The debt is amortized by equal payments made at the end of each payment interval. Compute (a) the size of the periodic payments; (b) the outstanding principal at thetime indicated: (c) the interest paid by the payment following the time indicated; and (d) the principal repaid by the payment following the time indicated for finding theoutstanding principal.Debt Principal$15,000RepaymentPeriod5 yearsPaymentInterval6 monthsInterest Rate6%ConversionPeriodsemi-annually(b) The outstanding principal after the 8th payment is $(Round the final answer to the nearest cent as needed.OutstandingPrincipal After:8th payment(a) The size of the periodic payment is $(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)Round all intermediate values to six decimal places as needed.)(c) The interest paid by the 9th payment is $(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)(d) The principal repaid by the 9th payment is $(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

A loan is a financial arrangement where one party (the lender) provides money or assets to another…

Answered: The debt is amortized by equal payments…

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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Sheridan Company receives a three-year, $9,200, zero-interest-bearing note, and the related present value with a market interest rate of 8% is $7,303.24. The total discount of $1,896.76 under the straight-line method is amortized over the three-year period in equal amounts each year. Therefore, the annual amortization is $1,896.76 ÷ 3 or $632.25. Date of issue End of Year 1 End of Year 2 End of Year 3 Cash Received Click here to view factor tables $0 0 $0 Schedule of Note Discount Amortization Effective Interest Method 0% Note Discounted at 8% Interest Income Discount Amortized $584.26 631.00 681.50 $1,896.76 $584.26. 631.00. 681.50 $1,896.76 Carrying Amount of Note $7,303.24 7,887.50 8,518.50 9,200 Prepare the entry to record the annual interest for years 1 and 2 under the straight-line method and the effective interest method. (Credit account titles are automatically indented when the amount is entered. Do not Indent manually. If no entry is required, select "No Entry" for the…
For a sum of money interetsed at 4% compunded semi- annually for 5 years. a) nominal rate of interest b) the periods rate of interest c) the compunding factors d) the numerical value of compounding factors
The debt is amortized by the periodic payment shown Compute (a) the number of payments required to amortize the debt, (b) the outstanding principal at the time indicated Debt PrincipalDebt Payment Payment Interval Conversion Period monthly Outstanding Principal After: 6th payment Interest Rate $16,000 $1,419 3 months 6% (a) The number of payments required to amortize the debt is Round up to the nearest integer.) (b) The outstanding principal is S (Round the final answer to the nearest cent as needed Round all intermediate values to six decimal places as needed).
A debt of $5643.07 is repaid by payments of $1232.89 in 7 months, $1454.55 in 14 months, and a final payment in 29 months. If interest was 7% compounded semi-annually, what was the amount of the final payment? BEKER
mam.7
An amortization of a debt is in a form of a gradient series of P10,000 on the first year, P9,500 on the second year, P9,000 on the third year, P8,500 on the fourth year. Determine the future amount of the amortization if interest is 0.12.
This questi Consider a loan of $7700 at 6.8% compounded semiannually, with 18 semiannual 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 semiannual payments (c) the total payments and total amount of interest paid based upon an amortization table. (a) The semiannual payment needed to amortize this loan is $ 545.94. (Round to the nearest cent as needed.) (b) The total amount of the payments is $ 9827.07 (Round to the nearest cent as needed.) The total amount of interest paid is $ 2127.07 (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 debt is amortized by the periodic payment shown. Compute (a) the number of payments required to amortize the debt; (b) the outstanding principal at the time indicated. Outstanding Principal After: semi-annualy 6th payment Conversion Payment Debt PrincipalDebt Payment Interval 6 months Interest Rate Period $16,000 $891 (a) The number of payments required to amortize the debt is (Round the final answer up to the nearest whole number. Round allintermediate values to six decimal places as needed.) (b) The outstanding principal is $. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal piaces as needed.)
Amortize Discount by Interest Method On the first day of its fiscal year, Ebert Company issued $12,000,000 of 5-year, 11% bonds to finance its operations. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 12%, resulting in Ebert Company receiving cash of $11,558,459. The company uses the interest method. a. Journalize the entries to record the following: 1. Sale of the bonds. Round amounts to the nearest dollar. If an amount box does not require an entry, leave it blank. 2. First semiannual interest payment, including amortization of discount. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. 3. Second semiannual interest payment, including amortization of discount. Round to the nearest dollar. If an amount box does not require an entry. leave it blank.
Hh.169.
A company borrowed an amount of 400,000 dinars for a period of four years at a compound interest at an annual rate of 5% and pledged to repay the loan and its interest together in equal installments, each of which pays the end of the loan period. Find the following: 1) the value of the fixed payment 2) the form of the loan amortization table rounded to the nearest dinar 3) Calculate the amount Paid after the second payment 4) Calculate the remaining amount after paying the third payment
Original payment of $2266 due today is settled by two equal payments due in 3 and 13 months. Assuming the interest rate is 5% p.a., determine the size of the equal payments.

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