Problem #2: Installment Note Preferred Corporation purchases an asset and finances it with a note payable. Information regarding the transaction follows: YOU WILL NÉED THE KIESO PRESENT VALUE TABLES FOR THIS PROBLEM. 450,000 450,000 12% years 4 times per year Cost of asset Amount Financed Annual Interest Rate Installment loan term Payments are made USE PROBLEM #2 TO ANSWER QUESTIONS 8 THRU 10 BELOW .) Calculate the periodic payment on the note payable. .) What is the total amount of interest that will be paid on the note payable over the two year period? .) If the company wishes to get the loan paid off in ONE year instead what will the new quarterly payments be?

Problem #2: Installment Note Preferred Corporation purchases an asset and finances it with a note payable. Information regarding the transaction follows: YOU WILL NÉED THE KIESO PRESENT VALUE TABLES FOR THIS PROBLEM. 450,000 450,000 12% years 4 times per year Cost of asset Amount Financed Annual Interest Rate Installment loan term Payments are made USE PROBLEM #2 TO ANSWER QUESTIONS 8 THRU 10 BELOW .) Calculate the periodic payment on the note payable. .) What is the total amount of interest that will be paid on the note payable over the two year period? .) If the company wishes to get the loan paid off in ONE year instead what will the new quarterly payments be?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA3: Time Value Of Money

Section: Chapter Questions

Problem 11E

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Exercise 2: Directions: Analyze the given amortization procedures in the table below then fill in cach blank using the guide questions below the table. Problem: A salary loan amounting to P15,000 is to be paid annually for 4 years with an interest rate of 6% compounded annually. The annual amortization is P P4,328.87. PRINCIPAL Outstanding Balance Interest Regular Payment (R) Period Component of Component of Рауment Раyment P11,571.13 7,936.53 E 1. 2. 3. P4,328.87 P4,328.87 P4,328.87 P900 P694.27 P3,428.87 3,852.68 4,083.84 4 245.031 F Total G. H. Guide Questions: A. How much is the amount of the loan? (Outstanding balance at time 0) B. How much is the first regular annual payment? C. For the second payment, how much goes to pay the principal? D. For the third payment, how much goes to pay the interest? E. How much is the outstanding balance after the 3rd payment? F. How much should be the outstanding balance after the 4th or last payment? G. How much is the total amount of regular…
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 years at 10% compounded semiannually Balance Reduction. Period 1 2 3 4 5 Payment $ S S $ $ $ S Interest $ $ $ $ $ Unpaid Balance $90,000 0000 $0.00
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Exercise 2: Directions: Analyze the given amortization procedures in the table below then fill in cach blank using the guide questions below the table. Problem: A salary loan amounting to P15,000 is to be paid annually for 4 years with an interest rate of 6% compounded annually. The annual amortization is P P4,328.87. PRINCIPAL Outstanding Balance Period Regular Interest Payment (R) Component of Component of Раyment A. Раyment PI1,571.13 7,936.53 P3,428.87 C 3,852.68 4,083.84 P900 P694.27 P4,328.87 P4,328.87 P4,328.87 E 4. 245.031 Total G H. Guide Questions: D. For the third payment, how much goes to pay the interest? E. How much is the outstanding balance after the 3rd payment? F. How much should be the outstanding balance after the 4th or last payment? G. How much is the total amount of regular payment for 4 years? H. How much is the total interest paid for 4 years? I. How much is the total payment for the principal for 4 years? 1123-
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Please answwer the 3 because they are related... Construct an amortization schedule for a $1,000, 5% annual rate loan with 3 equal payments. The first payment will be made at the end of the1st year. Find the required annual payments $355.8 $367.2 $388.0 $390.7 Based on the information from Question 35, what’s the ending balance of the amortized loan at the end of the third year $0 $349.7 $388.3 $682.8 Based on the information from Question 35 and 36, calculate the total amount of interests you should pay for the amortized loan in three years. $28.8 $55.4 $80.0 $101.6
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Fl in an amortization table (in dollars) for a loan of $8,500 to be paid back over 2 years, at an annual interest rate of 1.3, compounded quarterly. For eech value in the table, round your answer to the nearest cent and use this value to calculate the next value. Payment number Payment amount Payment amount to interest Payment amount to debt Outstanding principal S0.500 13 14
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 $