TNT Construction borrowed $150,000 at 7.26% compounded annually and signed a contract with the provision to pay $9,000 at the end of every 3 months. How much principal did TNT Construction repay during the final year of the contract? Rounded to the nearest hundred dollars. A) $34,500 B) $28,800 C) $42,900 D) $62,400
Q: Consider the borrowing rates for Parties A and B. A wants to finance a $100,000,000 project at a fix...
A: Swap: It is an agreement where principal amount of a loan and the interest in one currency for the...
Q: C Companv has a $1.000 par value bond that currentlv sells tor $850. The coupon rate of the bond is...
A: Required rate of return on bond is rate of return realized on bond by holding the bond on the maturi...
Q: 1. The following are exercises in future (terminal) values: a. At the end of three years, how much i...
A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only on...
Q: 200,000, a fast food corporation may purchase the building and land required to open a new shop. Ins...
A: The monthly payment are done considering the interest and value of the building and value of buildin...
Q: Suppose an investor plans to make monthly deposits into an account that pays 9% interest, compounded...
A: We will first calculate the amount needed to pay on a monthly basis so we will take the period as 12...
Q: The future value of an investment increases as the number of periods increases True or Fase
A: Future value means the value of investment after x period of time compounded at the interest rate.
Q: Garrick is purchasing equipment for his job as a builder. The equipment costs $1000 and he wants to ...
A: The loan which is discharged by making installment payments consist of two components as interest mo...
Q: r1=0.07, r2=0.065, r3=0.06, r4=0.05, r5=0.475, r6=0.04 Find current price P(t-0) with F=5000 with an...
A: We can find the annual Y rate by taking the average of all 6-year rates. We can apply the formula to...
Q: XYZ Ltd. cash budget forewarns of a short-term surplus. Which of the following would be the appropri...
A: The Surplus cash means that the business have extra cash inflows coming into the business. The cash ...
Q: A company issued 10000, 10% debentures of 100 each on 1st April, 2003 to be matured on 1st April, 20...
A:
Q: The table below provides information about treasury bonds. Bond Bond Time to Annual Market Maturity ...
A: Here, Bond Number Bond Principal ($) Time to Maturity (Months) Annual Coupon (%) Market price ($)...
Q: Company AMP wants to determine the net present value of one of its systems when cost of capital is 1...
A: The net present value of a project can be defined as the current value of positive and negative cash...
Q: What is the amount of each payment?
A: A stream of equal cash flows paid or received periodically is termed as annuity. Ordinary annuity re...
Q: a. Calculate the initial value of the index if a price-weighting scheme is used. Indes value b. What...
A: Price-Weighted Index: In the price-weighted index, each security is weighted by the relevant price ...
Q: Mr. Daniel also ask you to evaluate the potential of developing several hundred stores into new stor...
A: Since question involves multiple sub parts , We will answer 1st sub 3 parts for you as per prescribe...
Q: A music composer deposits $5,000 into an investment that earns an annual interest rate of 5.8%. If t...
A: Nominal interest rate = 5.8% Inflation rate = 1.7%
Q: Match the correct answer for the following questions v The present worth of $400 in year 1 and amoun...
A: 1) First year amount (A1) = $400 Increase of $30 every year till year 5 r = 12%
Q: If you
A: Number of years: Number of years is the time period to take the present value of an invested amount ...
Q: 1- The Present value (Now). 2- The Future value (at year-5)|
A: Time value of money (TVM) is used to measure the value of money at different point of time in the fu...
Q: SME Balance Sheet 2021 2020 Assets (in millions) Cash 85.960 56.460 Receivables 89.560 80.6...
A:
Q: Suppose a stock has a β of 0.5. The stock pays no dividends, and is trading at $100. The market has ...
A: Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the first...
Q: What is the future value of $1,540 invested for 5 years at 5% interest compounded monthly? Round you...
A: Future Value of investment is calculated as: = Principal * ( 1 + rate of interest per period) ^ numb...
