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.PaymentIntervalConversionDebt PrincipalDebt Payment$14,000OutstandingPrincipal After:7th paymentInterest RatePeriod$8751 month12%monthly(a) The number of payments required to amortize the debt is.(Round the final answer up to the nearest whole number. Round all intermediate 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 places as needed.)

Loan Amortization: The process of amortizing a fixed-rate loan into equal installments is known as…

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 Principal Debt Payment $14,000 Payment Interval 1 month Interest Rate 12% Conversion Period monthly Outstanding Principal After:" 7th payment $875 (a) The number of payments required to amortize the debt is (Round the final answer up to the nearest whole number. Round all intermediate 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 places 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. Debt Principal Debt Payment $14,000 Payment Interval 1 month Interest Rate 12% Conversion Period monthly Outstanding Principal After:" 7th payment $875 (a) The number of payments required to amortize the debt is (Round the final answer up to the nearest whole number. Round all intermediate 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 places as needed.)

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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Concept explainers

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.

Question

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.
Payment
Interval
Conversion
Debt PrincipalDebt Payment
$14,000
Outstanding
Principal After:
7th payment
Interest Rate
Period
$875
1 month
12%
monthly
(a) The number of payments required to amortize the debt is.
(Round the final answer up to the nearest whole number. Round all intermediate 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 places as needed.)

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