A bank loan amounting to P100,000 was obtained on October 1. The loan and 10% interest are payable in 6 months.
Q: A debt of P 30,000 was paid for as follows: P 4,000 at the end of 3 months, P 5,000 at the end of 12…
A: Present Value refers to the value of cash flows today which is to be received at some future time…
Q: Emily company browsed $ 600,000 from Tally Bank with a 12% interest rate loan, with 20% compensating…
A: Compensating balance is the minimum balance that has to be maintained by the borrower in a bank…
Q: Idaho International Inc. borrows $86,600 from a bank at 3.08% compounded semi-annually for 7 years…
A: Here,Compound = Semiannually = 2Present Value = pv = $86,600Interest Rate = r = 3.08 / 2 = 1.54%Time…
Q: A loan of $10200 is to be amortized with quarterly payments over five years. The interest on the…
A: A bond is said to be amortized if its principal (face value) on the debt as well as its interest…
Q: the effective interest rate if the actual interest rate 3 months from now is 8%
A: Effective Interest Rate: Effective interest rate is the real return on any interest paying…
Q: An $90,000 loan is amortized by payments of $1850 at the end of every six months at a rate of 2%…
A: A mortgage loan is a type of loan where funds are availed against an asset as collateral to the…
Q: On 01/09/20x1 the company received an interest-bearing loan of 12000 euros for a period of 8 months.…
A: Interest Amount = Loan amount x rate of interest x no of days or months/total days or months Given…
Q: Accounting for Current Liabilities A note payable is issued for a face value of $100,000. The…
A: Note payable refers to the written agreement made between two parties in which the cash is paid by…
Q: A $23,300 loan is to be settled by making payments of $7,460 at the end of every six months. The…
A: Present Value of annuity is used to calculate the loan periodic payments. To calculate number of…
Q: BALR Corp.borrows $600,000 to be paid off in three years. The loan payments are semiannual with the…
A: Loan payments are semiannual. Thus, the semiannual interest rate should be considered i.e. 6%/2=3%.…
Q: A loan of $12,068 was repaid at the end of 16 months. What size repayment check (principal and…
A: To calculate the repayment amount for a loan with interest, use the following formula :where:A is…
Q: A company has a $500,000 30 year fixed loan payable at an interest rate of 4% monthly loan payments…
A: The entry for first month loan payment are as follows
Q: You borrow $1,000 from the bank and agree to repay the loan over the next year in 12 equal…
A: The Present Value of Ordinary Annuity refers to the concept which gives out the discounted or…
Q: An amount of $13,000 is borrowed from the bank at an annual interest rate of 14%. a. Calculate the…
A: Amount borrowed - $ 13,000 Annual interest rate - 14% Loan period - 4 years
Q: A bank makes a loan of $10,000. The loan will be paid back after 10 years with yearly payments of…
A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…
Q: A loan is repaid by making payments of $2000 at the end of every six months for 12 years. If…
A: Semiannual payment (c) = $2000 Semiannual period (n) = 24 (i.e. 12 years * 2) Nominal interest rate…
Q: A company borrows $171,000 from a bank. The interest rate on the loan is 6 percent compounded…
A: Loan amount = $171,000Interest =6%Number of years = 5 years
Q: A loan for $36, 000 was obtained to be paid off over 5 years at 5.5% P. A with monthly repayments. a…
A: First, the present value annuity formula can be employed to determine the monthly payment (PMT).…
Q: A $8,000 CD is purchased through a local bank that pays 3.50% interest compounded quarterly for…
A: A CD (Certificate of Deposit) is a type of financial product offered by banks and credit unions,…
Q: solve the following using the concept of amortization 1.Show the amprtization schedule for a loan…
A: Amortization Schedule: It is a complete periodic loan payment that helps in showing the interest and…
Q: A loan of $ 8500 is to be repaid in 39 equal monthly installments with the first one paid seven…
A: Here borrowers understand how much they need to budget each month to repay their loan within a…
Q: A business loan worth Php 1,000,000 is to be repaid quarterly in 2 years . The interest rate is 10%…
A: in this we have to find present value FACTOR and find quarterly payment and solve remaining part.