Q: Fowler, Inc., just paid a dividend of $2.40 per share on its stock. The dividends are expected to gr...
A: SOLUTION : GIVEN, Dividend = $2.40 Growth rate = 6.25% Required return = 12% Now, a. Calculating ...
Q: mplete the table below by computing the unknown component of annuity. R No. r A Php 900 6% 6 4 yrs M...
A: Since you have posted a multiple question therefore we will be solving the first question only as pe...
Q: What is the after-tax cost of preferred stock that pays a $12 dividend and sells at $100 if the firm...
A: Annual dividend = $12 Price = $100 Tax rate = 21%
Q: What is the explanatory variable? Select one: a. birth weight O b. gestational period O c. babies O ...
A: An explanatory is an independent variable which is used to find out the change caused in the respons...
Q: If the company requires a return of 13 percent on such undertakings, what is the NPV of the project?...
A: Net present value (NPV) refers to the variance between the present value (PV) of cash inflows and in...
Q: The value of levered firm is equal to, in case of taxes O Unlevered firm Unlevered firm plus present...
A: Whenever a firm undertakes a project with cash flows that do not have the same attributes as the fir...
Q: How much can you withdraw each year in your retirement? (Do not round intermediate calculations and ...
A: A stream of equal cash flows paid or received periodically is termed as annuity. Annuity is either r...
Q: A fast food restaurant feels they could increase their profits by introducing ice cream. The equipme...
A: Given: Year Particulars Amount 0 Initial investment -$250,000 1 Cash inflows $125,000 2 Cas...
Q: Harmony Sego has a tax rate of 21%, the interest rate on debt is 10%, and the WACC is 15%. If the de...
A: WACC: "Weighted average cost of capital" represents the cost of capital from all of the sources of ...
Q: QI: you put $ 2500 in account bank , this bank gives interest 6.5% for the first 3 months of saving ...
A: Interest is the cost which the borrower has to bear on the loan taken. interest is of two kinds. It ...
Q: If Rochelle obtained a business loan of $205,000.00 at 4.67% compounded semi-annually, how much shou...
A: Business loan = $205,000.00 Interest Rate = 4.67% compounded semi-annually Time Period = 30 Years
Q: Shirley Trembley buys a house for $186,200. She puts 20% down and obtains a simple interest amortize...
A: An amortized loan is one in which the borrower is required to make regular, scheduled payments that ...
Q: Which do you prefer: a bank account that pays 5.3% per year (EAR) for three years or a. An account t...
A: Here, Current EAR is 5.3% per year Time Period is 3 years Case-a: When interest rate is 2.9% every s...
Q: The Quick-time Company stock is currently selling for $32. There is a put option on the stock rith a...
A: Stock Price 32.00 Strike Price 29.00 Variance 0.0625 Risk Free Rate 0.02 Time Period 6 Month...
Q: Lia plans to buy a house for Php 158482. She wants to make a down payment of Php 23912 and to take o...
A: House cost = Php 158482 Down payment = Php 23912 Loan amount (PV) = 158482-23912 = Php 134570 Period...
Q: The project returns 50% in present value for each current dollar invested The proiect's costs are le...
A: Profitability index is the ratio of the present value of the benefits to the amount of initial inves...
Q: The option is currently a.) In-the-money b.) At-the-money c.) Out-the-money 2.) In/At/Out- the m...
A: Call option gives the opportunity to buy the stock at given price on given date of expiration but th...
Q: Diego invested 10,500 the bank gives him 2,520 simple interest per month.If you receive 2,520 as int...
A: Solution:- Interest means the increase in amount invested for a certain time period for deferring co...
Q: You have a portfolio with the following: Stock Number of Shares Price Expected Return W 725 ...
A: Stock Number of share Price Investment Investment Ratio I II III = I*II IV=III/96250 W 725 46 3...
Q: Based on SME’s financial statements, what is its average collection period or DSO
A: Receivables days means the average number of days a company takes to collect receivables from its cr...
