In: Accounting

Repay an existing bank loan outstanding. The company has a $200,000 loan outstanding from a local community bank. The interest rate on the loan is 11.5 percent (fixed). Interest payments on the loan are due at the end of each year and the loan balance matures in full in five years. Repay Loan Investment (Outflow) = $200,000 Discount Rate = 10% Annual Interest On The Loan = $200,000 X 11.5% =$23,000

NPV=

Present value of loan outflow = Loan ampount*(present value factor at 10%,5 years)+interest payment*(Present value annuity factor at 10%,5years)

loan amount = $200,000

interest amount = $23,000

present value factor at 10%,5 years = 0.62092

present value annuity factor at 10%,5 years = 4.16987

Present value of loan outflow = (200,000*0.62092)+(23000*4.16987)

=$220091

Therefore NPV = $200,000-$220,091 = **-$22,091**

Ms. Caterina Weldon has applied for a loan from a local bank
and the bank has agreed to extend to her a personal loan of $
1,500,000/= over a period of 21/2 years. This
loan will be repaid in monthly installments at the end of each
month over the loan period. The proposed interest rate is 14.5%
p.a.
Required:
Prepare a loan repayments schedule for
Ms. Matemo’s loan indicating:
The Model Drivers
The constant payment
Interest payment
Principal payment,...

Your company is considering to take a loan from the local
bank.
Bank charges a 1.25% interest rate per quarter.
Then the rate 1.25*4 =5% is called ____
annual percentage rate
discount rate
compound interest rate
effective annual rate

On January 1, 2020, ABC Company borrowed $200,000 from the bank. The loan is
a 10-year note payable that requires semi-annual payments of $24,000 every
June 30 and December 31, beginning June 30, 2020. Assume the loan has a 20%
interest rate, compounded semi-annually.
Calculate the amount of the note payable at December 31, 2020 that would be
classified as a long-term liability.

Bianca took out a loan from the bank today for X. She plans to
repay this loan by making payments of 44,283 dollars per month for
a certain amount of time. If the interest rate on the loan is 1.35
percent per month, she makes her first payment of 44,283 dollars
later today, and she makes her final monthly payment of 44,283
dollars in 4 months, then what is X, the amount of the loan?
Jabari owns a pet care...

Tim Company borrowed $150,000 from a local bank on January 1, 2019.
The loan is a 5-year note payable that requires semi-annual payments
of $24,000 every June 30 and December 31, beginning June 30, 2019.
Assume the loan has a 20% interest rate, compounded semi-annually.
Calculate the amount of the note payable at December 31, 2019 that
would be classified as a long-term liability.

Franz just took out a loan from the bank for 227,674 dollars. He
plans to repay this loan by making a special payment to the bank of
36,888 dollars in 5 months and by also making equal, regular
monthly payments of X. If the interest rate on the loan is 1.06
percent per month, he makes his first regular monthly payment later
today, and he makes his last regular monthly payment made in 9
months from today, then what is...

Omar just took out a loan from the bank for 151,051 dollars. He
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You have just borrowed $200,000 to buy a condo. You will repay
the loan in equal monthly payments of $2,106.45 over the next 25
years.
a-1. What monthly interest rate are you paying
on the loan? (Do not round intermediate calculations. Enter
your answer as a percent rounded to 2 decimal places.)
Monthly
interest rate
%
a-2. What is the APR? (Do not round
intermediate calculations. Enter your answer as a whole
percent.)
APR%
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A woman arranges to repay a $1,000 bank loan in 10 equal annual
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sixth year.a. What is the amount of annual payment?b. If the woman paid the amount calculated in an on the 5th and
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annual payment to compensate...

Assume that you are a Loan Officer at the local bank. Company A
wants to get a long-term loan from your bank.
Company B wants to get a long-term loan from your bank. Company C
also wants to get a long-term loan from your bank.
The TOTAL DEBT RATIO for Company A is .70 and the TIMES INTEREST
EARNED RATIO for Company A is .70 for the year.
The TOTAL DEBT RATIO for Company B is .75 and the TIMES...

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