Valley Produce received $50,000 in vendor financing at 7.8% compounded semiannually for the purchase of harvesting nachinery. Equal annual payments of $9,587.89 will repay the debt in seven years, including $17,115.26 in interest. Suppose he loan permits an additional prepayment of principal on any scheduled payment date. Prepare the amortization schedule hat reflects a prepayment of $10,000 with the second scheduled payment. How much interest is saved as a result of the prepayment? (Do not round intermediate calculations. Round your answers to 2 decimal places. Leave no cells blank - be certain to enter "0" wherever required.) nterest saved Payment number 0 1 $ Payment $1 9587.89 Interest portion $ Principal portion $ 11 Principal balance $ 50,000.00
Valley Produce received $50,000 in vendor financing at 7.8% compounded semiannually for the purchase of harvesting nachinery. Equal annual payments of $9,587.89 will repay the debt in seven years, including $17,115.26 in interest. Suppose he loan permits an additional prepayment of principal on any scheduled payment date. Prepare the amortization schedule hat reflects a prepayment of $10,000 with the second scheduled payment. How much interest is saved as a result of the prepayment? (Do not round intermediate calculations. Round your answers to 2 decimal places. Leave no cells blank - be certain to enter "0" wherever required.) nterest saved Payment number 0 1 $ Payment $1 9587.89 Interest portion $ Principal portion $ 11 Principal balance $ 50,000.00
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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Transcribed Image Text:Valley Produce received $50,000 in vendor financing at 7.8% compounded semiannually for the purchase of harvesting
machinery. Equal annual payments of $9,587.89 will repay the debt in seven years, including $17,115.26 in interest. Suppose
the loan permits an additional prepayment of principal on any scheduled payment date. Prepare the amortization schedule
that reflects a prepayment of $10,000 with the second scheduled payment. How much interest is saved as a result of the
prepayment? (Do not round intermediate calculations. Round your answers to 2 decimal places. Leave no cells blank - be
certain to enter "0" wherever required.)
Interest saved
Payment
number
0
1
олдWN H
2
3
4
5
6
Payment $
Total:
9587.89
Interest
portion $
Principal
portion $
Principal
balance $
50,000.00
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