Splish Company purchased a machine at a price of $95,600 by signing a note payable, which requires a single payment of $139,968 in 4 years. Click here to view factor tables Assuming annual compounding of interest, what rate of interest is being paid on the loan? (Round answer to O decimal places, eg. 13%.) Rate of interest

Splish Company purchased a machine at a price of $95,600 by signing a note payable, which requires a single payment of $139,968 in 4 years. Click here to view factor tables Assuming annual compounding of interest, what rate of interest is being paid on the loan? (Round answer to O decimal places, eg. 13%.) Rate of interest

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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Consider a loan of $90,000 at 4% compounded annually, with 12 annual payments. Find the following. (a) the payment necessary to amortize the loan (b) the total payments and the total amount of interest paid based on the calculated annual payments (c) the total payments and total amount of interest paid based upon an amortization table. (a) The annual payment needed to amortize this loan is $ (Round to the nearest cent as needed.) (b) The total amount of the payments is S (Round to the nearest cent as needed.) The total amount of interest paid is $ (Round to the nearest cent as needed.) (c) The total payment for this loan from the amortization table is $. (Round to the nearest cent as needed.) The total interest from the amortization table is $ (Round to the nearest cent as needed.)
The interest rate on a $15,300 loan is 9.7% compounded semiannually. Semiannual payments will pay off the loan in nine years. (Do not round intermediate calculations. Round the PMT and final answers to 2 decimal places.) a. Calculate the interest component of Payment 12. $ b. Calculate the principal component of Payment 5. Principal c. Calculate the interest paid in Year 8. Interest paid d. How much do Payments 5 to 8 inclusive reduce the principal balance? Principal reduction Interest
Sheridan Service has a line of credit loan with the bank. The initial loan balance was $7000.00. Payments of $2500.00 and $3000.00 were made after five months and nine months respectively. At the end of one year, Sheridan Service borrowed an additional $4000.00. Ten 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 bakeshop obtains a loan of P500,000 with interest at 8% compounded quarterly for the construct of a new branch in Angeles, City. The owner will repay the loan by payments made quarterly for 2 ½ years. Create an amortization schedule to answer the following questions. 1.How much is the total interest? 2.How much is the present outstanding balance on the 7th payment period? 3.How much principal repayment paid in the 9th payment period? 4.How much is the interest paid in the 5th payment? 5.Find the quarterly payment.
CZ Enterprises borrows $202,775 at an interest rate of 10% today and will repay this amount by making 10 semiannual payments. Payments begin in six months. What is the amount of the payments that CZ will need to make? (Use the present value and future value tables, a financial calculator, a spreadsheet or the formula method for your calculations. If using present and future value tables or the formula method, use factor amounts rounded to five decimal places, X.XXXXX. Round your final answer to the nearest cent, $X.XX.) CZ will need to make payments of $ 26,260.31.
A loan of $1980 can be repaid in 145 days by paying the principal sum borrowed plus $55 interest. What was the rate of interest charged? The interest rate is%. (Round the final answer to two decimal places as needed. Round all intermediate values to six decimal places as needed.)
Your company is planning to borrow $1 million on a 5-year, 11%, annual payment, fully amortized term loan. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below. Open spreadsheet What fraction of the payment made at the end of the second year will represent repayment of principal? Do not round intermediate calculations. Round your answer to two decimal places. %
Henry Taylor is settling a $18,000 loan due today by making 6 equal annual payments of $3,893.68. Click here to view factor tables What payments must Henry Taylor make to settle the loan at an interest rate of 8%, but with the 6 payments beginning on the day the loan is signed? (Round factor values to 5 decimal places, eg. 1.25124 and final answers to O decimal places, e.g. 458,581.) Payments 24

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