A design studio received a loan of $6,750 at 5.80% compoundedsemi-annually to purchase a camera. If they settled the loan in 3years by making quarterly payments, construct the amortizationschedule for the loan and answer the following questions:a. What was the payment size?b. What was the size of the interest portion on the first payment?c. What was the balance of the loan at end of the first year?d. What was the size of the interest portion on the last payment?ANSWER EVERYTHING TO THE NEAREST CENT

An amortization plan for a loan shows every periodic payment, including the principal and interest…

Answered: A design studio received a loan of…

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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Stinson Corporation borrowed $85,000 at 8% compounded quarterly to buy a warehouse. Monthly payments of $1200 were made over the term of the loan. Construct a partial amortization schedule showing the last 2 payments. Determine the total amount paid to settle the loan. Show work, not just the answer. Determine the total principal repaid. Determine the total amount of interest paid. Show work, not just the answer.
Carry out the amortization table of an automobile loan that is canceled with 36 monthly payments of $ 5,750, at an interest rate of 25.20% per annum, compounded by months, to. Make the amortization table for this case that contains: payment, interest, payment to capital and unpaid balance. b. What is the unpaid balance after making payment number 15? c. What is the unpaid balance after making payment number 30?
Owners of a new restaurant have found numerous costs associated with starting their business (see table). They financed the total of these costs with end-of-month payments through a loan from the bank at {E}compounded {F}, amortized over {G} years. 1. What is the size of the monthly payments required to settle this loan? 2. What is the principal balance outstanding on the loan after one year? 3. What is the size of the final payment? 4. Construct a partial amortization schedule for this loan.
A landscape architect accrued $7,876.36 in credit card debt. If the architect makes a monthly payment of $600 (and makes no additional charges on the account), how many months will it take to repay the debt If the annual Interest rate on the credit card is 18.8%? (Round your answer up to the nearest month.) months
Chuck’s Publishing, Inc. borrows $30,000 from Citicorp to finance the purchase of a new office cooling system. The loan has an interest rate of 12% and Chuck’s will be required to make annual payments for the next 3 years. Fill in the following loan amortization schedule for this transaction.
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A design studio received a loan of $8,950 at 5.60% compounded semi-annually to purchase a camera. If they settled the loan in 2 years by making quarterly payments, construct the amortization schedule for the loan and answer the following questions: a. What was the payment size? Round to the nearest cent b. What was the size of the interest portion on the first payment? ← a acer SUBMIT QUESTION SAVE PROGRESS V SUBMIT ASSIC
Apple has purchased land for $500,000 for their new factory. They make a down payment of $100,000, and the remainder is financed at (15) percent compounded semi-annually with semi-annual payments over 4 years. Develop an Excel® table to illustrate the payment amounts and schedule for the loan, assuming payback follows a) Plan 1: Pay the accumulated interest at the end of each interest period and repay the principal at the end of the loan period. b) Plan 2: Make equal principal payments, plus interest on the unpaid balance at the end of the period. c) Plan 3: Make equal end-of-period payments. d) Plan 4: Make a single payment of principal and interest at the end of the loan period. e) A different plan: Pay off the principal in such a way that it is X, 1.5X, 2X, 2.5X... till the end of the last payment period. In addition, pay the accumulated interest at the end of each interest period.
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