1. A debt of Php 150,000 is to be amortized by ten semi-annual payments, the first to be made 6months after the loan is given. The debt will be discharged by five equal payments each Php8,000 and by five other equal payments of such amount that the final payment will liquidatethe debt. If the interest rate is 11% compounded annually, construct an amortization schedulefor the debt.

Loan Amortization: A simple definition of amortization is the amount of principal and interest that…

Answered: A debt of Php 150,000 is to be…

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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Similar questions

A $14,000 loan is to be amortized for 10 years with quarterly payments of $467.98. If the interest rate is 6%, compounded quarterly, what is the unpaid balance immediately after the sixth payment? (Round your answer to the nearest cent.)
Construct the amortization schedule for a $7000 debt that is to be amortized in 5 equal quarterly payments at 2.5% interest per quarter on the unpaid balance. How much interest must be paid?
Construct an amortization schedule for a £2,000 loan that has a 10% annual interest rate that is repaid in three equal installments.
To pay for remodeling, the company will take out a $500,000 five-year loan at 9.5% interest, compounded quarterly. The terms of the loan have been entered in the Loan Analysis worksheet. In cell B8, calculate the quarterly payment on the loan based on the loan conditions already entered. Complete the amortization schedule in cells B11 through E30. Column B contains the interest payment for each quarter, and column C contains the principal payment. Column D contains the remaining principal at the start of each month. The initial principal remaining is $500,000. The subsequent remaining principal values are reduced by the principal payment made in the previous quarter. Calculate the ending balance in cell D31. Use the IPMT function in cell B11 to calculate the interest amount paid per period. Copy this formula to cell B30. Use the PPMT function in cell C11 to calculate the principal amount paid per period. Copy this formula to cell C30. Write a formula in cell D11 to indicate the…
A debt of $22,000 with interest of 10% compounded quarterly is to be amortized by payments of $5,000 at the end of each quarter for as long as necessary. Construct an amortization schedule showing the distribution of the payments as to interest and the repayment of principal.
To pay for remodeling, the company will take out a $500,000 five-year loan at 9.5% interest, compounded quarterly. The terms of the loan have been entered in the Loan Analysis worksheet. In cell B8, calculate the quarterly payment on the loan based on the loan conditions already entered. Complete the amortization schedule in cells B11 through E30. Column B contains the interest payment for each quarter, and column C contains the principal payment. Column D contains the remaining principal at the start of each month. The initial principal remaining is $500,000. The subsequent remaining principal values are reduced by the principal payment made in the previous quarter. Calculate the ending balance in cell D31. Use the IPMT function in cell B11 to calculate the interest amount paid per period. Copy this formula to cell B30. Use the PPMT function in cell C11 to calculate the principal amount paid per period. Copy this formula to cell C30. Write a formula in cell D11 to indicate the…
A $17,000 loan is to be amortized for 10 years with quarterly payments of $568.26. If the interest rate is 6%, compounded quarterly, what is the unpaid balance immediately after the sixth payment? (Round your answer to the nearest cent.)
Determine the annual payment on a OMR 500,000 and 12 percent business loan from a commercial bank that is to be amortized over a five year period.
SportZ has negotiated a loan of $25 000 with interest at 7.6% per annum, to be paid as month-end payments of $2200.00 over the next year. Construct a loan amortization schedule to answer the following questions. i. How much interest is paid over the first two months? ii. How much of the principal is paid by the end of the first two months? iti. How much interest is paid over the term of the loan? iv. What is the amount of the final payment?]

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