An engineer buys a car for $20,600. giving a down payment of $5,000. followed by 48 monthly installments of $375. The initial payment was made at the time of purchase and monthly payments begin at the end of the first month. What is the annual nominal interest of this negotiation? a. 5.575% b. 7.445% c. None of these d. 6.002% e. 7.199%

An engineer buys a car for $20,600. giving a down payment of $5,000. followed by 48 monthly installments of $375. The initial payment was made at the time of purchase and monthly payments begin at the end of the first month. What is the annual nominal interest of this negotiation? a. 5.575% b. 7.445% c. None of these d. 6.002% e. 7.199%

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

Problem 1PS

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25 A company purchases a piece of machinery by issuing a $300,000 five-year note payable. The stated and effective annual interest rates are both 6%, and monthly installment payments are $5,800. What is the balance in the Notes Payable account after two payments have been made? $288,400 O $291,379 $295,700 $300,000 NEXT > BOOKMARK
Suppose you borrow $14,000. The interest rate is 11%, and it requires 4 equal end-of-year payments. Set up an amortization schedule that shows the annual payments, interest payments, principal repayments, and beginning and ending loan balances. Round your answers to the nearest cent. If your answer is zero, enter "0". Beginning Repayment Ending Year Balance Payment Interest of Principal Balance 1 $ fill in the blank 60 $ fill in the blank 61 $ fill in the blank 62 $ fill in the blank 63 $ fill in the blank 64 2 $ fill in the blank 65 $ fill in the blank 66 $ fill in the blank 67 $ fill in the blank 68 $ fill in the blank 69 3 $ fill in the blank 70 $ fill in the blank 71 $ fill in the blank 72 $ fill in the blank 73 $ fill in the blank 74 4 $ fill in the blank 75 $ fill in the blank 76 $ fill in the blank 77 $ fill in the blank 78 $ fill in the blank 79
A construction company takes a loan of $1,322,000 to cover the cost of a new grader. If the interest rate is 7.95% APR, and payments are made monthly for five years, what percentage of the outstanding principal does the company pay in interest each month? A. 0.76% B. 6.63% C. 0.61% D. 0.71% E. 0.66%
K Dirk Ward borrowed $13,000 00 for investment purposes on May 16 on a demand note providing for a variable rate of interest and payment of any accrued interest on December 31. He paid $1000 on June 10, $200 on September 21, and $800 on November 16. How much is the accrued interest on December 31 if the rate of interest was 7% on May 16, 7.5% effective August 1, and 7.8% effective November 12 The accrued interest on December 31 is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed)
Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank in the amount of $550,000. The terms of the loan are 3.7% annual interest rate and payable in 8 months. Interest is due in equal payments each month. A. Compute the interest expense due each month. If required, round final answer to two decimal places. $fill in the blank 923b18021034fe7_1 B. Show the journal entry to recognize the interest payment on October 20, and the entry for payment of the short-term note and final interest payment on May 20. If required, round final answers to two decimal places. If an amount box does not require an entry, leave it blank. Oct. 20 fill in the blank 848f66019ffe028_2 fill in the blank 848f66019ffe028_3 fill in the blank 848f66019ffe028_5 fill in the blank 848f66019ffe028_6 May 20 fill in the blank 848f66019ffe028_8 fill in the blank 848f66019ffe028_9 fill in the blank 848f66019ffe028_11 fill in the blank…
K Dirk Ward borrowed $13,000 00 for investment purposes on May 16 on a demand note providing for a variable rate of interest and payment of any accrued interest on December 31. He paid $1000 on June 10, $200 on September 21, and $800 on November 16. How much is the accrued interest on December 31 if the rate of interest was 7% on May 16, 7.5% effective August 1, and 7.8% effective November 12 The accrued interest on December 31 is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed)
How much is the Principal repaid during the 4th month?
A company purchased new equipment for $31,000 with a two-year installment note requiring 5% interest. The required monthly payment is $1,360. After the first month’s payment, what is the balance of the note? a. $30,723. b. $29,640. c. $29,769. d. $30,871.
You have just borrowed $20,000 on a 10 year loan at 8% simple interest.Complete the Amortization table below for the first 6 month of the loan. Payment Number Beginning Balance payment Amount Applied to interest Applied to principle ending balance 1 20,000.00 242.66 133.33 109.32 A 2 19,890.68 242.66 132.60 110.05 19,780.63 3 19,780.84 B 131.87 110.78 19,669.84 4 19,669.84 242.66 131.13 C 19,558.32 5 19,558.32 242.66 D 112.27 19,446.05 6 E 242.66 129.64 113.01 19,333.04
Choose the closest ancwer below. A. $744.52 B. $751.97 C. $867.00 D. $890.00 E. $667.33
Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank in the amount of $640,000. The terms of the loan are 3.1% annual interest rate and payable in 8 months. Interest is due in equal payments each month. A. Compute the interest expense due each month. If required, round final answer to two decimal places. 1,653.33 B. Show the journal entry to recognize the interest payment on October 20, and the entry for payment of the short-term note and final interest payment on May 20. If required, round final answers to two decimal places. If an amount box does not require an entry, leave it blank. 1,653.33 Oct. 20 Interest Expense Cash May 20 Cash 1,653.33 640,000 1,653.33 641,653.33
92. Subject :- Finance

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