J A borrows $11000 for 9 years at 12% convertible semiannually. A pays the interest semiannually and replaces the principal by means of deposits at the end of every year for 9 years into a sinking fund which earns 10% effective. Find the total dollar amount which A must pay over the 9- year period to completely repay the loan. ANSWER =$

J A borrows $11000 for 9 years at 12% convertible semiannually. A pays the interest semiannually and replaces the principal by means of deposits at the end of every year for 9 years into a sinking fund which earns 10% effective. Find the total dollar amount which A must pay over the 9- year period to completely repay the loan. ANSWER =$

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 19P

See similar textbooks

Similar questions

If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?
Calculating and comparing add-on and simple interest loans. Eli Nelson is borrowing 10,000 for five years at 7 percent. Payments, which are made on a monthly basis, are determined using the add-on method. a. How much total interest will Eli pay on the loan if it is held for the full five-year term? b. What are Elis monthly payments? c. How much higher are the monthly payments under the add-on method than under the simple interest method?
Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual interest rate of 6%, and payable in four months. How much interest will Marathon Peanuts owe at the end of four months? A. $2,600 B. $7,800 C. $137,800 D. $132,600
Halep Inc. borrowed $30,000 from Davis Bank and signed a 4-year note payable stating the interest rate was 4% compounded annually. Halep Inc. will make payments of $8,264.70 at the end of each year. Prepare an amortization table showing the principal and interest in each payment.
On a loan of $1400, interest at 9% effective must be paid at the end of each year. The borrower also deposits $X at the beginning of each year into a sinking fund earning 4.7% effective. At the end of 10 years the sinking fund is exactly sufficient to pay off the loan. Calculate X. A. $ 1617.11 B. $ 1078.07 C. $ 1347.59 D. $ 1724.92 E. $ 1232.09
You plan to borrow $33,600 at a 6.5% annual interest rate. The terms require you to amortize the loan with 7 equal end-of-year payments. How much interest would you be paying in Year 2? O a. $6,126.33 O b. $5,752.43 O c. $2,184.00 O d. $1,927.75 O e. $1,952.05
You plan to borrow $33,100 at a 7.0% annual interest rate. The terms require you to amortize the loan with 7 equal end-of- year payments. How much interest would you be paying in Year 2? O a. $2,077.39 b. $2,049.26 c. $6,141.81 d. $2,317.00 e. $5,740.01
Q) You are about to borrow $15,000 from a bank at an interest rate of 8% compounded annually. You are required to make three equal annual repayments in the amount of $5,820.50 per year, with the first repayment occurring at the end of year 1. Show the interest payment and principal payment in each year. paying it off in 3 years. Fill in the table below. (Round to the nearest cent.) End of Year Principal Repayment Interest payment Remaining Balance 0 $15000 1 Solve this early. Note:-solve by handwriting or typed not in excel works
Q) You are about to borrow $15,000 from a bank at an interest rate of 8% compounded annually. You are required to make three equal annual repayments in the amount of $5,820.50 per year, with the first repayment occurring at the end of year 1. Show the interest payment and principal payment in each year. paying it off in 3 years. Fill in the table below. (Round to the nearest cent.) End of Year Principal Repayment Interest payment Remaining Balance 0 $15000 1 Solve this early i upvote. Handwriting or typed answer provide me not solve in excel.
Adrian borrowed $2,000 for 4 years For the first 15 years, the interest rate on the loan was 8% compounded quarterly. Then the rate became 3.25% compounded semi- annually What total amount was required to pay off the loan if no payments were made before the expiry of the 4%-year term? For full marks your final answer should be rounded to the nearest cent Amount = $0.00
Q) You are about to borrow $15,000 from a bank at an interest rate of 8% compounded annually. You are required to make three equal annual repayments in the amount of $5,820.50 per year, with the first repayment occurring at the end of year 1. Show the interest payment and principal payment in each year. paying it off in 3 years. Fill in the table below. (Round to the nearest cent.) End of Year Principal Repayment Interest payment Remaining Balance 0 $15000 1 Solve this early. Handwriting or typed answer only. Not solve in excel.
Xander takes out a loan for $260000 at an interest rate of 4.8%p.a. compounded monthly. The minimum monthly repayments over 25 years are currently $1489.8. a. Calculate the outstanding debt after 7 year(s) of minimum payments. Calculator input: n = i = PV = РМТ 3 FV = PİY = CİY = Outstanding debt = b. After 7 year(s), Xander transfers the remainder of her loan to a bank charging a home loan interest of 4.4%p.a. compounded monthly. (i) Calculate the new monthly repayment monthly payment = $ How much interest will Xander save? Calculate the balance (ii) remaining using your answer from b(i) and the final PMT. Total interest saved =