Otto Company borrows money on January 1 and promises to pay it back in four semiannual payments of $30,000 each on June 30and December 31 of both this year and next year. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from thetables provided. Round "Table Factor" to 4 decimal places.)1. How much money is Otto able to borrow if the Interest rate is 2%, compounded semiannually?2. How much money is Otto able to borrow If the Interest rate is 6%, compounded semiannually?3. How much money is Otto able to borrow if the Interest rate is 8%, compounded semiannually?Complete this question by entering your answers in the tabs below.Required 1 Required 2Required 3How much money is Otto able to borrow if the interest rate is 2%, compounded semiannually?Periodic Cash FlowTable FactorPresent Value

Present value = Periodic cash flow * Present value annuity factor.2. Present value factor is…

Answered: Otto Company borrows money on January 1…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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You have taken a loan of $6,000.00 for 3 years at 2.9% compounded monthly. Fill in the table below: (Round all answers to 2 decimal places.) Payment number Payment amount Principal Amount Interest Balance 0) $6,000.00 1) $ 2) 3) $ $
A radio commercial for a loan company states: "You only pay 36¢ a day for each $500 borrowed." If you borrow $2,710 for 162 days, what amount will you repay, and what annual interest rate is the company actually charging? (Assume a 360-day year.) a. Amount you repay=$(Round to two decimal places.) ID
Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank in the amount of $550,000. The terms of the loan are 3.7% annual interest rate and payable in 8 months. Interest is due in equal payments each month. A. Compute the interest expense due each month. If required, round final answer to two decimal places. $fill in the blank 923b18021034fe7_1 B. Show the journal entry to recognize the interest payment on October 20, and the entry for payment of the short-term note and final interest payment on May 20. If required, round final answers to two decimal places. If an amount box does not require an entry, leave it blank. Oct. 20 fill in the blank 848f66019ffe028_2 fill in the blank 848f66019ffe028_3 fill in the blank 848f66019ffe028_5 fill in the blank 848f66019ffe028_6 May 20 fill in the blank 848f66019ffe028_8 fill in the blank 848f66019ffe028_9 fill in the blank 848f66019ffe028_11 fill in the blank…
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 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.
Otto Company borrows money on January 1 and promises to pay it back in four semiannual payments of $17,000 each on June 30 and December 31 of both this year and next year. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places.) 1. How much money is Otto able to borrow if the interest rate is 2%, compounded semiannually? 2. How much money is Otto able to borrow if the interest rate is 6%, compounded semiannually? 3. How much money is Otto able to borrow if the interest rate is 8%, compounded semiannually? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 How much money is Otto able to borrow if the interest rate is 2%, compounded semiannually? Periodic Cash Flow Table Factor Present Value
On June 2, Fat Tires Ltd. borrowed $10,000.00 with an interest rate of 7.6%. The loan was repaid in full on November 14, with payments of $2700 00 on September 1 and $3300.00 on October 3. What was the final payment? The final payment was $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed)
Arjun took out a loan for $9,800 from Bank of Montreal at 2.08% compounded monthly, and will be making payments at the end of the month for the next 10.5 years to repay the loan. Answer the following questions, and round all answers to two decimal places if necessary. 1) What is the amount of each payment? P/Y = PV = $ C/Y = PMT = $ Total amount paid = $ Interest paid = $ Submit Question N = FV = $ 2) What is the total sum of money that Arjun will eventually pay to clear the loan? 3) What will be the total amount of interest paid? (enter a positive value) I/Y= (enter a positive value) %

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