00 $25,000.00 2 3 $0.00 Windows'u TOTAL AMOUNT PAID BACK Windows'u etkin

A company is buying a new machine for $100,000. Bank credit is used to finance the entire amount at a rate of 10% per year. (Namely, the interest rate is 10% peryear on the unpaid balance (bakiye) of principal.) The company repay the debt in three years. Ple ase fill in the tables below according to three different payment plans. a PLAN 1 PLAN 1: Pay interest due at end of each year and principle at end of third year Balance Total paid back Interest for Period EOY Interest Principle paid back $100,000.00 1 $0.00 2 $0.00 3 $0.00 TOTAL AMOUNT PAID BACK: AN 2 PLAN 2: Pay principle and interestas a lump sum at end of third year EOY Balance Interest for Interest Principle Total paid back Period paid back $100,000.00 1 S0.00 $0.00 2 $0.00 $0.00 3 $0.00 TOTAL AMOUNT PAID BACK: b. PLAN 3: PLAN 3: Pay interest due at end of each year PLUS $25,000 principle payment at EOY 1,2,3. EOY Balance Interest for Principle Total paid back Interest Period paid back $100,000.00 $25,000.00 $25,000.00 2 3 $0.00 Windows'u TOTAL AMOUNT PAID BACK Windows'u etkin

Essentials Of Investments
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
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30. A company is buying a new machine for $100,000. Bank creditis used to finance the entire amount at a rate of 10% peryear. (Namely, the intere st rate is 10% peryear on the unpaid balance (bakiye) of principal.) The company repay the debt in three ye ars. Please fill in the tables below according to three different payment plans. a. PLAN 1 PLAN 1: Pay interest due at end of each year and principle at end of third year EOY Balance Interestfor Interest Principle Total paid back Рeriod paid back $100,000.00 1 $0.00 2 $0.00 3 $0.00 TОTAL AMOUNT PAID BACK: ÞLAN 2 PLAN 2: Pay principle and interest as a lump sum at end of third year EOY Balance Interest for Interest Principle Total paid back Period paid back $100,000.00 1 $0.00 $0.00 2 $0.00 $0.00 $0.00 TOTAL AMOUNT PAID BACK: b. PLAN 3: PLAN 3: Pay interest due at end of each year PLUS $25,000 principle payment at E0Y 1,2,3. EOY Balance Interestfor Interest Principle Total paid back Period paid back $100,000.00 1 $25,000.00 2 $25,000.00 3 $0.00 TOTAL Windows'u Et- AMOUNT PAID BACK: Windows'u etlinleşt
Transcribed Image Text:30. A company is buying a new machine for $100,000. Bank creditis used to finance the entire amount at a rate of 10% peryear. (Namely, the intere st rate is 10% peryear on the unpaid balance (bakiye) of principal.) The company repay the debt in three ye ars. Please fill in the tables below according to three different payment plans. a. PLAN 1 PLAN 1: Pay interest due at end of each year and principle at end of third year EOY Balance Interestfor Interest Principle Total paid back Рeriod paid back $100,000.00 1 $0.00 2 $0.00 3 $0.00 TОTAL AMOUNT PAID BACK: ÞLAN 2 PLAN 2: Pay principle and interest as a lump sum at end of third year EOY Balance Interest for Interest Principle Total paid back Period paid back $100,000.00 1 $0.00 $0.00 2 $0.00 $0.00 $0.00 TOTAL AMOUNT PAID BACK: b. PLAN 3: PLAN 3: Pay interest due at end of each year PLUS $25,000 principle payment at E0Y 1,2,3. EOY Balance Interestfor Interest Principle Total paid back Period paid back $100,000.00 1 $25,000.00 2 $25,000.00 3 $0.00 TOTAL Windows'u Et- AMOUNT PAID BACK: Windows'u etlinleşt
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