Q: What is the current yield on the bonds? (Do not round intermediate calculations and enter your answe...
A: Current Yield: It represents the annual income of the bond consisting of interest payments. It is c...
Q: Compare the machines below using present worth analysis be selected w year ich one should
A: The present worth of a project can be defined as net benefit of a project in current terms. It is ca...
Q: The "Fly By Night" Used Car Lot uses the following to illustrate their 11.8% finance plan on a car p...
A: Present Value: The present value is the value of cash flow stream or the fixed lump sum amount at t...
Q: Suppose you drive an average of 18,000 miles per year, and you need a new vehicle. You are looking a...
A:
Q: Bon Chance, Inc., has an odd dividend policy. The company has just paid a dividend of $5.85 per shar...
A: Current dividend = $5.85 Future dividends Year Last dividend Dividend for the period A B=A+1...
Q: 14. A man made ten annual end-of-year purchases of P1,000 common stock. At the end of 10th year he s...
A: Yield to maturity can be calculated by following function in excel =RATE (nper, pmt, pv, [fv], [typ...
Q: Russ and Roz Rosow have a ten-year-old loan with which they purchased their house. Their interest ra...
A: (Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the questio...
Q: A 5-year project will require an investment of $100 million. This comprises of plant and machinery ...
A: Capital structure decisions refer to those decisions which are concerned with the sources of funds l...
Step by step
Solved in 2 steps
- A construction company plans to accelerate the payments on an equipment loan as production increases. The initial payment is $10,000 per year and the plan is to increase the payment, beginning in year 2, by an additional $1,000 each year through year 10. Determine the equivalent annual payment if the loan interest rate is 12%. Select one: O a. $13,585 Ob. $12,650 Oc. $18,650 O d. $15,485 Next page GRO3-07.06.2021 Time:14.30 Jump to... u Rabiu (Log out) N 204 14:43 AK A O 4x O ENG 24/06/2021K A company borrowed $13,000 paying interest at 8% compounded semi-annually. If the loan is repaid by payments of $2300 made at the end of each 6 months, construct a partial amortization schedule showing the last three payments, the total paid, and the total interest paid. Complete the table below for the last three payments. (Do not round until the final answer. Then round to the nearest cent as needed.) Payment Number Amount Paid Interest Paid Principal Repaid $ $2300 $2300 4 $ Outstanding Principal 50 Total Paid=$ (Do not round until the final answer. Then round to the nearest cent as needed.) Submit test Interest Paid=$ (Do not round until the final answer. Then round to the nearest cent as needed.)Welland Fabricating borrowed $73,400 at 8% compounded quarterly to purchase a new piece of machinery. Payments of $5000 are made at the end of every 3 months How much is the final loan payment? (Do not round your intermediate calculations. Round your final answer to 2 decimal places.). A Final Loan payment.
- K A company borrowed $13,000 paying interest at 8% compounded semi-annually. If the loan is repaid by payments of $2300 made at the end of each 6 months, construct a partial amortization schedule showing the last three payments, the total paid, and the total interest paid. Complete the table below for the last three payments. (Do not round until the final answer. Then round to the nearest cent as needed.) Payment Number Amount Paid Interest Paid Principal Repaid $ $2300 $2300 4 $ Outstanding Principal 50 Total Paid=$ (Do not round until the final answer. Then round to the nearest cent as needed.) Interest Paid=$ (Do not round until the final answer. Then round to the nearest cent as needed.)a. Complete an amortization schedule for a $33,000 loan to be repaid in equal installments at the end of each of the next three years. The interest rate is 9% compounded annually. Round all answers to the nearest cent BeginningRepaymentEndingYearBalancePayment nterestof Principal Balance 1$ fill in the blank 2$ fill in the blank 3$ fill in the blank 4$ fill in the blank 5$ fill in the blank 62$ fill in the blank 7$ fill in the blank 8$ fill in the blank 9$ fill in the blank 10$ fill in the blank 113$ fill in the blank 12$ fill in the blank 13$ fill in the blank 14$ fill in the blank 15$ fill in the blank 16b. What percentage of the payment represents interest and what percentage represents principal for each of the three years? Round all answers to two decimal places.