Ted's Machine Shop purchased a computer to use in tuning engines. To finance the purchase, the company borrowed $18,500 at 4% compounded semi-annually Torepay the loan, equal monthly payments are made over four years, with the first payment due two years after the date of the loan. What is the size of each monthlypayment?SIDEThe size of each monthly payment is s(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed)

Principal amount P = $18,500 Interest rate r = 4% Semi annual interest s = 4%/2 = 2% Principal…

Answered: Ted's Machine Shop purchased a computer…

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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Similar questions

to purchase a home a couple borrowed $280,000 at 5.1% compounded monthly for 25 years. after making 70 payments of $1653. 21 they plan to refinance at 4.2% compounded monthly for 15 years , with refinancing costs of $1100 added to the new loan. a) Find the amount refinance b) find the new monthly statement. c) If payments are $2000 per month on the refinance loan, how long will it take to pay off the loan? d) How much is saved in total by refinancing and making monthly payments of $ 2000 on the financing amount?
The Taylors have purchased a $310,000 house. They made an initial down payment of $40,000 and secured a mortgage with interest charged at the rate of 10%/year on the unpaid balance. Interest computations are made at the end of each month. If the loan is to be amortized over 30 yr, what monthly payment will the Taylor's be required to make? (Round your answers to the nearest cent.) monthly payment $ What is their equity (disregarding appreciation) after 5 yr? After 10 yr? After 20 yr? equity after 5 yr $ equity after 10 yr $ equity after 20 yr $
John received a loan of $40,500, 6 years ago. The interest rate charged on the loan was 4.68% compounded quarterly for the first 6 months, 5.46% compounded semi-annually for the next 2 years, and 5.88% compounded monthly thereafter. a. Calculate the accumulated value of the loan at the end of the first 6 months. Round to the nearest cent b. Calculate the accumulated value of the loan at the end of the next 2 year period. Round to the nearest cent c. Calculate the accumulated value of the loan today. Round to the nearest cent d. Calculate the amount of interest charged on this loan over the past 6 years. jamie wants to double his money in 9 years in an investment fund. What quarterly compounding interest rate do you suggest that he looks for?
You bought a used car for $4,000.00 at a nominal interest rate of 6%. You agreed to pay for the car in 12 equal monthly payments, beginning with the first payment at the time of the purchase of the car. b) Immediately after making the sixth payment, you made an arrangement with the company to pay back the rest of the loan with one single payment at the time when the seventh payment was due. What is your seventh payment?
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.
Langara Woodcraft borrowed money to purchase equipment. The loan is repaid by making payments of $902.51 at the end of every six months over five years. If interest is 6.4% compounded monthly, what was the original loan balance?
A farmer bought a rice harvester worth ₱ 1.45 M if paid in cash. The tractor may be purchased by installment to be paid within five years. Money is worth 8% compounded annually. Determine the amount of each annual payment if all payments are made (a) at the end of each year, and (b) at the beginning of each year
A friend of yours is interested in purchasing a motor vehicle with at a cost of $3.5 million. The bank has indicated that they are willing to finance 80% of the purchase price at a rate of 12% p.a. over 4 ½ years with equal monthly repayments. Your friend has asked you to Compute the required monthly payments. (round to the nearest dollar) Prepare the Loan amortization schedule for the first 4 months (round to the nearest dollar). Determine how much would be required to close the loan after 2 ½ years.
Use either the tables from Appendix E in your textbook or a financial calculator for this question. Libby Company purchased equipment by paying $5,000 cash on the purchase date and agreeing to pay $5,000 every six months during the next four years. The first payment is due six months after the purchase date. Libby's borrowing rate is 8%. The liability reported on the balance sheet as of the purchase date, after the initial $5,000 payment was made: Select the answer that is closest to (within $250 above or below) what you calculated. If an answer is more than $250 away from what you calculated, you should consider it incorrect. Group of answer choices A)$45,000 B)$33,664 C)$38,664 d)$40,000 e)None of the above

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