Spectrum borrowed $4 million for new fiber optic cable and repaid the loan in amounts of $400,000 in years 1 and 2 and a lump-sum amount of $4.2 million at the end of year 3. What was the interest rate on the loan? a) 10.00% b) 8.47% c) 13.50% d) 12.10%
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- Dexter Construction Corporation is building a student condominium complex; it started construction on January 1, Year 1. Dexter borrowed 2.5 million on January 1 specifically for the project by issuing a 10%, 5-vear, 2.5 million note, which is payable on December 31 of Year 3. Dexter also had a 12%, 5-year, 3 million note payable and a 10%, 10-year, 1.8 million note payable outstanding all year. Calculate the weighted average interest rate on the non-construction-specific debt for Year 1. RE10-9 Refer to RE10-8. In Year 1, Dexter incurred costs as follows: Calculate Dexters weighted average accumulated expenditures.Kingsley Toyota borrowed $175,000 from a local bank. The loan requires Kingsley to pay 15 equal annual installments beginning one year from today. Assume an interest rate of 7%. What is the amount of each annual installment payment? (FV of $1. PV of $1. EVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) (Round your final answers to nearest whole dollar amount.) Table or calculator function: Loan Amount: Loan Payment: n= F= PVA of $1 S 175,000 15 7% IIKingsley Toyota borrowed $100,000 from a local bank. The loan requires Kingsley to pay 10 equal annual installments beginning one year from today. Assume an interest rate of 8%. What is the amount of each annual installment payment? (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) (Round your final answers to nearest whole dollar amount.) Present Value = n = i = Future Value =
- Use the information presented below in answering questions 11-15. On December 31, 2018, Tina Company, a financing institution lent P4,000,000 to Erika Corporation due three years after. The loan is supported by an 6% note receivable. Transaction costs incurred to originate the loan amounted to P100,000, P466,557 was chargeable to Erika as origination fees. Interest on the loan are collectible at the end of each year. The yield rate on the loan is 11%. Tina was able to collect interest as it became due at the end of 2019 and 2020. During 2021, however, due to Erika Corporation’s business deterioration and due to political instability and faltering global economy, the company was not able collect amounts due at the end of 2021. After reviewing all available evidence at December 31, 2021. Tina determined that it was probable that Erika would pay back only P2,500,000 is collectible as follows: December 31, 2023 0.5M December 31, 2024 1M December 31, 2025 0.6M December 31, 2026…A bank has agreed to lend you $127,800 for a home loan. The loan will be fully amortized over 57 years at 12.98%, with .13 points. The loan payments will be monthly. The closing cost is estimated to be $2,168. Calculate the loan principal. $130,063.66 $130.137.18 $130,181.52 $130,144.37 None of the answers are correctNote: kindly answer all... Please help me?? A company borrowed $7,900,000 from a bank.The company repaid the loan after 3 years with a single payment of $10,000,000. The compound interest rate (i) on the loan is: A. 11.5%, B. 9.50%, C.7%, D.8.17% The time it would take for a given sum of money to be triple at i=10% per year compound interest is closest to: A. 12 Yr B. 14 Yr C. 15 Yr D. 9 Yr E. 8yr If interest is compounded at 12% per year, how long will it take for $50,000 to accumulate to $88,600? A. 6yr B.9 Yr C. 8yr D.5yr At an interest rate (i) of 13% per year, the equivalent amount of $10,000 three years ago is closest to: A. $6245 B. $6589 C. $7245 D. $6931 E. $7833
- A broadband service company borrowed $2 million for new equipment and repaid the loanin amounts of $211,000 in years 1 and 2 plus a lump sum amount of $1.95 million at the end ofyear 3. What was the interest rate on the loan? The rate of interest on the loan was %.Assume you borrow $10,000 today and promise to repay the loan in two payments, one in year 2 and the other in year 4, with the one in year 4 being only half as large as the one in year 2. At an interest rate of 10% per year, the size of the payment in year 4 is closest to: (a) $4280 (b) $3975 (c) $3850 (d) $3690You are offered loans from two competing lenders on the purchase of a $6.5 million property for a 5-year term (25-year amortization). Assume that payments are made ANNUALLY. The terms are outlined below: Loan 1 Loan 2 LTV 62.5% 70.0% Rate 6.375% 6.875% Fees (total) $55,000 $77,000 Calculate the incremental cost for the extra funds provided by loan 2. Hint: Remember that the loan will not be outstanding a full 25 years. ENTER YOUR ANSWER AS A DECIMAL WITH 4 PLACES. IF YOUR ANSWER
- Use the amortization table below to answer the following questions. The loan is for 6 years at 4.5% interest on a $40,000 car. Year Interest Principal Balance 2011 $1,678.46 $5,941.08 $34,058.92 2012 $1,405.53 $6,214.01 $27,844.92 2013 $1,120.06 $6,499.48 $21,345.44 2014 $821.47 $6,798.06 $14,547.38 2015 $509.17 $7,110.36 $7,437.01 2016 $182.52 $7,437.01 $0.00 How much are the yearly payments? b. If you traded your car in at the end of the 4 th year (2014) and it was worth $16,500, how much would you get to put towards the new car that you are buying after paying back the bank?A company borrowed $100,000 from a local bank. The loan requires 10 equal annual payments beginning one year from today. Assume an interest rate of 8%. What is the amount of each annual payment? Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)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
