Question

An artist borrows $380,000 for her art project. At 15% APR compounded quarterly over 5 years,...

An artist borrows $380,000 for her art project. At 15% APR compounded quarterly over 5 years, with payments of $20,000 made at the end of each quarter. How much will she still be owing after 1 year?
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Quarterly rate = 15%/4 =3.75%

Quarter opening(a) interest 3.75%(b) total(c=a+b) Payment(d) Closing(d-c)
1 $3,80,000.00 $      14,250.00 $3,94,250.00 $20,000.00 $3,74,250.00
2 $3,74,250.00 $      14,034.38 $3,88,284.38 $20,000.00 $3,68,284.38
3 $3,68,284.38 $      13,810.66 $3,82,095.04 $20,000.00 $3,62,095.04
4 $3,62,095.04 $      13,578.56 $3,75,673.60 $20,000.00 $3,55,673.60
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
M. Oocher borrows $15,000 from Al Ender.  The debt is to be repaid quarterly over 6.5 years.  If...
M. Oocher borrows $15,000 from Al Ender.  The debt is to be repaid quarterly over 6.5 years.  If the money is lent at a nominal rate of 4.4% per year, compounded 4 times per year, what are the periodic payments at the end of each 3-months?
M. Oocher borrows $15,000 from Al Ender. The debt is to be repaid quarterly over 6.5...
M. Oocher borrows $15,000 from Al Ender. The debt is to be repaid quarterly over 6.5 years. If the money is lent at a nominal rate of 4.4% per year, compounded 4 times per year, what are the periodic payments at the end of each 3-months?
Mary’s Manufacturing borrows $100,000 from a bank. The loan has to be repaid over 7 years,...
Mary’s Manufacturing borrows $100,000 from a bank. The loan has to be repaid over 7 years, but the regular payments are calculated as though it were a 14 year loan. Payments are due quarterly. The APR is 12%. What is the regular payment (quarters 1 through 19)? What is the total payment due in the last quarter (quarter 20)?
Ellen borrowed $25,000 from a loan shark at the APR of 35%, compounded monthly. The entire...
Ellen borrowed $25,000 from a loan shark at the APR of 35%, compounded monthly. The entire amount, principal plus interest, is to be repaid at the end of five years. This loan shark is not a nice person and Ellen is a little nervous, so she starts a savings account in her local bank. The bank pays interest at the APR of 8%, compounded quarterly. Ellen will make 20 equal quarterly deposits into her account, then, right after the last...
1) You receive a $20,000, 8% (APR) 5-year amortized loan. How much would be your payment...
1) You receive a $20,000, 8% (APR) 5-year amortized loan. How much would be your payment if: -Make payments at the end of the year. -Make payments at the end of the quarter. -Make payments at the end of the month. -How much you end up paying back to the bank over the 5 years under each payment period?
A woman borrows ​$4000 at 12​% compounded​ monthly, which is to be amortized over 3 years...
A woman borrows ​$4000 at 12​% compounded​ monthly, which is to be amortized over 3 years in equal monthly payments. For tax​ purposes, she needs to know the amount of interest paid during each year of the loan. Find the interest paid during the first​ year, the second​ year, and the third year of the loan.
a) Find the future value of an ordinary annuity of $4,000 paid quarterly for 9 years,...
a) Find the future value of an ordinary annuity of $4,000 paid quarterly for 9 years, if the interest rate is 8%, compounded quarterly. (Round your answer to the nearest cent.) $ = b) Patty Stacey deposits $1600 at the end of each of 5 years in an IRA. If she leaves the money that has accumulated in the IRA account for 25 additional years, how much is in her account at the end of the 30-year period? Assume an...
A person borrows $20,000 at an annual effective interest rate of 5%. The loan is to...
A person borrows $20,000 at an annual effective interest rate of 5%. The loan is to be repaid in level annual end of year payments over 15 years. Show the row for the amortization schedule at the end of the seventh year.
Gloria borrows 100,000 to be repaid over 30 years. You are given: (i) Her first payment...
Gloria borrows 100,000 to be repaid over 30 years. You are given: (i) Her first payment is X at the end of year 1. (ii) Her payments increase at the rate of 100 per year for the next 19 years and remain level for the following 10 years. (iii) The effective rate of interest is 5% per annum. Calculate X Ans: 5505
Ingrid wants to buy a ​$17000 car in 5 years. How much money must she deposit...
Ingrid wants to buy a ​$17000 car in 5 years. How much money must she deposit at the end of each quarter in an account paying ​5.9% compounded quarterly so that she will have enough to pay for her​ car?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT