Question

You are the loan officer of a bank. The ABC Company wants to borrow $100,000 and...

You are the loan officer of a bank. The ABC Company wants to borrow $100,000 and repay it with four equal annual payments (first payment due one year from now). You decide that the ABC Company should pay 0.10 per year on the loan.

a. What is the annual payment?

b. Complete the following debt amortization table:

Period Amount owed(beginnig of yr) Interest Principal Amount owed(end of yr)
1 $100,000
2
3
4

c. What would be the annual payment if the first of four equal payments is due

immediately?

Business   Finance   
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
You borrow $100,000 today. You will repay the loan with 20 equal annual payments starting in...
You borrow $100,000 today. You will repay the loan with 20 equal annual payments starting in year 3 If the interest rate on the loan is 5% APR, compounded annually, how big is each payment?
If you borrow $1,800 and agree to repay the loan in four equal annual payments at...
If you borrow $1,800 and agree to repay the loan in four equal annual payments at an interest rate of 10%, what will your payment be? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. What will your payment be if you make the first payment on the loan immediately instead of at the end of the first year? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
The XYZ Company has borrowed $100,000. Payments will be made over a four-year period (first payment...
The XYZ Company has borrowed $100,000. Payments will be made over a four-year period (first payment at the end of the first year). The bank charges interest of 0.20 per year. a. The annual payment will be ________. b. The debt amortization schedule is Amount owed (beginning of period) Interest Principal 1 $100,000 2 3 4 c. If there are five payments with the first payment made at the moment of borrowing, the annual payment will be ________.
a. If you borrow $1,700 and agree to repay the loan in six equal annual payments...
a. If you borrow $1,700 and agree to repay the loan in six equal annual payments at an interest rate of 11%, what will your payment be? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. What will your payment be if you make the first payment on the loan immediately instead of at the end of the first year? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
You borrow $10,000 on January 1 and agree to pay off the loan with 10 annual...
You borrow $10,000 on January 1 and agree to pay off the loan with 10 annual end-of-year payments. Your annual effective interest rate is 5%. Complete the loan amortization table shown below for payment number 5 and payment number 6. Payment number    Payment Amount    Principal    Interest Loan Balance After Payment 5 6
You want to borrow $44,536. You must repay the loan in 6 years in equal monthly...
You want to borrow $44,536. You must repay the loan in 6 years in equal monthly payments and a single $3,319 payment at the end of 6 years. Interest rate is 3% nominal per year. What will be the loan balance immediately after the 32th payment?
You borrow ​$300,000 to buy a house over a 15​-year term. The loan is structured as...
You borrow ​$300,000 to buy a house over a 15​-year term. The loan is structured as an amortized loan with annual payments and an interest rate of 10​%. Find the information for the amortization schedule for years 1 and 2. Payment​ ($) Interest in Payment​ ($) Principal Repaid​ ($) Principal Owing at End of Year​ ($)
TURN YOUR ANSWER IN EXCEL. You borrow $100,000 for four years, at 3.5% per year. You...
TURN YOUR ANSWER IN EXCEL. You borrow $100,000 for four years, at 3.5% per year. You will make your payments yearly. First get the payment using your calculator and or Excel. Then construct a Loan Amortization Schedule using Excel
Assume you borrow $50,000 at 10% per year in- terest and you agree to repay the...
Assume you borrow $50,000 at 10% per year in- terest and you agree to repay the loan in five equal annual payments. What is the amount of the unre- covered balance immediately after you make the third payment? both excel and hand solutions , please capture the excel solution.
Your firm just acquired a bank loan in the amount of $30,000 at 6% APR. Equal...
Your firm just acquired a bank loan in the amount of $30,000 at 6% APR. Equal payments are to be made annually at the end of each year for three years. Construct the amortization table. Year# Owed Annual Payment Principal Reduction Interest New Principal 1 $30,000.00 2 3 Total
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT