Miller borrows $320,000 to be paid off in three years. The loan payments are semiannual with the first payment due in six months, and interest is at 8%What is the amount of each payment? (FV of $1. PV of $1. FVA of $1, and PVA of $1). (Use appropriate factor(s) from the tables provided.)Multiple Choice$82,467$76,800$77,533$61,044

Instalment= P x R x (1+R)^N / [(1+R)^N-1] N= 3 years x 2 = 6 Half years…

Answered: Miller borrows $320,000 to be paid off…

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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Similar questions

Please answer. It's urgent Q- Talmud Book Company borrows $16,000 for 30 days at 9 percent interest. What is the dollar cost of the loan? ( use 360- day a year)
Consider a loan of $90,000 at 4% compounded annually, with 12 annual payments. Find the following. (a) the payment necessary to amortize the loan (b) the total payments and the total amount of interest paid based on the calculated annual payments (c) the total payments and total amount of interest paid based upon an amortization table. (a) The annual payment needed to amortize this loan is $ (Round to the nearest cent as needed.) (b) The total amount of the payments is S (Round to the nearest cent as needed.) The total amount of interest paid is $ (Round to the nearest cent as needed.) (c) The total payment for this loan from the amortization table is $. (Round to the nearest cent as needed.) The total interest from the amortization table is $ (Round to the nearest cent as needed.)
A family has an $80,000, 20-year loan at 8% compounded monthly. (a) if the monthly payment is $669.15 and calculate the total interest paid.
You plan to borrow $33,100 at a 7.0% annual interest rate. The terms require you to amortize the loan with 7 equal end-of- year payments. How much interest would you be paying in Year 2? O a. $2,077.39 b. $2,049.26 c. $6,141.81 d. $2,317.00 e. $5,740.01
Consider a loan of $1,000 for five years with 10% add-on interest and the loan is to be paid off in five year-end payments. The funds that are borrowed (available to the borrower) are $1,000 and the “interest” is $100 × 5 = $500. The installments are calculated based on a loan principal amount of $1,000 + 500 = $1,500: $1,500/5 = $300 each. How much is the borrower really paying to borrow $1,000? Let’s restate this loan in more familiar terms: Present value = $1,000 Number of payments = 5 Amount of each payment = $300 and $1,000 = $300(present value of an annuity for T = 5 and r = ?) What is r=?
Use the following amortization chart: Selling price of home $ 84,000 Down payment $4,000 Principal (loan) $ 80,000 Total cost of interest Rate of interest Years 5.5% 30 Payment per $1,000 $ 5.6779 Monthly mortgage payment $ 454.23 What is the total cost of interest? Note: Do not round intermediate calculations. Round your answer to the nearest whole dollar.
A $150,000 home is financed by a 30-year, 9 percent fixed-rate mortgage loan with 20 percent down payment. What is the amount of interest paid in the first month of the loan? Group of answer choices $702.32 $787.50 $900.00 $1,125.00
You borrow $145,000 and must make annual loan payments of $11,635.18 for 20 years, starting at the end of the year. What interest rate are you being charged? a. 5% b. 7% c. 8% d. 9% e. 6%
To borrow $2,400, you are offered an add-on interest loan at 10.4 percent with 12 monthly payments. Compute the 12 equal payments. Use the amount you borrowed and the monthly payments you computed to calculate the APR of the loan. Then, use that APR to compute the EAR of the loan. Note: Do not round intermediate calculations and round your final answer to 2 decimal places. Equal payment Effective annual rate. %
You plan to borrow $33,600 at a 6.5% annual interest rate. The terms require you to amortize the loan with 7 equal end-of-year payments. How much interest would you be paying in Year 2? O a. $6,126.33 O b. $5,752.43 O c. $2,184.00 O d. $1,927.75 O e. $1,952.05
If you borrow $5,300 at $900 interest for one year, what is your annual interest cost for the following payment plan? (Round the final answers to 2 decimal places.) Effective rate a. Annual payment % b. Semiannual payments % c. Quarterly payments % d. Monthly payments %
You are borrowing $300,000 for 20 years at 4%. Payments will be made monthly. What is the total amount of interest you will pay if you pay the loan as agreed over the 20 years? a. $114,786 b. $124,340 c. $136,306 d. $164,120 e. $196,342

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