On May 3, 2020, Leven Corporation negotiated a short-term loan of $885,000. The loan is due October 1, 2020, and carries a 6.90%interest rate. Use ordinary interest to calculate the interest.What is the total amount Leven would pay on the maturity date? (Use Days in a year table.)Note: Do not round intermediate calculations. Round your answer to the nearest cent.X Answer is complete but not entirely correct.Maturity value$ 910,095.21 XReturn to question

Answered: On May 3, 2020, Leven Corporation…

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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A mortgage borrower has an outstanding debt at interest rate of J12= 9,08% and 1.158 TL monthly payments for 70 months remaining today. Another bank is offering the same monthly payments but for 64 months only at a lower interest rate. For the refinancing, borrower has to pay 1.900 TL expense today. Decide if the borrower should refinance the debt or not by showing the difference of discounted values of two alternatives. (hint: you must use the same interest rate for discounting two options to be able to compare)
Liz Rogers just closed a $320,000 fixed-rate mortgage loan. The stated mortgage interest rate is 3.375% per year. The loan is to be repaid in 180 equal, consecutive, monthly, and end-of-month payments. The first monthly payment is due on July 31, 2020. Ignore all closing costs. How much of the payment to be made in August 2029 will represent the interest payment?
A borrower has two alternatives for a loan: (1) issue a $300,000, 120-day, 8% note or (2) issue a $300,000, 120-day note that the creditor discounts at 8%. Assume a 360-day year. a. Calculate the amount of the interest expense for each option.$ for each alternative. b. Determine the proceeds received by the borrower in each situation. (1) $300,000, 120-day, 8% interest-bearing note $ (2) $300,000, 120-day note discounted at 8% $ c. Alternative is more favorable to the borrower because the borrower .
56. subject:- accounting
Answer the given problem below. Attach a complete solution. Determine the exact simple interest on P150 000 for the period June 25, 2005 to September 2, 2006, if the rate of interest is 12% per year?
Need Detailed answer with steps please 30. Considering the following information, what is the NPV if the borrower refinances the loan? Expected holding period: 3 years, Current loan balance: $100,000; Current loan interest: 7%; Current loan mortgage payment: $898.33; Remaining term on current mortgage: 15 years; New loan interest: 5.5%; New loan mortgage payment: $817.08; New loan term: 15 years; Cost of refinancing: $5,000. Assume that the opportunity cost is the interest rate on the new loan (5.5%). A. -$5,000.00 B. -$1,155.27 C. $3,844.73 D. $8,844.73
2. A loan amounting to P1.5 million was secured dated, June 1, 2010. The loan should be paid by means of 60 equal payments to be made at the end of each month, with the first payment due on June 30, 2010. The interest rate is 15% compounded monthly. a. Determine the required monthly payments to retire the debt. b. Show the first five rows of the amortization table corresponding to this loan.
Consider a student loan of $12,500 at a fixed APR of 12%for 25 years. What is the monthly payment?(Do not round until the final answer. Then round to the nearest cent as needed.) The total payment over the term of the loan is?(Round to the nearest cent as needed.) Of the total payment over the term of the loan %? is paid toward the principal and %? is paid toward interest.
A payday loan is structured to obscure the true interest rate you are paying. For example, in Washington, you pay a $30 "fee" for a two-week $200 payday loan (when you repay the loan, you pay $230). What is the effective annual interest rate for this loan? (Assume 26 bi-weekly periods per year.) The effective annual interest rate is%. (Round to two decimal places.)
A floating rate mortgage loan is made for $185,000 for a 30-year period at an initial rate of 12 percent interest. However, the borrower and lender have negotiated a monthly payment of $1,480. Required: a. What will be the loan balance at the end of year 1? b. If the interest rate increases to 13 percent at the end of year 2, how much is the payment plus negative amortization in year 2 and year 5 if the payment remains at $1,480?
What is the yield to maturity (YTM) on a simple loan for $1,500 that requires a repayment of $4,500 in five years' time? The yield to maturity is 24.6 %. (Round your response to one decimal place.)
A $178,000 mortgage loan is offered at an APR of 4%. Follow the instructions below the table. The loan payment formula was used to calculate the monthly payments for the loans and results are reported in the table below. You do NOT have to verify the given payment entries (you already used the formula for calculating payments in the first part Loan term in years Monthly Payment on $178,000 loan (in $) Total amount paid back over the full loan term (in $) Interest over the full loan term (in $) Difference in monthly payment from option above (in $) t = 15 years Pmt = $ 1316.64 F = I = No entry here t = 30 years Pmt = $ 849.80 F = I = Difference in MONTHLY payment t = 40 years Pmt = $ 743.93 F = I = Difference in MONTHLY payment t = 50 years Pmt = $ 686.56 F = I = Difference in MONTHLY payment For each loan term option, calculate the total amount paid back over the…

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