Interest on a ten-year loan of 10,000 loan is at an annual effective interest rate of i. The sinking fund method is used to repay the loan. The annual sinking fund deposit is twice the amount of the annual interest paid on the loan. The sinking fund credits interest at an annual effective rate of 0.9i. Calculate i.

Interest on a ten-year loan of 10,000 loan is at an annual effective interest rate of i. The sinking fund method is used to repay the loan. The annual sinking fund deposit is twice the amount of the annual interest paid on the loan. The sinking fund credits interest at an annual effective rate of 0.9i. Calculate i.

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 $3,000,000 apartment complex loan is to be paid off in 10 years by making 10 equal annual payments. How much is each payment if the interest rate is 7.5% compounded annually? (a) State the type. A. present valueB.sinking fund C.present value of an annuityD.amortizationE.ordinary annuity (b) Answer the question. (Round your answer to the nearest cent.)
a demand loan of 7000$is repaid by payments of 3500$ after two years, 3500$ after four years and a funal payment after seven years. interfest rate is 9% compunded quarterly for the first two years, 10% compoiunded annuannly for the next two years, and 10% compounded mointhly thereafter. what is the size of the final payment?
A 6-year term insurance policy has an annual premium of $500, and at the end of 6 years, all payments and interest are refunded. What lump-sum deposit is necessary to equal this amount if you assume an interest rate of 2.5% compounded annually? (a) State the type. future value present value of an annuity sinking fund amortization ordinary annuity (b) Answer the question. (Round your answer to the nearest cent.) $
onsider the following loan. Complete parts (a)-(c) below. n individual borrowed $65,000 at an APR of 5%, which will be paid off with monthly payments of $442 for 19 years. ... a. Identify the amount borrowed, the annual interest rate, the number of payments per year, the loan term, and the payment amount. The amount borrowed is $ 65000, the annual interest rate is 5%, the number of payments per year is 12, the loan term is 19 years, and the payment amount is $ 442. b. How many total payments does the loan require? What is the total amount paid over the full term of the loan? There are 228 payments toward the loan and the total amount paid is $ 100776 c. Of the total amount paid, what percentage is paid toward the principal and what percentage is paid for interest? The percentage paid toward the principal is% and the percentage paid for interest is%. (Round to the nearest tenth as needed.)
Fint the periodic payments PAT necessary to accumulate the given amount in an annity account. (Assume end-of-period deposita and compounding at the same intervals as depovits. Round your answer to the nearest cent.) $65,000 in a fund paying 3% per year, whth quarterty payments for 20 years PHT-1
The following loan is fully amortizing. The loan is for $12,000 at 5% interest to be repaid over three (3) years. Amortize this loan on a monthly basis. Calculate the interest portion of the fourth (4th) payment considering that an additional payment of $2,000 was made with the second payment.
Find the payment necessary to amortize the loan.$2500; 6% compounded annually; 7 annual payments
Find the payment necessary to amortize a 12% loan of $2300 compounded quarterly, with 12 quarterly payments. The payment size is $ (Round to the nearest cent.)
An annuity pays each period for 11 periods, the appropriate discount rate/period is 5.3%, and the present value is $510.00. What is the payment each period
A loan of $ 10,000 is amortized by equal annual payments for 30 years at an effective annual interest rate of 10 % Determine the year in which the interest portion of the payment is most nearly equal to one-half of the payment. The year that the interest portion of payment is most nearly equal to one-half of the payment= ?
Using the sinking fund Table 13.3, complete the following: (Do not round intermediate calculations. Round your answer to the nearest cent.) Frequency of payment Payment amount end of each Required Interest Length of time amount rate period 24,700 Quarterly 5 years 8% acer %24
A loan is repayable by a decreasing annuity payable annually in arrears for 20 years. The repayment at the end of the first year is $6 000 and subsequent repayments reduce by $200 each year. The repayments were calculated using a rate of interest of 9% per annum effective.Calculate the original amount of the loan.