Assume the payments will be made at the end of each year (The first payment is...

Assume the payments will be made at the end of each year (The first payment is made on December 31, 2019.); recalculate your answer for case # 3. Calculate the annual payment required. Show your final answer and show all the work to support your answer. Prepare the amortization table for the loan using the format covered in class.

Case #3 info: On January 1, 2019, ABC Corp. borrowed $81,000 by signing an installment loan. The loan will be repaid in 20 equal payments, one at the beginning of each year. The first payment is made on January 1, 2017. The interest rate for the loan is 10%.

Solutions

Expert Solution

Since the format covered in your class is not with me, I am providing here a basic format which you can refer to make as per the format covered in your class.

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

The debt is amortized by equal payments made at the end of each payment interval. Compute...

The debt is amortized by equal payments made at the end of each payment interval. Compute (a) the size of the periodic payments; (b) the outstanding principal at the time indicated; (c) the interest paid by the payment following the time indicated for finding the outstanding principal; and (d) the principal repaid by the same payment as in part c. Debt Principal Repayment Period Payment Interval Interest Rate Conversion Period Outstanding Principal After: $16,000.00 8 years 6 months 3 %...

A)A sequence of quarterly payments o P6,267 each, with the first payment due at the end...

A)A sequence of quarterly payments o P6,267 each, with the first payment due at the end of 2 years and the last payment at the end of 13 years. Find the present worth of these payments if money is worth 5% compounded quarterly. B)A manufacture borrows P2,211,340 with interest at 6% compounded monthly, and agrees to discharge the loan by a sequence of equal monthly payments for 4 years with the first payment at the beginning of the 4th year. Find...

Find the amount of each of 5 payments made at the end of each year into...

Find the amount of each of 5 payments made at the end of each year into a 6% rate sinking fund which produces $21,000 at the end of 5 years. A. $2,053.18 B. $3,514.46 C. $3,725.32 D. $4,200.00

Equal end-of-period semiannual payments of $500, increasing by $100 with each subsequent payment, are made to...

Equal end-of-period semiannual payments of $500, increasing by $100 with each subsequent payment, are made to a fund paying 10 percent compounded continuously. What will the fund amount to after 7 years? What is the present worth equivalent of the total set of payments? What is the equal semiannual equivalent amount of the payments?

Equal end-of-period semiannual payments of $500, increasing by $100 with each subsequent payment, are made to...

Assume a 30-year, $600,000, 6% mortgage with annual payments. 16. Assume the first payment beginning in...

Assume a 30-year, $600,000, 6% mortgage with annual payments. 16. Assume the first payment beginning in exactly one year, what is the annual payment? 17. What is the outstanding mortgage balance after you have made 10 payments? 18. If the loan calls for monthly payments, what is the monthly payment? Assume you have a 6% 30-year mortgage for $100,000 with now 10 years to maturity (annual payments with exactly one year to the next payment). You are considering a refinance...

Assume you are to receive a 10-year annuity with annual payments of $800. The first payment...

Assume you are to receive a 10-year annuity with annual payments of $800. The first payment will be received at the end of year 1, and the last payment will be received at the end of year 10. You will invest each payment in an account that pays 7 percent compounded annually. Although the annuity payments stop at the end of year 10, you will not with draw any money from the account until 20 years from today, and the...

A 30-year annuity has end-of-month payments. The first year the payments are $120 each. In subsequent...

A 30-year annuity has end-of-month payments. The first year the payments are $120 each. In subsequent years the monthly payment increases by $5 over what it was the previous year. Find the accumulated value of this annuity if AEIR=3% A. 84,820 B. 42,390 C. 105,070 D. 100,620 E. 41,560

A 13-year annuity pays $1,400 per month, and payments are made at the end of each...

A 13-year annuity pays $1,400 per month, and payments are made at the end of each month. The interest rate is 12 percent compounded monthly for the first Five years and 11 percent compounded monthly thereafter. Required: What is the present value of the annuity? A) $1,343,944.86 B) $109,755.50 C) $111,995.40 D) $152,061.20 E) $114,235.31

A 15-year annuity pays $1,500 per month, and payments are made at the end of each...

A 15-year annuity pays $1,500 per month, and payments are made at the end of each month. If the interest rate is 10 percent compounded monthly for the first seven years, and 6 percent compounded monthly thereafter, what is the present value of the annuity?

Subjects