You are told that a note has repayment terms of $900 per quarter for 6 years, with a stated interest rate of 4% 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 $ 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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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You are told that a note has repayment terms of $900 per quarter for 6 years, with a stated interest rate of 4%. 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
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.
Transcribed Image Text:Current Attempt in Progress You are told that a note has repayment terms of $900 per quarter for 6 years, with a stated interest rate of 4%. 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 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.
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