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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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.
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