Hello this is every important so can you please help me and get it right? It’s due in 2 hours and I’m stuck so please help asap Question 2 of 16A design studio received a loan of $8,850 at 5.60% compounded semi-annually topurchase a camera. If they settled the loan in 2 years by making semi-annual payments,construct the amortization schedule for the loan and answer the following questions.a. What was the payment size?Round to the nearest centb. What was the size of the interest portion on the first payment?Round to the nearest centc. What was the balance of the loan at end of the first year?Round to the nearest cent

Amortization: It represents the process of paying the loan by making periodic payments. These…

a. What was the payment size? Round to the nearest cent b. What was the size of the interest portion on the first payment? Round to the nearest cent c. What was the balance of the loan at end of the first year?

a. What was the payment size? Round to the nearest cent b. What was the size of the interest portion on the first payment? Round to the nearest cent c. What was the balance of the loan at end of the first year?

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

See similar textbooks

Related questions

Q: Outline four factors that determine the choice of the best technique of risk control for a small…

A: A small business is a privately owned corporation, partnership, or sole proprietorship having fewer…

Q: ABC Bank has two loans of $20,000 each, with the following characteristics: Loan A has an expected…

A: Expected return of portfolio is given by the formula: Expected return = W1*R1 + W2*R2+…

Q: Explain how the Du Pont system of analysis breaks down return on assets. Also explain how it breaks…

A: A stakeholder is defined as a "person or group that has an interest in any decision or action of an…

Q: Quantitative Problem: Potter Industries has a bond issue outstanding with an annual coupon of 6% and…

A: a) excel formula sheet is:

Q: If you thought that interest rates were going to rise in the next few months, how might this affect…

A: A down payment is the amount paid by the purchaser in the early stages of purchasing an expensive…

Q: Consider the two mutually exclusive investment projects given in the table below for which MARR =…

A: Project A's initial cost is less than Project B's initial cost. As a result, consider A to be the…

Q: XYZ plans to construct an additional building at the end of 10 years fo an estimated cost of…

A: Here we will use the concept of time value of money. As per the concept of time value of money it is…

Q: Ordinary Annuity: 1. Tim deposits P750 every end of 3 months in an account paying 5% interest…

A: Here we will use the concept of time value of money. As per the concept of time value of money it is…

Q: Replacement Analysis The Everly Equipment Company's flange-lipping machine was purchased 5 years…

A: Given in this question,

Q: Consider the following information for stocks A, B, and C. The returns on the three stocks are…

A: Given is the information for the stocks A, B, and C. Stock Expected Return Standard Deviation…

Q: The Ruffins are negotiating with two banks for a mortgage to buy a house selling for $195,000. The…

A: Here, To Find: From which bank the loan will be taken =?

Q: at markets are free of arbitrage opportunities?

A: Arbitrage opportunities are a type of strategy in which an investor tries the same asset in…

Q: How many years will it take for an investment to be twice its value if it earns 8% compounded…

A: We need to use rule of 72 to calculate number of years to double the investment. t=72/i where t=…

Q: Quantitative Problem: You are holding a portfolio with the following investments and betas: Stock…

A: The portfolio require return is calculated with the help of CAPM equation

Q: ANSWER ALREADY GIVEN. JUST PROVIDE SOLUTION Shoppe Marketing launched a new sales promotional…

A: Based on its relative standalone selling price, the transaction price is allocated to the…

Q: A 5-year project will require an investment of $100 million. This comprises of plant and machinery…

A: Cash flows Cash flows include only cash dealt items. In general, while calculating net earnings,…

Q: Given a 10% interest rate, what is the equivalent uniform annual worth of a system, given the…

A: The equal annual net cash flow is known as the equivalent uniform annual worth. It is calculated by…

Q: Loans Loan Expected Standard Amount Return Deviation A $ 15 8.1% 1.1% million В $ 15 9.2% 1.3%…

A: The following solution is given below:

Q: xplain why net operating cash flows and net income are trending together or differen ....

A: Since there are multiple questions are given but as per answering guidelines we do only first one.

