Marpole Carpet Cleaning borrowed $7600 from Richmond Credit Union at 8% compounded quarterly. The loan is to be repaid by equal quarterly payments over a two-year term. Construct the amortization schedule for the loan.
Q: AC Inc. borrows $250,000 to finance an expansion. The loan agreementrequires equal payment= every…
A: Loan is a contract between lender and borrower where lender provide funds to borrower for definite…
Q: A 3,300,000 loan was granted to a borrower by Norayma Bank with a nominal interest rate of 12% which…
A: Carrying value is the accounting value gauge wherein the value of a firm or resource is determined…
Q: Winter Break Inc. obtained a $600,000 loan for a new building valued as $1,100,000. Theloan contract…
A: Solution: Interest rate every quarter = 9% / 4 = 2.25%…
Q: cember 31, 2023. After
A: Carrying value is the accounting value gauge wherein the value of a firm or resource is determined…
Q: Alhambra Corporation borrowed $1 million from Anaheim Bank with the understanding that Alhambra will…
A: here PV = $1 MILLION or $1,000,000 nper = 6 and PMT = 175,000. FV = 0. We have to find the rate…
Q: A debt of 5,000 dollars with interest at 12% compounded semi-annually is to be amortized by equal…
A: Semi annual payment can be calculated using the formula of present value of annuity.
Q: A debt of $15,000 with interest at 12% compounded monthly is repaid over 10 years by equal payments…
A: a. Calculate the size of periodic payment as follows: Payment=Loan…
Q: A loan of $245,000 is to be repaid in equal quarterly payments over a period of 6 years. If the…
A: Loan = 245,000 Time Period (N) = 6 years i.e. 24 quarters Number of compounding periods = 4 Interest…
Q: A company borrowed at 7.21% compounded annually to purchase equipment, agreeing to make payments of…
A: Time values tell that money received today is of more worth than that of receiving the exact amount…
Q: The interest rate on a $6400 loan is 7% compounded semi-annually, and the loan is to be repaid by…
A: Here, To Find: Number of months required to settle the loan =? Amortization schedule =? Total…
Q: A equal principal payment loan of $3000 is amortized by means of 12 quarterly payments, beggining…
A: Loan Amount = $3,000Total Number of Payments = 12Loan Principal Payment = $3,000 ÷ 12 = $250Interest…
Q: Joan Messineo borrowed $15,000 at a 14 percent annual interest rate to be repaid over three years.…
A: Installment is the amount of periodic payment a borrower has to make to its lender in order to repay…
Q: You obtain a loan for 1,500,000 payable in three equal annual installments of 500,000 each. Interest…
A: Annual principal payment = 500,000 Interest rate =10% Effective rate = 12%
Q: Glen Pool Club, Inc., has an installment loan outstanding with a current balance of $141,000. The…
A: Loan Outstanding =$ 141,000 Interest rate = 6% p.a 6% interest p.a. is given so one month's…
Q: Ahlam borrows AED 3,000,000 to be repaid over 6 years at 8 percent. What is the repayment of…
A: An annual mortgage payment is an annual payment that is to be paid for a specific period of time to…
Q: An individual borrows $4,500 from the bank to be repaid in three equal annual installments, with the…
A: Using PMT function in excel
Q: A company financed the purchase of a machine with a loan at 4.25% compounded semi-annually. This…
A: Solution:- When a loan is taken, it can either be repaid as a lump sum payment or in installments.…
Q: LEW Company purchased a machine at a price of $100,000 by signing a note payable, which requires a…
A: Present value factor at 2 year for $1 = Machine cost / Payment to be made = $100,000 / $123,210 =…
Q: Bronco Repairs borrowed $15 000 from National Credit Union at 10% compounded quarterly. The loan…
A: Given, Loan = $15000 Interest per period = 10%/4 = 2.5% n = 6.581682 pmt = 2500
Q: A $500,000 corporate loan is supposed to be repaid over 10 years in the amount of $15,227.80 at the…
A: The question explains that loan refinancing at the cheaper interest rate will reduce the regular…
Q: A company borrowed at 7 42% compounded monthly to purchase equipment, agreeing to make payments of…
A: Given, The rate of interest is 7.42% compounded monthly. Quarterly payments is $2900 Term is 17…
Q: Directions: Solve the following problems. A loan of P40,000is to be amortized by equal payments at…
A: Given Information :Amount of loan = P 40,000 Period of loan = 18 months = 1.5 years Annual interest…
Q: pan of $30,000 is to be financed over a period of 24 months. The agency quotes a nominal interest…
A: in this we have to find equivalent effective interest rate and use as annual interest rate.
