Answered: Taraz Aina is obligated to make the… | bartleby

CONCEPTS IN FED.TAX.,2020-W/ACCESS

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter5: Introduction To Business Expenses

Section: Chapter Questions

Problem 61P

See similar textbooks

Related questions

Question

Please need answer the accounting question

Taraz Aina is obligated to make the following payments to a
loan company:
Right Now
$7,500
At the end of one year
$15,000
$22,500
At the end of two years
At the end of three years $75,000
The interest rate on the loan is 12% compounded annually,
and there is no penalty for early payment.
How much must Taraz Aina pay right now in order to
completely satisfy her obligation under this loan?

Expert Solution

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Blurred answer

Similar questions

) Signe owes $19,561 on her credit card. Calculate the monthly payment if the credit card APR is 18% and Signe pays it off in three years. Assume no additional charges are made to the card. LSS-Comp SP LSS-Cont O O LP
Margo borrowis 51700 , agreeing to pay it back with 48 annual interest after 11 months. How much interest will she pay?
Nine months ago, Muriel agreed to pay Aisha $1,900 and $801 on dates 6 and 12 months, respectively, from the date of the agreement. With each payment Muriel agreed to pay interest at the rate of 8 1/2% from the date of the agreement. Muriel failed to make the first payment and now wishes to settle her obligations with a single payment four months from now. What payment should Aisha be willing to accept if money can earn 6 1/2 %? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Payment $
Bozo owes $5000 due in one year and $7,000 due in seven years. Unfortunately Bozo is unable to meet the $5000 obligation. By mutual consent with the lender Bozo is allowed to pay off both loans after 3 years at 8% monthly. How much does Bozo pay?
A couple borrows $935,000 for 7 years for the purchase of a vacation home at interest rate of 7 percent. The loan requires that the interest and principle be paid in equal, annual payments. The interest is determined on the declining balance that is owed. What are the required annual payments on the loan? How much is the principal loan balance reduced by during the first year?
Leon's 6-month premium for auto insurance is $754.34, if he pays it all at once. If he decides that he wants to make payments, he will be charged a surcharge of $4 for each of the first 4 months, upon which time the 6-month premium needs to be paid in full. What is his premium for each of the first four months if he decides to pay the minimum? 6. а. $189.59 b. $192.59 С. $758.34 d. $126.72
Betty Kay has a contract under which she will receive the following payment for the next 5years: $1,000, $2,000, $3,000, $4,000 and $5,000. She will then receive an annuity of $8,500a year for the end of the 6th through the end of the 15th year. She is offered $30,000 to cancelthe contract. If the payments are discounted at 14 percent should she cancel the contract? Showall workings.
Ellery purchases a home with a loan of R149 000. The 30-year loan term and 7,5% interest rate apply to the home loan. Every month, payments are made. How much interest will he pay overall if he purchases the house in accordance with the terms of the loan? a. b. C. d. R226 059 R138 086 R486 160 R375 489
Gisella borrows $120, 000 from Capital Mortgage Co. at 9% per annum interest, monthly payments for 30 years. At the end of 6 years, she sells the house and will pay off the loan at the closing of sale (assume that the sale takes place at the end of the sixth year). What will her loan payoff be? Using excel functions only and an amortization schedule.
Curtis buys a piece of commercial property for $230,000. He is offered a 20-year loan by the bank, at an interest rate of 9% per year. The loan requires annual payments to be made. What is the annual loan paymen Curtis must make assuming the first payment will be due one year from the date of purchase? O A. $40,313.10 O B. $30,234.83 O C. $35,273.97 O D. $25,195.69 O Time Remaining: 00:29:43 Next dtv 11 DD F11 F9 F10 F8 F7 F5 esc F4 F2 F3 F1 & @ 2# $ % 8 1 3. 4 { P < CO
Marilyn Ho borrowed $24,000 from Stewart Financial Enterprises. She was required to make sixteen equal payments of principal. These were to be made annually with the first payment due exactly one year after she received the $24,000. Ms. Ho also had to make annual payments of interest to the loan holder at an annual effective rate of 8.5%. Immediately after the loan is made, Brady Investment Corporation purchases the right to receive all of Ms. Ho's payments from Stewart Financial Enterprises. The price paid by Brady Investment Corporation resulted in Brady having a 7% annual yield on their sixteen-year investment. Find the price that Brady Investment Corporation paid Stewart Financial Enterprises.ned liv
Angelica received a 12-year non-subsidized student loan of $18,000 at an annual interest rate of 5.6% (compounded monthly). She will begin repaying the loan after she graduates in 4 years. (a) How much interest must she pay on the loan during the period of time that payments on the loan are not being made? (Round your answer to the nearest cent.) (b) Determine her monthly payment on the loan. (Round your answer to the nearest cent.)

SEE MORE QUESTIONS

Recommended textbooks for you

CONCEPTS IN FED.TAX., 2020-W/ACCESS

CONCEPTS IN FED.TAX., 2020-W/ACCESS

Accounting

ISBN:

9780357110362

Author:

Murphy

Publisher:

CENGAGE L

Excel Applications for Accounting Principles

Excel Applications for Accounting Principles

Accounting

ISBN:

9781111581565

Author:

Gaylord N. Smith

Publisher:

Cengage Learning

SWFT Comprehensive Volume 2019

SWFT Comprehensive Volume 2019

Accounting

ISBN:

9780357233306

Author:

Maloney

Publisher:

Cengage

CONCEPTS IN FED.TAX., 2020-W/ACCESS

CONCEPTS IN FED.TAX., 2020-W/ACCESS

Accounting

ISBN:

9780357110362

Author:

Murphy

Publisher:

CENGAGE L

Excel Applications for Accounting Principles

Excel Applications for Accounting Principles

Accounting

ISBN:

9781111581565

Author:

Gaylord N. Smith

Publisher:

Cengage Learning

SWFT Comprehensive Volume 2019

SWFT Comprehensive Volume 2019

Accounting

ISBN:

9780357233306

Author:

Maloney

Publisher:

Cengage

Financial Accounting Intro Concepts Meth/Uses

Financial Accounting Intro Concepts Meth/Uses

Finance

ISBN:

9781285595047

Author:

Weil

Publisher:

Cengage

SEE MORE TEXTBOOKS