On January 1, 2006, Mr. Jones took out a loan amounting to $10,000.He then made annual repayments of $1,000 on the first day of2007, 2008, and 2009. Additionally, on July 1, 2009, he made an extrapayment of $5,000 and ceased any further repayments. Assuming thequarterly discount rate is 8%, calculate the remaining balance of Mr.Jones's loan as of January 1, 2015.

The objective of the question is to calculate the remaining balance of Mr. Jones's loan as of…

Answered: On January 1, 2006, Mr. Jones took out…

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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On September 1, the home mortgage balance was $262,000 for the home owned by Kim Thompson. The interest rate for the loan is 8 percent. Assuming that Kim makes the September monthly mortgage payment of $2620 , calculate the following: (a) The amount of interest included in the September payment (round your answer to the nearest cent). (b) The amount of the monthly mortgage payment that will be used to reduce the principal balance. (c) The new balance after Kim makes this monthly mortgage payment.
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On May 6, Jim Ryan borrowed $14,000 from Lane Bank at 7 1/2% interest. Jim plans to repay the loan on March 11. Assume the loan is on ordinary interest. How much will Jim repay on March 11? (Use Days in a year table.) (Round your answer to the nearest cent.) Jim Repay
s

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