Tricana Corporation borrowed $75,000.00 at 3% compounded monthly for 14 years to buy a warehouse. Equal payments are made at the end of every month.(a)(b)(c)(d)Determine the size of the monthly payments.Compute the interest included in payment 23.Determine the principal repaid in payment period 79.Construct a partial amortization schedule showing details of the first three payments, the last three payments, and totals.(a) The size of the monthly payment is $(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)(b) The interest included in payment 23 is $.(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)(c) The principal repaid in payment period 79 is $.(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)(d) Complete the table below for the first three payments in the schedule.(Do not round until the final answer. Then round to the nearest cent as needed.)Payment NumberAmount PaidInterest PaidPrincipal RepaidOutstanding Principal Balance$75,000.001

Borrowed amount is $75,000.00 Interest rate is 3% compounded monthly Time period is 14 years To…

Answered: Tricana Corporation borrowed $75,000.00…

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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Ontario Credit Union borrowed $275,000 at 9.5% compounded semi-annually from League Central to build an office complex. The loan agreement requires payment of interest at the end of every 6 months In addition, the credit union is to make equal payments into a sinking fund so that the principal can be retired in total after 20 years Interest earned by the fund is 8% compounded semi-annually (a) What is the semi-annual interest payment on the debt? (b) What is the size of the semi-annual deposits into the sinking fund? (c) What is the total annual cost of the debt? (d) What is the interest earned by the fund in the 32nd payment interval? (e) What is the book value of the debt after 16 years? (f) Prepare a partial sinking fund schedule showing details, including the book value of the debt, for the first three payments, the last three payments, and the totals. (a) The interest payment is $ (Round the final answer to the nearest dollar as needed. Round all intermediate values to six decimal…
The Strug Company purchased office furniture and equipment for $8,600 and agreed to pay for the purchase by making five annual installment payments beginning one year from today. The installment payments include interest at 8%. What is the required annual installment payment? Note: Use tables, Excel, or a financial calculator (EV of $1. PV of $1, EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) Multiple Choice $1,994 $1720 $1,466 $2.154
Your company purchased $95,000 of equipment $15,000 cash downpayment and the rest with a note. The equipement has ten-year useful life and a salvage value of $4,000. All principal and interest on the note is due in three years. Calculate the month's interest expense on the Equipment loan. It is a five year note with interest (3 percent) and principle payable at the end of year 5.
Kavra Corporation purchased a building by signing a $150,000 long-term mortgage with monthly payments of $2,000. The mortgage carries an interest rate of 12 percent. 1. Prepare a monthly payment schedule showing the monthly payment, the interest for the month, the reduction in debt, and the unpaid balance for the first three months. (Round to the nearest dollar.)2. Prepare the journal entries to record the purchase and the first two monthly payments.
A property was purchased for $3799.00 down and payments of $1377.00 at the end of every six months for 4 years. Interest is 6% per annum compounded quarterly. What was the purchase price of the property? How much is the cost of financing?
a) A bank made a 4-year 12% amortizing $2,500,000 loan with equal payments. What is the amount of interest and principal paid at the end of the 3rd year? What is the balance on the loan at the end of the 3rd year? b) Assume instead the bank demands that the borrower pay interest only for the first two years and then principal payments of $1,250,000 in years 3 and 4. What is the amount of interest and principal paid at the end of the 3rd year? What is the balance on the loan at the end of the 3rd year? Assume the same 12% rate of interest. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac).
Givens, Hong, and Partners obtained a $8,100 term loan at 9.6% compounded annually for new boardroom furniture. Prepare a complete amortization schedule in which the loan is repaid by equal semiannual payments over three years. (Round your answers to the nearest cent. Do not round the intermediate calculations.) Payment Interest number Payment $ portion $ 0 DLN3 456 1 2 1624.80 1624.80 1624.80 1624.80 1624.80 1624.80 Principal portion $ Principal balance $ 8,100.00
Locust Inc. owes $20,000.00 to be repaid by monthly payments of $510.00. Interest is 6% compounded monthly. (a) How many payments will Locust Inc. have to make? (b) How much interest is included in the 10th payment? (c) How much of the principal will be repaid in the 9th payment period? (d) Construct a partial amortization schedule showing details of the first three payments, the last three payments, and totals.
On January 1 of this year, Skamania Company completed the following transactions (assume a 8% annual interest rate): (FV of $1, PV of $1, FVA of $1, and PVA of $1) Note: Use the appropriate factor(s) from the tables provided. a. Bought a delivery truck and agreed to pay $60,200 at the end of three years. b. Rented an office building and was given the option of paying $10,200 at the end of each of the next three years or paying $28,200 immediately. c. Established a savings account by depositing a single amount that will increase to $90,400 at the end of seven years. d. Decided to deposit a single sum in the bank that will provide 8 equal annual year-end payments of $40,200 to a retired employee (payments starting December 31 of this year). Required: a. What is the cost of the truck that should be recorded at the time of purchase? b. Which option for the office building results in the lowest present value? c. What single amount must be deposited in this account on January 1 of this year?…
AmortizationThe accountant requests a loan of $2,000 from a bank; agrees to make quarterly payments, for two years, at a rate of 24% compounded monthly. Make an amortization table.
Your Corporation bought $450, 000 of equipment using an installment loan 1/1/20. The note provides for 4.5 % annual interest and equal annual payments of interest and principal of $91,395.50 on December 31 of each year. What is the amount of principal reduction related to the YEAR 2 payment?

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