% Interest % Principal Year 1:fill in the blank 17% fill in the blank 18% Year 2:fill in the blank 19% fill in the blank 20% Year 3:fill in the blank 21% fill in the blank 22%c. Why do these percentages change over…On January 1, New Jersey Company borrowed $260,000 to purchase machinery and agreed to pay 7% interest for eight years on an installment note. Each note payment is doe on the last day of the year. What is the carrying value of the loan at the end of the second year? (Do not round intermediate calculations. Only round your final answer to the nearest dollar.) A. $214,685 B. $218,232 C. $172,917 D. $207,543
- Givens, Hong, and Partners obtained a $8,100 term loan at 9.6% compounded annually for new boardroom furniture. Prepare a complete amortization schedule in which the loan is repaid by equal semiannual payments over three years. (Round your answers to the nearest cent. Do not round the intermediate calculations.) Payment Interest number Payment $ portion $ 0 DLN3 456 1 2 1624.80 1624.80 1624.80 1624.80 1624.80 1624.80 Principal portion $ Principal balance $ 8,100.00General Computers Inc. purchased a computer server for $58,500. It paid 40.00% of the value as a down payment and received a loan for the balance at 8.00% compounded semi-annually. It made payments of $2,650.41 at the end of every quarter to settle the loan. a. How many payments are required to settle the loan? o payments Round up to the next payment b. Fill in the partial amortization schedule for the loan, rounding your answers to two decimal places.General Computers Inc. purchased a computer server for $57,500. It paid 35.00% of the value as a down payment and received a loan for the balance at 10.50% compounded semi-annually. It made payments of $2,450.35 at the end of every quarter to settle the loan. a. How many payments are required to settle the loan? 0 payments Round up to the next payment b. Fill in the partial amortization schedule for the loan, rounding your answers to two decimal places. Payment Number Payment Interest Portion Principal Portion Principal Balance 0 $37,375.00 1 $0.00 $0.00 $0.00 $0.00 2 $0.00 $0.00 $0.00 $0.00 : : : : : :
- a. Complete an amortization schedule for a $46,000 loan to be repaid in equal installments at the end of each of the next three years. The interest rate is 10% compounded annually. Round all answers to the nearest cent. Year 1 2 3 tA t $ Year 1: Year 2: Year 3: ||| Beginning Balance $ % Interest % % $ % $ Payment % Principal % % पी % A LA b. What percentage of the payment represents interest and what percentage represents principal for each of the three years? Round all answers to two decimal places. Interest $ $ +A Repayment of Principal $ ta $ tA Ending Balance 11 c. Why do these percentages change over time? I. These percentages change over time because even though the total payment is constant the amount of interest paid each year is declining as the remaining or outstanding balance declines. II. These percentages change over time because even though the total payment is constant the amount of interest paid each year is increasing as the remaining or outstanding balance declines.…A bakeshop obtains a loan of P500,000 with interest at 8% compounded quarterly for the construct of a new branch in Angeles, City. The owner will repay the loan by payments made quarterly for 2 ½ years. Create an amortization schedule to answer the following questions. 1.How much is the total interest? 2.How much is the present outstanding balance on the 7th payment period? 3.How much principal repayment paid in the 9th payment period? 4.How much is the interest paid in the 5th payment? 5.Find the quarterly payment.5. General Computers Inc. purchased a computer server for $56,000. It paid 35.00% of the value as a down payment and received a loan for the balance at 10.00% compounded semi-annually. It made payments of $2,850.75 at the end of every quarter to settle the loan. a. How many payments are required to settle the loan? _________payments b. Fill in the partial amortization schedule for the loan, rounding your answers to two decimal places. Payment Number Payment Interest Portion Principal Portion Principal Balance 0 $36,400.00 1 2 : : : : : : : : : : : : : : : : : : : : 0.00 Total