Q: Excellent bank has offered you $40,000, 30-year loan to purchase an equipment in your Factory. The…
A: A = P1+r100n Where A = Amount P = Principal r = Rate of interest n = Number of periods
Q: Tricana Corporation borrowed $75,000.00 at 3% compounded monthly for 14 years to buy a warehouse.…
A: Borrowed amount is $75,000.00 Interest rate is 3% compounded monthly Time period is 14 years To…
Q: A $14,000 loan at 6% compounded monthly is repaid by monthly payments over four What is the size of…
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: What are the correct portions assigned to principal interest of the final payment?
A: Loan (mortgage) amortization schedule refers to a schedule which is prepared to shows the periodic…
Q: Make an amortization schedule (which includes payments made, interest paid, principal repaid, and…
A: The question is based on the concept of Financial Accounting.
Q: Cranes Limited took a loan of $ 450,000 at 4% compounded monthly from its bank to train its…
A: When the loans are repaid in periodic instalments, each periodic instalment have 2 components i.e.…
Q: A loan of $22,000 is to be financed to assist a person's college education. Based upon monthly…
A: Nominal interest rate refers to the interest rate before taking inflation into account. Nominal can…
Q: MMS Corp borrows $1,650,000 today for a new building. The loan is an equal principal payment loan…
A: Calculation of Current Portion of Debt in Month 16:The current portion of month debt 16 is…
Q: Suppose you are thinking of availing a loan of P100,000 at Pag-ibig Funds for house repairs after…
A: A loan refers to the borrowed amount taken by a person from the lender in case of a shortfall of…
Q: Excellent bank has offered you, a GHC 60,000 35year loan to purchase an equipment in your Factory.…
A: GHC=60000 After 35 year the loan amount will be =$134,964.00 Effective Annual Interest Rate-…
Q: a. What was the principal balance of the loan? $0.00 Round to the nearest cent b. What was the total…
A: Principal: It refers to the initial amount of loan or bond that must be paid with interest to the…
Q: loan of $245,000 is to be repaid in equal quarterly payments over a perioa of 6years. the interest…
A: In this we need to calculate the quarterly payment and than get the required amount.
Q: A fully secured loan of P30,000 was to be amortized by 10 equal semi-annual payments, the first…
A: The time value of money becomes an important factor for capital budgeting decisions. It is an idea…
Q: A $550.000 home loan is amortized by equal monthly payments for 25 years at a nominal rate of…
A: A loan is the borrowing that is taken by a borrower from a lender. A loan is most commonly taken…
Q: A design studio received a loan of $8,950 at 5.60% compounded semi-annually to purchase a camera. If…
A: Amount of loan is $8,950 Interest rate is 5.6% compounded semi-annually Time period is 2 years Total…
Q: To pay for remodeling, the company will take out a $500,000 five-year loan at 9.5% interest,…
A: Given data: Original Loan=$500,000 Annual Interest Rate=9.5% Loan duration (yrs)=5 Number of periods…
Q: A debt of $22,000 with interest of 10% compounded quarterly is to be amortized by payments of…
A: Total installment amount includes the interest expense as well as a portion of the principal amount.…
Q: BALR Corp.borrows $500,000 to be paid off in three years. The loan payments are semiannual with the…
A: Loan refers to the amount raised by an individual with the mode of borrowings from the lender with…
Q: B11 through E30. Column B contains the interest payment for each quarter, and column C contains the…
A: An amortization schedule (also known as an amortisation table) is a table that outlines each…
Q: loan of £4,000 is to be repaid over 5 years by a level annuity payable monthly in arrears. The…
A: Given information : Loan amount 4000 Time period (years) 5 Interest rate 1% Note : I will…
Q: Find the amount applied to principle for the third month of a 4-year loan of $19,000 which charges…
A: A principal payment is a payment made against the remaining balance of a loan.
