Question

5. Mr. Smart borrowed $25,000 from a bank on annuity for 2 years at 10% annual...

5. Mr. Smart borrowed $25,000 from a bank on annuity for 2 years at 10% annual interest compounded and payable semiannually (every six months). Calculate the semiannual payments and provide a table that shows periodic payment, balance, interest payment, payment to principal for each payment as well as total amount which Mr. Smart will pay to the bank for the borrowed amount including interest and principal payments in the entire period of two years.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

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
Ms. Klein borrowed $2,000 from a bank on annuity for 2 years at 10% annual interest...
Ms. Klein borrowed $2,000 from a bank on annuity for 2 years at 10% annual interest compounded and payable semiannually (every six months). Calculate the semiannual payments and provide a table that shows semiannual payment, balance, interest payment, payment to principal for each payment as well as total amount which Ms. Klein will pay to the bank for the borrowed amount including interest and principal payments in the entire period of two years.
4. Ms. Klein borrowed $2,000 from a bank on annuity for 2 years at 10% annual...
4. Ms. Klein borrowed $2,000 from a bank on annuity for 2 years at 10% annual interest compounded and payable semiannually (every six months). Calculate the semiannual payments and provide a table that shows semiannual payment, balance, interest payment, payment to principal for each payment as well as total amount which Ms. Klein will pay to the bank for the borrowed amount including interest and principal payments in the entire period of two years.   
4. Ms. Klein borrowed $2,000 from a bank on annuity for 2 years at 10% annual...
4. Ms. Klein borrowed $2,000 from a bank on annuity for 2 years at 10% annual interest compounded and payable semiannually (every six months). Calculate the semiannual payments and provide a table that shows semiannual payment, balance, interest payment, payment to principal for each payment as well as total amount which Ms. Klein will pay to the bank for the borrowed amount including interest and principal payments in the entire period of two years.
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...
Q2) An engineer borrowed $3000 from the bank, payable in six equal end-of-year payments at 8%....
Q2) An engineer borrowed $3000 from the bank, payable in six equal end-of-year payments at 8%. The bank agreed to reduce the interest on the loan if interest rates declined in the United States before the loan was fully repaid. At the end of 3 years, at the time of the third payment, the bank agreed to reduce the interest rate from 8% to 7% on the remaining debt. What was the amount of the equal annual end-of-year payments for...
On January 1, 2024, ABC Company borrowed $187,000 from the bank. The loan requires annual payments...
On January 1, 2024, ABC Company borrowed $187,000 from the bank. The loan requires annual payments of $40,600 every December 31, beginning December 31, 2024. Assume the loan has an interest rate of 10% compounded annually. Calculate the amount of the note payable at December 31, 2025 that would be classified as a current liability.
On January 1, 2024, ABC Company borrowed $182,000 from the bank. The loan requires annual payments...
On January 1, 2024, ABC Company borrowed $182,000 from the bank. The loan requires annual payments of $25,200 every December 31, beginning December 31, 2024. Assume the loan has an interest rate of 10% compounded annually. Calculate the amount of the note payable at December 31, 2025 that would be classified as a current liability.
On January 1, 2024, ABC Company borrowed $215,000 from the bank. The loan requires annual payments...
On January 1, 2024, ABC Company borrowed $215,000 from the bank. The loan requires annual payments of $29,100 every December 31, beginning December 31, 2024. Assume the loan has an interest rate of 10% compounded annually. Calculate the amount of the note payable at December 31, 2025 that would be classified as a current liability.
On January 1, 2020, ABC Company borrowed $200,000 from the bank. The loan is a 10-year...
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.
2) Gertrude has borrowed $6000 from her bank to buy a new machine for her business....
2) Gertrude has borrowed $6000 from her bank to buy a new machine for her business. She has promised to make payments of $2000 after two years, $2500 after three years, and a final payment after five years. What is the size of the last payment, if interest is 8% compounded semiannually? *Please use financial calculator method and show the values being entered for PY, CY, I, N, PMT, FV, PV along with your final answer*
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT