Stinson Corporation borrowed $85,000 at 8%compounded quarterly to buy a warehouse.Monthly payments of $1200 were made overthe term of the loan.Construct a partial amortization schedule showingthe 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. Showwork, not just the answer.

Amortization schedule refers to the statement showing the amount of repayment of the loan including…

Answered: Stinson Corporation borrowed $85,000 at…

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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Falco Inc. financed the purchase of a machine with a loan at 3.50% compounded semi-annually. This loan will be settled by making payments of $9,100 at the end of every six months for 8 years. a. What was the principal balance of the loan? b. What was the total amount of interest charged?
Bank Al Ain Islami provides a financing facility based on the Murabaha principle to Seif Construction to purchase specialized Equipment to be used for their construction project. The amount of financing is $15,000,000 at a constant rate of return of 10% for a period of 5 years. Due to some cash flow problems, Seif Construction paid the final installment in Year 6. Required: i. ii. Present a statement showing the amount of Net Receivable, Unearned Murabaha Income, and Murabaha Income for the whole duration of the contract.Prepare journal entries for Bank Al Ain Islami for the above transactions (YO-Y6).
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?
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.
Kavra Corporation purchased a building by signing a $150,000 long-term mortgage with monthly payments of $2,000. The mortgage carries an interest rate of 12 percent. 1. Prepare a monthly payment schedule showing the monthly payment, the interest for the month, the reduction in debt, and the unpaid balance for the first three months. (Round to the nearest dollar.)2. Prepare the journal entries to record the purchase and the first two monthly payments.
General Computers Inc. purchased a computer server for $54,000. It paid 40.00% of the value as a down payment and received a loan for the balance at 4.50% compounded semi-annually. It made payments of $2,800.81 at the end of every quarter to settle the loan. a. How many payments are required to settle the loan? 0 payments Round up to the next payment b. Fill in the partial amortization schedule for the loan, rounding your answers to two decimal places.
Canliss Mining Company borrowed money from a local bank. The note the company signed requires five annual installment payments of $10,000 beginning immediately. The interest rate on the note is 7%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) What amount did Canliss borrow? (Round your final answers to nearest whole dollar amount.) Table/Calculator Function = Payment = n = i = Present Value =
a) A bank made a 4-year 12% amortizing $2,500,000 loan with equal payments. What is the amount of interest and principal paid at the end of the 3rd year? What is the balance on the loan at the end of the 3rd year? b) Assume instead the bank demands that the borrower pay interest only for the first two years and then principal payments of $1,250,000 in years 3 and 4. What is the amount of interest and principal paid at the end of the 3rd year? What is the balance on the loan at the end of the 3rd year? Assume the same 12% rate of interest. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac).
Hewlett Plastics Inc. received a loan of $51,000.00 at 3.50% compounded quarterly to purchase machinery for its factory. Calculate the time period of the loan if the total amount of interest paid was $17,582.10.
Island News purchased a piece of property for $1.82 million. The firm paid a down payment of 20 percent in cash and financed the balance. The loan terms require monthly payments for 20 years at an APR of 4.00 percent, compounded monthly. What is the amount of each mortgage payment?
Givens, Hong, and Partners obtained a $8,100 term loan at 9.6% compounded annually for new boardroom furniture. Prepare a complete amortization schedule in which the loan is repaid by equal semiannual payments over three years. (Round your answers to the nearest cent. Do not round the intermediate calculations.) Payment Interest number Payment $ portion $ 0 DLN3 456 1 2 1624.80 1624.80 1624.80 1624.80 1624.80 1624.80 Principal portion $ Principal balance $ 8,100.00
Island News purchased a piece of property for $1.46 million. The firm paid a down payment of 20 percent in cash and financed the balance. The loan terms require monthly payments for 20 years at an APR of 4.33 percent, compounded monthly. What is the amount of each mortgage payment? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Note: You may use Excel or Google Sheets to solve this problem (highly recommended).

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