If you answered with incorrect data then will give unhelpful. A company wants to set up infund to spay a loan of15years. If the sinkingas anannual interest rate of10, howmuon should the company depositinto the sinking fund each year?1. $21702. $15603. $12544. $2,000C

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Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

ChapterM: Time Value Of Money Module

Section: Chapter Questions

Problem 2MC

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A company decides to borrow $100 000 at j1 = 12% in order to finance a new equipment purchase. One of the conditions of the loan is that the company must make annual payments into a sinking fund (the sinking fund will be used to pay off the loan at the end of 20 years). The sinking-fund investment will earn j1 = 6%. (Do not round intermediate calculations. Round your answers to 2 decimal places.) a) What is the amount of each sinking-fund payment if they are all to be equal? Amount of each sinking-fund 2$ b) What is the total annual cost of the loan? Total annual cost c) What overall annual effective compound interest rate is the company paying to borrow the $100 000 when account is taken of the sinking-fund requirement? Compound interest rate %
a. Use the appropriate formula to determine the periodic deposit. b. How much of the financial goal comes from deposits and how much comes from interest? Periodic Deposit Rate Time $? at the end of each year 5% compounded annually 14 years Financial Goal $130,000 Click the icon to view some finance formulas. a. The periodic deposit is $ ☐. (Do not round until the final answer. Then round up to the nearest dollar as needed.) b. S of the $130,000 comes from deposits and $ comes from interest. (Use the answer from part (a) to find these answers. Round to the nearest dollar as needed.)
1. Let's assume that a loan of $100,000 with an annual interest rate of 6% over 30 years pays monthly payments of $500. a. Calculate the accumulation rate b. Calculate the payment rate . c. Answer : How will the balance of the principal be at the end of the loan in relation to the original amount of the loan? Less, equal or greater? Provide calculations.
If Your bank _offers to lend y~u $100,000 at_ an 8.5% annual interest rate to start your new business. The terms reqwre you to amortize the loan with 10 equal end-of-year payments. How much interest would you be paying in Year 2?
What is the internal rate of return on a $3,000 loan to be repaid as $3,500 twoyears from now?
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Use the following amortization chart: Selling priceof home Downpayment Principal(loan) Rate of interest Years Payment per$1,000 Monthly mortgage payment $ 95,000 $ 6,000 $ 89,000 6% 30 $ 6.00 $ 534.00 Assume the interest rate rises to 7.5%. What is the total cost of interest with the new interest rate? (Use Table 15.1.) (Do not round intermediate calculations. Round your final answer to the nearest cent.) Total Cost of Interest
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A property has NOI of $4,000,000. One hope to borrow $50,000,000 at 4.25% payable monthly in arrears fully amortizing over 30-years. The bank requires a minimum DSC of 1.40 times. What is the maximum amount can borrow assuming the same interest rate and payment terms?
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A company wants to make a single deposit now so it will have enough money to purchase a beckhoe costing $60000 seven years from now A) if the account will earn interest of 12% per year, the amount that must be deposit can be calculated as? B)if the account will earn interest of 12% per year, the amount that must be deposited now is nearest to Option a)60,000 (F/P.12%7b.$27,138c 60,00 (P/F, 12%7d.$29,256e60,000 (F/A, 12%,7)f $28,326
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A company wants to set up in fund to spay a loan of 15 years. If the sinking as an annual interest rate of 10, how muon should the company deposit into the sinking fund each year? 1. $2170 2. $1560 3. $1254 4. $2,000 C