Q: the interest rate om 56,000 loan is 8.4% compounded semiannually. quarterly payments will years…

A: Given, PV = 56,000Interest= 8.4% Semiannually Compund frequency CY=2 Payment frequecy = PY = 4…

Q: Stock A has a capital gains yield of 10% and a dividend yield of 4%. Stock B has a capital gains…

A: The return that a security must generate to satisfy the expectations of investor is called required…

Q: The Paulson Company's year-end balance sheet is shown below. Its cost of common equity is 15%, its…

A: The Weighted Average Cost of Capital(WACC) refers to the financial ratio that calculates the overall…

Q: Stock A has a capital gains yield of 6.5% and a dividend yield of 1.5%. Stock B has a capital gains…

A: Given information is regarding two stocks A and B. Capital gains of A = 6.5% Dividend yield of A=…

Q: Torch Industries can issue perpetual preferred stock at a price of $61.00 a share. The stock would…

A: Cost of preferred stock = Annual dividend / Stock price where, Annual dividend = $4.50 Stock price =…

Q: 3. Complete the decision rule for the IRR method. If then the project is economically justified.

A: To select the project based on IRR, IRR should be greater than required rate of return. If IRR is…

Q: A car costs $19,900. Alternatively, the car can be leased for 6 years by making payments of $251 at…

A: Lease monthly payment (L) = $251 Lease final payment (F) = $5692 Interest rate = 6% semiannually…

Q: 4. Complete the decision rule for the ERR method. If, then the project is economically justified.

A: Project is economically Justified in these cases:

Q: Compute for EOQ for Company with Annual Usage of 32,000 units in 360 working days, Ordering cost of…

A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: 5c. An elective project is currently under review. It requires an initial investment of $116,000 for…

A: In capital budgeting, the economic rate of return is used to compare or quantify the investment's…

Q: An elective project is currently under review. It requires an initial investment of $116,000 for…

A: IRR is the Internal rate of return. It is that rate at which the NPV of a project is zero.

Q: Carson Electronics’ management has long viewed BGT Electronics as an industry leader and uses this…

A: Financial ratios are created using financial statement figures to provide meaningful information…

Q: TY DUE: (please DON’T use excel) A sala set is bought for P2,500 down payment and P750 payable at…

A: Cash price today is the equivalent that is equivalent to the monthly payment and down payment that…

Q: 28. Venture investors' returms depend on the venture's ability to generate cash flows or to find an…

A: Venture investors' returnd depend on the venture's ability to generate cash flows or to find an…

Q: What is the present worth of P500 deposited at the end of every month for 6 years if the interest…

A: Present Value: The present value is the value of cash flow stream or the fixed lump sum amount at…

Q: A with a total investment value of Rp. 500,000,000,- The ect is 5 years old. Based on the…

A: Net present value is the difference between present value of cash flow and initial investment of the…

Q: Instead of paying 100,000 in an annual rent for offices space at the beginningof each year for the…

A: An interest rate is defined as the percentage value that helps in comparing the financial products.…

Q: Three investments cost $7,000 each and have the following cash flows. Rank them on the basis of…

A: The payback period is the time to recover the cost of investment.

Q: 3. A stock price is currently $100. It is known that after 3 months it will either go up by 10% or…

A: Solution : If Value of Call was come lower as compared to Current price of call in market then…

Q: A factory has decided to purchase some new equipment for P650, 000. The equipment will be kept for…

A: Solution : We Can Calculate the WDV Deprecation rate by following Formulas. WDV Rate…

Q: Carson Electronics’ management has long viewed BGT Electronics as an industry leader and uses this…

A: To Find: Debt ratio Average collection period Fixed asset turnover Return on equity

Q: If you pay a price to buy a bond that is below its value, you will get a return that is lower than…

A: The statement is false

Q: Lena is regularly saving money in order to buy a new car at the end of 7 years. If the car is 30,000…

A: Cost of Car is 30,000EUR Interest rate is 2% Time period is 7 years or 7×12 = 84 months To Find:…

Q: download financial statements for omantel company for 2021 and posted then calculate Earnings per…

A: The full name is Oman Tourism Development Company (OMRAN), which was established in 2005 by the…

Q: I want 800000 for retirement in 25 years. How much would she need to deposit into the account each…

