Relion Insurance Solutions (RIS) borrowed from Farm Credit Services of America (FCSA) for their expansion that customizes cost estimates of insurance for farming equipment. RIS paid $300,000 for the loan to FCSA after 5 years at a simple interest rate of 10% per year. How much did RIS borrow from FCSA 5 years ago?

Relion Insurance Solutions (RIS) borrowed from Farm Credit Services of America (FCSA) for their expansion that customizes cost estimates of insurance for farming equipment. RIS paid $300,000 for the loan to FCSA after 5 years at a simple interest rate of 10% per year. How much did RIS borrow from FCSA 5 years ago?

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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Similar questions

Golden Dragon Restaurant obtained a $9000 loan at 9% compounded annually to replace some kitchen equipment. What is the size of the final payment if payments of $1800 are made semi-annually? $1335.50 $1800 $1500 $1394.30 $1667.76
A logo design company purchases four new computers for $16,500. The company finances the cost of the computers for 3 years at an annual interest rate of 4.175% compounded monthly. Find the monthly payment (in dollars) for this loan. Round your answer to the nearest cent.
Blackstone Company purchased a new software system costing $35,000. To finance the purchase, Blackstone signed a contract agreeing to pay the cost over the next 8 years, with a payment due every six months; the first payment will be made six months from the date of purchase. Blackstone's usual interest rate is 10%. What is the amount of the payment required (rounded to the nearest dollar)? 's usual 096, What is the amount of the Select one: O a. 16,030 O b. 6,560 O c. 3,229 d. 2,575 e. None of the above
A small business has determined that the machinery they currently use will wear out in 17 years. To replace the new machine when it wears out, the company wants to establish a savings account today. If the interest rate on the account is 1.1 percent per quarter and the cost of the machinery will be $255,000, how much will the company have to deposit today?
EnergyMax Engineering constructed a small office building for their firm 5 years ago. They financed it with a bank loan for $450,000 over 15 years at 6% interest with quarterly payments and compound ing. The loan can be repaid at any time without penalty. The loan can be refinanced through an insur ance firm for 4% over 20 years—still with quarterly compounding and payments. The new loan has a 5% loan initiation fee, which will be added to the new loan. (a) What is the balance due on the original mort gage (20 payments have been made in the last 5 years)? (b) How much will Energy Max's payments drop with the new loan? (c) How much longer will the proposed loan run?
A company has had record profits and decided to use some of the profits to pay for manufacturing improvements. If the company can invest $1,600,000.00 in an a annuity will that will make payments at the beginning of every six months for 4 years. If the annuity pays 5.6%, compounded semi-annual. What is the size of payments that the company can expect?The payment amount will be $. (Round to 2 decimal places.)
Pharoah Productions borrowed some money from the California Finance Company at a rate of 15.40 percent for a seven-year period. The loan calls for a payment of $1,639,000 each year beginning today. How much did Pharoah borrow?
Lush Gardens Co. bought a new truck for $52,000. It paid $4,160 of this amount as a down payment and financed the balance at 4.43% compounded semi-annually. If the company makes payments of $1,600 at the end of every month, how long will it take to settle the loan? o years o months Express the answer in years and months, rounded to the next payment period
You purchased a new washer and dryer for $1,297.07 (including sales tax and delivery). Financing was used for the full purchase price and the payments are $141.43 per month for 11 months. What is the cost for the loan?
The Unisam University group in Peru, recently bought 70 Lenovo brand Core i7 touchscreen high-definition ultrabook personal computers so that the classrooms of the Faculty of Business Sciences are adapted to technology. Said purchase was financed by a line of credit with a computer equipment supplier and the total amount of $126,500.00, the acquired debt will be amortized through 8 equal quarterly payments. Find the value of the payment (installment) if the interest rate is 24.5% compounded quarterly and build the respective amortization table

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