Step by step
Solved in 3 steps with 1 images
- Using the PVIFA table determine the annual payment on a $600,000, 10 percent, business loan from a commercial bank that is to be amortized over a five-year periodLoan Amortization Schedule Required: a) Construct an full amortization schedule for the scenerio below. Details to include pmt #, payment amount, interest portion and principal portion. b) Determine how much interest was paid over the term of the loan. Details: Kirkland Corporation obtained a $125,000 loan for a new business venture. The loan contract requires payments at the end of each quarter including interest at 3% compounded semi-annually. The loan is to be repaid by equal quarterly payments over a six year term. compounding I/Y NOM P/Y C/Y C/Y EFF PV рaуment FV NOM PMT C/Y EFF Pmt # Payment Interest Portion Principal Portion Principal BalanceConstruct an amortization schedule for a $1,000, 3.9% annual rate loan with 3 equal payments. The first payment will be made at the end of the 1st year. Find the required annual payments Selected Answer: $356.9 Answers: $356.9 $359.7 $367.2 $370.5 what’s the ending balance of the amortized loan at the end of the first year? Selected Answer: $678.1 Answers: $650.2 $669.1 $678.1 $679.3
- Find the payment necessary to amortize a 5.5% loan of $7700 compounded semiannually, with 6 semiannual payments. Find (a) the payment necessary to amortize the loan and (b) the total payments and the total amount of interest paid based on the calculated semiannual payments. Then create an amortization table to find (C) the total payments and total amount of interest paid based upon the amortization table. a. The semiannual payment needed to amortize this loan is $ (Round to the nearest cent as needed.) b. The total amount of the payments is $ (Round to the nearest cent as needed.) The total amount of interest paid is $ (Round to the nearest cent as needed.) c. The total payment for this loan from the amortization table is $ %24 The total interest from the amortization table is $Develop an amortization schedule for the loan described. (All answers should be entered in dollars. Round your answers to the nearest cent.) $90,000 for 2.5 years at 10% compounded semiannuallyThe payment necessary to amortize a 5.5% loan of $82,000 compounded annually, with 8 annual payments is $12,944.85. The total of the payments is $103,558.80 with a total interest payment of $21,558.80. The borrower ma larger payments of $13,000.00. Calculate (a) the time needed to pay off the loan, (b) the total amount of the paymen and (c) the amount of interest saved.
- Chuck’s Publishing, Inc. borrows $30,000 from Citicorp to finance the purchase of a new office cooling system. The loan has an interest rate of 12% and Chuck’s will be required to make annual payments for the next 3 years. Fill in the following loan amortization schedule for this transaction.the payment necessary to amortize a 4.8% loan of $81000 compounded annually with 7 annual payments is $13897. The total of the payments is $97279.77 with a total interest payment of $16279.77. The borrower made larger payments of $14000.00. Calculate (a) the time needed to pay off the loan, (b) the total amount of the payments, and (c) the amount of interest saved. Question content area bottom Part 1 a. The time needed to pay off the loan with payments of $14,000.00 is (Round up to the nearest year.) b. The total amount of the payments is $ (Round to the nearest cent as needed. c. The amount of interest saved is $ (Round to the nearest cent as needed.)The following loan is fully amortizing. The loan is for $12,000 at 5% interest to be repaid over three (3) years. Amortize this loan on a monthly basis. Calculate the interest portion of the fourth (4th) payment considering that an additional payment of $2,000 was made with the second payment.
- Prepare an amortization schedule for a three-year loan of $96,000. The interest rate is 9 percent per year, and the loan calls for equal annual payments. How much total interest is paid over the life of the loan? Year 1: Beginning Balance, Total Payment, Interest Payment, Principal Payment, Ending balance Year 2: Beginning Balance, Total Payment, Interest Payment, Principal Payment, Ending balance Year 3: Beginning Balance, Total Payment, Interest Payment, Principal Payment, Ending balance Total Interest for all 3 Years.Mewto Bank granted a loan to Mew Company on January 1, 2020. The interest on the loan is 12% payable annually starting December 31, 2020. The loan matures in four years. Principal amount P5,000,000 Direct origination cost incurred 120,000 Indirect origination cost incurred 50,000 Origination fee received from the borrower 400,000 After considering the origination fee received from the borrower and the direct origination cost incurred, the effective rate on the loan is 14%. How much is the interest income to be recognized on December 31, 2021?A fully amortizing CAM loan is made for $132,000 at 6 percent interest for 20 years. Required: a. What will be the payments and balances for the first six months? b. What would payments be for a CPM loan? c. If both loans were repaid at the end of year 5, would the lender earn a higher rate of interest on either loan? Complete this question by entering your answers in the tabs below. Required A Required B Required C What will be the payments and balances for the first six months? (Round your intermediate calculations and final answers to the 2 decimal places.) Month 1 Month 2 Month 3 Total Payment End Balance