Q: A company borrows $126,500 from a bank. The interest rate on the loan is 10 percent compounded…
A: Loans are paid by periodic payments and these are fixed payment that carry the payment of interest…
Q: A business loan of 800,000 is to be repaid in full after 2 year. What is the amount to be paid if…
A: Loan = 800,000 N = 2 years Effective rate of interest = 8%
Q: wed $300,000. The loan will to be repaid over the next three years with six semiannual payments,…
A: The semiannual payment plan seeks to provide more manageable and predictable cash flow for both…
Q: LOA Bank Limited quotes a 9 percent interest rate on loans for 1 year. You are seeking a loan of…
A: The rates which are charged by the bank to the borrower on taking loan from the bank is referred as…
Q: Ackerman Company enters into an IRG arrangement with Westbank for a 9 months, $800,000 loan starting…
A: nominal interest = 8% no. of compounding periods =12/3…
Q: A loan of $14,865 was repaid at the end of 7 months. What size repayment check (principal and…
A: Given, Loan amount $14865 term is 7 months Annual rate is 8%
Q: is amortized by level payments made at the end of each quarter for 25 years.Tge monthly rate is…
A: Amortization refers to the breakdown of loan payments into principal and interest portions. It…
Q: Calculate the amount obtained for the following loans a) RM 2,500 with interest 7.5% compounded…
A: FUTURE VALUE IS THE VALUE OF PRESENT AMOUNT COMPOUNDED TO FUTURE DATE formula: Fv =PV×1+RMM×N where,…
Q: Loan amount is Rs. 10,000, to be repaid in 5 equal monthly payments of principal and interest.…
A: A Flat rate of interest refers to the amount of interest is fixed over time. In this method, the…
Q: A bank made a $10,000 four-year auto loan paying 7 percent interest annually, The YTM for the loan…
A: Macaulay Duration:The Macaulay Duration is a crucial tool for investors to assess the interest rate…
Q: A client is given a loan of principal amount of R50,000 which accrues interest of 10% per annum,…
A: A loan is a financial arrangement in which the borrower get a lump sum amount and paid it in future…
Q: Quarter-end payments of $1,490 are made for 8 years to settle a loan of $31,880. What is the…
A: Compound = n = Quarterly = 4Payment = pmt = $1490Time = nper = 8 * 4 = 32Present Value of Loan = pv…
Q: How much interest is paid in total on a 3-year loan for $30 000? The interest rate is 8.7%…
A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…
Q: Prepare anamortization schedule for a $50,000 loan that pays10% interest annually for five…
A: Borrowings are the liability of the company which is used to finance the requirement of the funds.…
Q: 17. Bremen Company borrows $350,000 to be repaid in equal installments over a period of eight years.…
A: Laon amortization schedule means where repayment during the life of loan is written with interest.…
Q: A $24,100 loan is to be settled by making payments of $6,980 at the end of every 3 months. The…
A:
Q: A loan of amount $15560.21 is repaid in 15 annual payments beginning 1 year after the loan is made.…
A: Loan = $15,560.21Interest rate = 5.1%First 6 payments = $1,000Final 9 payments = $2,000
Q: Calculate the interest to be paid on a loan of $80,000, for 90 days, at 9.5%
A: Given Principle = 80000 Rate = 9.5%
Step by step
Solved in 2 steps with 1 images
- Bank JPX is offering personal loans of $35,000 to be repaid over 6 years with payments of $625 per month. The first loan payment occurs one month after borrowing the $35,000. What effective annual rate (EAR) are they charging on this loan?Sheridan Service has a line of credit loan with the bank. The initial loan balance was $8000.00. Payments of $3000.00 and $4000.00 were made after four months and eight months respectively. At the end of one year, Sheridan Service borrowed an additional $5000.00. Six months later, the line of credit loan was converted into a collateral mortgage loan. What was the amount of the mortgage loan if the line of credit interest was 7% compounded monthly? The amount of the loan is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)A loan of 25,000 is being repaid with annual payments of 2,243 at the end of the year. The interest rate on the loan 7.5%. Calculate the interest in the 5th payment (rounded to nearest tens).
- Olfert Inc. is repaying a loan of $52500.00 by making payments of $4700.00 at the end of every six months. If interest is 7.5% compounded semi-annually, the outstanding balance after the first, second, third payment will be respectively: O 49268.75, 47565.08 and 43995.14 O 49768.75, 45015.08 and 42105.48 49768.75, 46935.08 and 43995.14 O48425.12, 45238.21 and 42355.23 Mrs. Robinson madeA company lends its supplier $154,000 for 3 years at a 10% annual interest rate. Interest payments are to be made twice a year. The entry to record the establishment of the loan includes a debit to: Multiple Choice Interest Receivable and a credit to Interest Revenue for $7700. Notes Receivable and a credit to Cash for $154,000. Cash and a credit to Notes Payable for $154,000. Cash and a credit to Interest Revenue for $15,400.A loan of £70,000 is repaid in 18 annual instalments of £6,400,with the first repayment due in one year.What is the interest rate?
- A company borrows $159,600 from a bank. The interest rate on the loan is 6 percent compounded semiannualy. The company agrees to repay the loan in equal semiannualy installments over the next five years. The first payment is to be made six months from now. (Use factor table in Appendix B for calculation) Required 1: What is the amount of each semiannual payment? $ Required 2: In the first payment, what is the amount of interest cancelled? $ Required 3: In the fifth payment, what is the amount of loan paid net of interest? $ Required 4: In the last payment, what is the amount of interest cancelled? $ Required 5: Assume the debt contract has the option to make one extraordinary payment of up to 20% of the principal. If the company decides to exercise the right and make the extra payment together with the 8th payment, how much it must pay in dollars at the 9th payment to pay off the loan? $BALR Corp.borrows $500,000 to be paid off in three years. The loan payments are semiannual with the first payment due in six months, and interest is at 6%. What is the amount of each payment?A bank is offering to sell 6-month certificates of deposit for $12,000. At the end of 6 months, the bank will pay $13,000 to the certificate owner. Compute the nominal annual interest rate and the effective annual interest rate.
- A company borrows $159,300 from a bank. The interest rate on the loan is 6 percent compounded semiannualy. The company agrees to repay the loan in equal semiannualy installments over the next five years. The first payment is to be made six months from now. (Use factor table in Appendix B for calculation) Required 1: What is the amount of each semiannual payment? $ Required 2: In the first payment, what is the amount of interest cancelled? $ Required 3: In the fifth payment, what is the amount of loan paid net of interest? $ Required 4: In the last payment, what is the amount of interest cancelled? $ Required 5: Assume the debt contract has the option to make one extraordinary payment of up to 20% of the principal. If the company decides to exercise the right and make the extra payment together with the 8th payment, how much it must pay in dollars at the 9th payment to pay off the loan? $A loan of R22 000 is granted at 14% pa effective. The loan is to be amortized by forty-two consecutive equal monthly payments Rx. If the first payment is made ten months after the loan is granted, then Rx (rounded to the nearest cent) is equal to:Determine the annual payment on a OMR 500,000 and 12 percent business loan from a commercial bank that is to be amortized over a five year period.