Required informationIn order to build a new warehouse facility, the regional distributorfor Amazon borrowed $2 million at 13% per year interest.If the company repaid the loan in a lump sum amount after 2 years, what was theamount of interest?The amount of interest was $4.5907 Required information.In order to build a new warehouse facility, the regional distributorfor Amazon borrowed $2 million at 13% per year interest.If the company repaid the loan in a lump sum amount after 2 years, what was theamount of the payment? (You must provide an answer before moving to the nextpart.)The amount of the payment was $ 6,590,796.72

Time value of money concept consider interest for time. Interest= amount* rate * period In absence…

Answered: Required information In order to build…

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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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
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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
Lush Gardens Co. bought a new truck for $58,000. It paid $6,380 of this amount as a down payment and financed the balance at 4.70% compounded semi-annually. If the company makes payments of $1,800 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 13 SUBMIT QUESTION SAVE PROGRESS
Dave Krug finances a new automobile by paying $6,800 cash and agreeing to make 40 monthly payments of $580 each, the first payment to be made one month after the purchase. The loan bears interest at an annual rate of 12%. What is the cost of the automobile? (PV of $1. EV of $1. PVA of $1. and EVA of $1) Note: Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places. Monthly Payment 580 Table Values are based on: Present Value of Loan n = Table Factor $ 40 12% Cash Down Payment 6,800 - Present Value of Loan Cost of the Automobile
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A warehouse is bought at the capitalization ratio of 8.5% for $1,000,000. The buyer used a 65% LTV loan with 6% interest amortized over 15 years, with monthly payments. What is the expected before-tax cash flow for the first year of operations? $19,179 $5,485 Impossible to answer the question from the information provided. $65,821 $85,000
Lush Gardens Co. bought a new truck for $60,000 of this amount 6,000 was paid as a down payment and the balance financed at 5.75% compounded semi annually. If the company makes payments of 1,700 at the end of every month, how long will it take to settle the loan?
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?

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Required information In order to build a new warehouse facility, the regional distributor for Amazon borrowed $2 million at 13% per year interest. If the company repaid the loan in a lump sum amount after 2 years, what was the amount of interest? The amount of interest was $4.5907