Stellar Inc. loans money to John Kruk Corporation in the amount of $800,000. Stellar accepts an 8% note due in 7 years with interest payable semiannually. After 2 years (and receipt of interest for 2 years), Stellarneeds money and therefore sells the note to Chicago National Bank, which demands interest on the note of 10% compounded semiannually. What is the amount Stellar will receive on the sale of the note? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)
Amount received on sale of note |
$ |
Stellar Inc. wishes to accumulate $1,300,000 by December 31, 2027, to retire bonds outstanding. The company deposits $200,000 on December 31, 2017, which will earn interest at 10% compounded quarterly, to help in the retirement of this debt. In addition, the company wants to know how much should be deposited at the end of each quarter for 10 years to ensure that $1,300,000 is available at the end of 2027. (The quarterly deposits will also earn at a rate of 10%, compounded quarterly.) (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)
Annuity of value of quarterly deposits |
$ |
Get Answers For Free
Most questions answered within 1 hours.