Question

Kingsley Toyota borrowed $170,000 from a local bank. The loan requires Kingsley to pay 14 equal...

Kingsley Toyota borrowed $170,000 from a local bank. The loan requires Kingsley to pay 14 equal annual installments beginning one year from today. Assume an interest rate of 6%. 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.)

Table or calculator function:
Loan Amount:
n =
i =
Loan Payment:
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Answer.

Table of calculator function:

 PVA of $1
Loan Amount: $170,000
                                    n=    14
                                   I= 6%
Loan Payment = 170000/9.29498 = $                     18,289
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Canliss Mining Company borrowed money from a local bank. The note the company signed requires five...
Canliss Mining Company borrowed money from a local bank. The note the company signed requires five annual installment payments of $20,000 beginning one year from today. The interest rate on the note is 9%.(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.) What amount did Canliss borrow? (Round your final answers to nearest whole dollar amount.) Table or calculator function: Payment: n =...
Harding Company is in the process of purchasing several large pieces of equipment from Danning Machine...
Harding Company is in the process of purchasing several large pieces of equipment from Danning Machine Corporation. Several financing alternatives have been offered by Danning: ((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.) 1. Pay $1,180,000 in cash immediately. 2.Pay $481,000 immediately and the remainder in 10 annual installments of $98,000, with the first installment due in one year. 3. Make 10...
Harding Company is in the process of purchasing several large pieces of equipment from Danning Machine...
Harding Company is in the process of purchasing several large pieces of equipment from Danning Machine Corporation. Several financing alternatives have been offered by Danning: (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.) 1. Pay $1,050,000 in cash immediately. 2. Pay $441,000 immediately and the remainder in 10 annual installments of $92,000, with the first installment due in one year. 3. Make...
Harding Company is in the process of purchasing several large pieces of equipment from Danning Machine...
Harding Company is in the process of purchasing several large pieces of equipment from Danning Machine Corporation. Several financing alternatives have been offered by Danning: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1. Pay $1,080,000 in cash immediately. 2. Pay $481,000 immediately and the remainder in 12 annual installments of $75,000, with the first installment due in one year. 3. Make 12...
Harding Company is in the process of purchasing several large pieces of equipment from Danning Machine...
Harding Company is in the process of purchasing several large pieces of equipment from Danning Machine Corporation. Several financing alternatives have been offered by Danning: (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.) 1. Pay $1,070,000 in cash immediately. 2. Pay $400,000 immediately and the remainder in 12 annual installments of $80,000, with the first installment due in one year. 3. Make...
Harding Company is in the process of purchasing several large pieces of equipment from Danning Machine...
Harding Company is in the process of purchasing several large pieces of equipment from Danning Machine Corporation. Several financing alternatives have been offered by Danning: ((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.) 1. Pay $1,210,000 in cash immediately. 2.Pay $471,000 immediately and the remainder in 10 annual installments of $95,000, with the first installment due in one year. 3. Make 10...
Park Co. is considering an investment that requires immediate payment of $26,945 and provides expected cash...
Park Co. is considering an investment that requires immediate payment of $26,945 and provides expected cash inflows of $8,500 annually for four years. Park Co. requires a 7% return on its investments. 1-a. What is the net present value of this investment? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.) Cash Flow Select Chart Amount x PV Factor = Present...
Lowlife Company defaulted on a $240,000 loan that was due on December 31, 2018. The bank...
Lowlife Company defaulted on a $240,000 loan that was due on December 31, 2018. The bank has agreed to allow Lowlife to repay the $240,000 by making a series of equal annual payments beginning on December 31, 2019. (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.) Required: 1. Calculate the required annual payment if the bank’s interest rate is 10% and four...
Lowlife Company defaulted on a $270,000 loan that was due on December 31, 2021. The bank...
Lowlife Company defaulted on a $270,000 loan that was due on December 31, 2021. The bank has agreed to allow Lowlife to repay the $270,000 by making a series of equal annual payments beginning on December 31, 2022. (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.) Required: 1. Calculate the required annual payment if the bank’s interest rate is 10% and four...
A company is considering investing in a new machine that requires a cash payment of $51,939...
A company is considering investing in a new machine that requires a cash payment of $51,939 today. The machine will generate annual cash flows of $20,885 for the next three years. What is the internal rate of return if the company buys this machine? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Amount Invested -    Annual Net Cash Flow = Present Value Factor Internal Rate of Return...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT