You are told that a note has repayment terms of $1,700 per quarter for 6 years, with a stated interest rate of 8%. How much of the total payment is for principal, and how much is for interest? Calculate using (a) financial calculator or (b) Excel function PV. (Round answers to 2 decimal places, eg. 5.275.25) Total payment for principal Total interest S Determine if the total interest will be higher or lower than with an annual payment. The total interest will be than with an annual payment.
You are told that a note has repayment terms of $1,700 per quarter for 6 years, with a stated interest rate of 8%. How much of the total payment is for principal, and how much is for interest? Calculate using (a) financial calculator or (b) Excel function PV. (Round answers to 2 decimal places, eg. 5.275.25) Total payment for principal Total interest S Determine if the total interest will be higher or lower than with an annual payment. The total interest will be than with an annual payment.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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