Question

In: Accounting

Detroit Fishing obtained a $40,000 loan for the construction of a trawler, The loan contract requires...

Detroit Fishing obtained a $40,000 loan for the construction of a trawler, The loan contract requires seven equal annual payments including interest at 11.830625% compounded annually. Construct the full amortization schedule for the loan.

Solutions

Expert Solution

Note

If you have any queries kindly post a comment, i will solve it earliest.

If you satisfied with my answer, kindly give a thumbs up, it will help to encourage me.

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

A construction company signed a loan contract at 6.73​%compoundedannually​, with the provision to pay​ $785 at...
A construction company signed a loan contract at 6.73​%compoundedannually​, with the provision to pay​ $785 at the end of each month for three years. ​(a) What is the amount of the​ loan? ​(b) How much will be owed at the end of nineteen ​months? ​(c) How much of the principal will be repaid within the first nineteen ​months? ​(d) How much interest is paid during the first nineteen months
A construction company signed a loan contract at 4.07 % compounded semi-annually , with the provision...
A construction company signed a loan contract at 4.07 % compounded semi-annually , with the provision to pay $665 at the end of each month for three years. (a) What is amount of the loan? (b) How much will be owed at the end of seventeen months? (c) How much of the principal will be repaid within the first seventeen months? (d) How much interest is paid during the first seventeen months?
(cost of restrictive covenant) peachtree construction has a restrictive covenant in a loan contract that essentially...
(cost of restrictive covenant) peachtree construction has a restrictive covenant in a loan contract that essentially prohibits the expansion of the firm into a new line of business that it is considering. the cost of this restriction is estimated to be $20 million. The debt can be called off and paid early by paying a $5 million penalty. What should peachtree do?  
Consider a project to supply Detroit with 40,000 tons of machine screws annually for automobile production.
Consider a project to supply Detroit with 40,000 tons of machine screws annually for automobile production. You will need an initial $4,800,000 investment in threading equipment to get the project started; the project will last for 3 years. The accounting department estimates that annual fixed costs will be $850,000 and that variable costs should be $220 per ton; accounting will depreciate the initial fixed asset investment straight-line to zero over the 3-year project life. It also estimates a salvage value...
Consider a project to supply Detroit with 40,000 tons of machine screws annually for automobile production....
Consider a project to supply Detroit with 40,000 tons of machine screws annually for automobile production. You will need an initial $5,200,000 investment in threading equipment to get the project started; the project will last for 6 years. The accounting department estimates that annual fixed costs will be $800,000 and that variable costs should be $350 per ton; accounting will depreciate the initial fixed asset investment straight-line to zero over the 6-year project life. It also estimates a salvage value...
Consider a project to supply Detroit with 40,000 tons of machine screws annually for automobile production....
Consider a project to supply Detroit with 40,000 tons of machine screws annually for automobile production. You will need an initial $6,000,000 investment in threading equipment to get the project started; the project will last for six years. The accounting department estimates that annual fixed costs will be $700,000 and that variable costs should be $200 per ton; accounting will depreciate the initial fixed asset investment straight-line to zero over the six-year project life. It also estimates a salvage value...
Consider a project to supply Detroit with 40,000 tons of machine screws annually for automobile production....
Consider a project to supply Detroit with 40,000 tons of machine screws annually for automobile production. You will need an initial $5,800,000 investment in threading equipment to get the project started; the project will last for six years. The accounting department estimates that annual fixed costs will be $700,000 and that variable costs should be $200 per ton; accounting will depreciate the initial fixed asset investment straight-line to zero over the six-year project life. It also estimates a salvage value...
Consider a project to supply Detroit with 40,000 tons of machine screws annually for automobile production....
Consider a project to supply Detroit with 40,000 tons of machine screws annually for automobile production. You will need an initial $5,800,000 investment in threading equipment to get the project started; the project will last for 6 years. The accounting department estimates that annual fixed costs will be $700,000 and that variable costs should be $210 per ton; accounting will depreciate the initial fixed asset investment straight-line to zero over the 6-year project life. It also estimates a salvage value...
Consider a project to supply Detroit with 40,000 tons of machine screws annually for automobile production....
Consider a project to supply Detroit with 40,000 tons of machine screws annually for automobile production. You will need an initial $5,600,000 investment in threading equipment to get the project started; the project will last for 6 years. The accounting department estimates that annual fixed costs will be $600,000 and that variable costs should be $250 per ton. Further, the accounting department will depreciate the initial fixed asset investment straight-line to zero over the 6-year project life and estimate a...
Excel Hydro took a loan contract which requires a payment of $40 million plus interest two...
Excel Hydro took a loan contract which requires a payment of $40 million plus interest two years after the contract's date of issue. The interest rate on the $40 million face value is 9.6% compounded quarterly. Before the maturity date, the original lender sold the contract to a pension fund for $43 million. The sale price was based on a discount rate of 8.5% compounded semi-annually from the date of sale. Excel Hydro is also considering building a nuclear power...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT