Intermediate Accounting
3rd Edition
ISBN: 9780136912644
Author: Elizabeth A. Gordon; Jana S. Raedy; Alexander J. Sannella
Publisher: Pearson Education (US)
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Question
Chapter 8, Problem 8.9BE
a.
To determine
The amount and type of financing component.
Given information:
Future value is $1,500,000.
Interest rate is 8%.
Number of years are 2.
b.
To determine
The amount and type of financing component.
Given information:
Present value is $1,500,000.
Interest rate is 8%.
Number of years are 2.
c.
To determine
The amount and type of financing component.
Given information:
Present value is $500,000.
Interest rate is 12%.
Number of years are 3.
d.
To determine
The amount and type of financing component.
Given information:
Future value is $500,000.
Interest rate is 12%.
Number of years are 3.
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Check out a sample textbook solutionStudents have asked these similar questions
(1) A 10-year loan of 30,000 may be repaid under the following two methods:
(a) amortization method with equal annual payments at an annual effective interest rate of 7.5%.
(b) sinking fund method in which the lender receives an annual effective interest rate of 9% and the sinking
fund earns an annual effective interest rate of j.
Both methods require a payment of X to be made at the end of each year for 10-years. Calculate j.
(2) A loan of X is repaid with level annual payments at the end of each year for 15 years. You are given:
(a) The interest paid in the 1st year is 1000; and
(b) the principal repaid in the 10th year is 563.
Calculate X.
Prepare an amortization schedule for a three-year loan of $60,000. The interest rate is 6 percent per year, and the loan calls for
equal annual payments. How much is the principal payment for the first year?
Select one:
a.$ 50,377.17
b.$ 22,446.59
c.$ 20,000
d.$ 18,846.59
a. Complete an amortization schedule for a $12,000 loan to be repaid in equal installments at the end of each of the next three years. The interest rate is 11%
compounded annually. If an amount is zero, enter "0". Do not round intermediate calculations. Round your answers to the nearest cent.
Beginning
Repayment
Ending
Year
Balance
Payment
Interest
of Principal
Balance
$4
b. What percentage of the payment represents interest and what percentage represents principal for each of the three years? Do not round intermediate
calculations. Round your answers to two decimal places.
% Interest
% Principal
Year 1:
%
Year 2:
%
Year 3:
%
%
%24
%24
%24
%24
3.
Chapter 8 Solutions
Intermediate Accounting
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