Present Value of anOrdinary Annuity TableRate (i)1%3%5%8%10%12%15%20%2%0.990 0.9801.970 1.9420.9710.9520.9260.909 0.893 0.8700.8331.9131.8591.7831.736 1.690 1.6261.5282.941 2.8842.8292.7232.577 2.487 2.402 2.2832.1063.902 3.8083.7173.5463.3123.170 3.037 2.8552.5894.853 4.7134.5804.3293.9933.7913.605 3.3522.9915.795 5.6015.4175.0764.6234.3554.111 3.7853.3266.728 6.4726.2305.7865.206 4.8684.5644.1603.6057.6527.3257.0206.4635.7475.3354.968 4.4873.83798.5668.1627.786 7.108 6.2475.7595.328 4.7724.031109.4718.9838.5307.7226.7106.145 5.6505.019 4.1921110.3689.787 9.2538.3067.1396.495 5.9385.2344.3271211.255 10.575 9.9548.8637.536 6.8146.1945.4214.4391312.13411.348 10.6359.3947.9047.1036.4245.583 4.5331413.0049.899 8.2447.3676.6285.7254.6111513.865 12.84912.106 11.29611.938 10.380 8.55912.561 10.838 8.8517.606 6.811 5.8474.6751614.718 13.5787.8246.974 5.9544.7307.120 6.0474.7756.1284.81217 15.562 14.292 13.166 11.274 9.1228.02218 16.398 14.992 13.754 11.690 9.372 8.201 7.25019 17.226 15.678 14.324 12.085 9.604 8.365 7.366 6.19820 18.046 16.351 14.877 12.462 9.818 8.5144.8447.4696.2594.870Figure B2 Present Value of an Ordinary Annuity Table.Period (n)Present Value of an Ordinary Annuity Table[1 - 1 / (1 + i)"]Factor12345678 Halep Inc. borrowed $39,070 from Davis Bank and signed a 1-year note payable stating the interest rate was 8% compoundedannually.1. Using the Present Value of an Annuity of 1 TABLE4 or Figure B2 in the textbook E, calculate the factor.2. Next, determine the annual payment amount.3. Then, determine the interest portion of the payment for year 1.4. Finally, determine the principal portion of the payment for year 1. Round to the nearest penny, two decimal places.

The time value of money is a concept that elaborates that the worth of the money changes if same…

Halep Inc. borrowed $39,070 from Davis Bank and signed a 1-year note payable stating the interest rate was 8% compounded annually. 1. Using the Present Value of an Annuity of 1 TABLE4 or Figure B2 in the textbook B, calculate the factor. 2. Next, determine the annual payment amount. 3. Then, determine the interest portion of the payment for year 1. 4. Finally, determine the principal portion of the payment for year 1. Round to the nearest penny, two decimal places.

Halep Inc. borrowed $39,070 from Davis Bank and signed a 1-year note payable stating the interest rate was 8% compounded annually. 1. Using the Present Value of an Annuity of 1 TABLE4 or Figure B2 in the textbook B, calculate the factor. 2. Next, determine the annual payment amount. 3. Then, determine the interest portion of the payment for year 1. 4. Finally, determine the principal portion of the payment for year 1. Round to the nearest penny, two decimal places.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

A depositor opens a new savings account with $11,000 at 7% compounded semiannually. At the beginning of year 5, an additional $2000 is deposited. At the end of six years, what is the balance in the account? Click the icon to view some finance formulas. The balance in the account at the end of 6 years is $ (Do not round until the final answer. Then round to the nearest cent as needed.)
the payment necessary to amortize a 4.8% loan of $81000 compounded annually with 7 annual payments is $13897. The total of the payments is $97279.77 with a total interest payment of $16279.77. The borrower made larger payments of $14000.00. Calculate (a) the time needed to pay off the loan, (b) the total amount of the payments, and (c) the amount of interest saved. Question content area bottom Part 1 a. The time needed to pay off the loan with payments of $14,000.00 is (Round up to the nearest year.) b. The total amount of the payments is $ (Round to the nearest cent as needed. c. The amount of interest saved is $ (Round to the nearest cent as needed.)
Use the appropriate formula to find the future value (in $) of $900 deposited at the beginning of every six months, for 17 years if a bank pays 8% interest, compounded semiannually. (Round your answers to the nearest cent.)
Halep Inc. borrowed $42,355 from Davis Bank and signed a 9-year note payable stating the interest rate was 5% compounded annually. Using the Present Value of an Annuity of 1 TABLE4 or Figure B2 in the textbook B, what is the factor?
A payment of $250 was made at the beginning of each month for 7 years into a savings account. After that the accumulated amount was left on the account for 7.5 years. The interest rate on the account is 5.8% compounded semi-annually. Find the interest earned on the account.
Colton received a loan of $44,700 at 8.1% compounded semi-annually and settled the loan by making payments at the end of every three months for one year. Round off all answers to two decimal places a) Calculate the size of the payments. PMT Payment Number b) Fill in the missing values in the amortization schedule below. 0 2 3 Payment Amount ($) PMT $ $ $ - $ $ Interest Portion ($) INT Principal Portion ($) PRN Loan Balance ($) BAL $44,700
You deposit $1,000 in the bank at an annual interest rate of 8%. Interest is compounded once per year. In one year's time you have $ ------ In two year's time you have $ ------- Enter numbers rounded to two decimal places as necessary.
Compute the amount that can be borrowed under each of the following circumstances: (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your "Table value" to 4 decimal places.) 1. A promise to repay $97,000 four years from now at an interest rate of 10%. 2. An agreement to make three separate annual payments of $10,000, with the first payment occurring 1 year from now. The annual interest rate is 8%. Option 1 Loan amount Option 2 Annual payments Table Value Table Value Amount Amount Present Value Present Value
The following certificate of deposit (CD) was released from a particular bank. Find the compound amount and the amount of interest earned by the following deposit. $4000 at 1.07% compounded semianually for 3 years. The compound amount is $. (Do not round until the final answer. Then round to the nearest cent as needed.)
The following certificate of deposit (CD) was released from a particular bank. Find the compound amount and the amount of interest earned by the following deposit. $2500 at 7% compounded daily for 10 years. What is the compound amount? $ (Round to the nearest cent.)
Hinton Inc. borrowed$35,000for 7 years at a simple interest rate of6.1%. The interest was to be paid monthly. (a) Find the monthly interest payment. (Round your final answer to two decimal places.)$ (b) Find the total amount of interest paid.
At the start of this year, $10,000 was deposited into an account that earns an effective annual interest rate of 4% per year for 10 years. Another $1,000 will be deposited at the end of each year for years 1-10, also earning 4% per year. All interest earned remains in the account. How much money is in this account at the end of year 10?