A: Future value (FV) = 800,000 Period = 25 Years Number of monthly deposits (n) = 25*12 = 300 Interest…

Q: Q.No. 3 Deep Manufacturers information is provided for the production of two product lines named as…

A: Given, The information of Deep Manufacturers with production of two product lines namely pen and…

Q: A project is estimated to cost P120T, last 8 years & have a salvage value of P20T. The annual gross…

A: Here, Initial investment = P 120,000 Time period = 8 years Salvage value = P 20,000 Annual income =…

Q: 1- Ordinary shares 600 dinars 2- The ratio of current assets to equity is 70% 3- The quick ratio is…

A: The assets of firm consist of current assets and fixed assets and total assets must be equal to…

Q: Calculate the required rate of return for Mudd Enterprises assuming that investors expect a 3.2%…

A: Capital Asset Pricing Model (CAPM): CAPM is the method of calculating the expected return on…

Q: ЕРТ What will be the price of the bond in Example 10.10 in yet another year, when only one vesr…

A: Given we are only required to answer the question 10.5

Q: 6. An elective project is currently under review. One alternative requires an initial investment of…

A: Here, MARR = 10% IRR of second alternative = 18.69% To Find: Best alternative =?

Concept explainers

Management Information Systems

While undertaking any business decisions, data is the most important aspect. An information system (IS) is a set of data, computing devices and management methods that support routine company operations. A management information system (MIS) is a specific subset of IS.

Question

Hello this is every important so can you please help me and get it right? It’s due in 2 hours and I’m stuck so please help asap

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Step 5

Step 6

Step by step

Solved in 6 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

A design studio received a loan of $8,950 at 5.60% compounded semi-annually to purchase a camera. If they settled the loan in 2 years by making quarterly payments, construct the amortization schedule for the loan and answer the following questions: a. What was the payment size? Round to the nearest cent b. What was the size of the interest portion on the first payment? ← a acer SUBMIT QUESTION SAVE PROGRESS V SUBMIT ASSIC
A design studio received a loan of $6,800 at 4.10% compounded semi-annually to purchase a camera. If they settled the loan in 2 years by making quarterly payments, construct the amortization schedule for the loan and answer the following questions: a. What was the payment size? Round to the nearest cent b. What was the size of the interest portion on the first payment? Round to the nearest cent c. What was the balance of the loan at end of the first year? Round to the nearest cent d. What was the size of the interest portion on the last payment? Round to the nearest cent
A design studio received a loan of $5,850 at 4.40% compounded semi-annually to purchase a camera. If they settled the loan in 2 years by making quarterly payments, construct the amortization schedule for the loan and answer the following questions: a. What was the payment size? Round to the nearest cent
Carry out the amortization table of an automobile loan that is canceled with 36 monthly payments of $ 5,750, at an interest rate of 25.20% per annum, compounded by months, to. Make the amortization table for this case that contains: payment, interest, payment to capital and unpaid balance. b. What is the unpaid balance after making payment number 15? c. What is the unpaid balance after making payment number 30?
Given a loan amount P, an annual interest rate r, and the length of the loan in years, find the monthly payment R necessary to pay off the loan by completing parts a through c. Represent the number of monthly payments by n. Amount Rate Time $50,000 5% 20 years Question content area bottom Part 1 a. Calculate P1+r12n and call this number A. A=enter your response here (Round to two decimal places as needed.) Part 2 b. Calculate 1+r12n−1r12 and call this number B. B=enter your response here (Round to two decimal places as needed.) Part 3 c. Let R = AB. The monthly payment necessary to pay off the loan is R=$enter your response here. (Round up to the nearest cent.)
A fully amortizing CAM loan is made for $132,000 at 6 percent interest for 20 years. Required: a. What will be the payments and balances for the first six months? b. What would payments be for a CPM loan? c. If both loans were repaid at the end of year 5, would the lender earn a higher rate of interest on either loan? Complete this question by entering your answers in the tabs below. Required A Required B Required C What will be the payments and balances for the first six months? (Round your intermediate calculations and final answers to the 2 decimal places.) Month 1 Month 2 Month 3 Total Payment End Balance
Find the monthly house payments necessary to amortize the following loan. Then calculate the total payments and the total amount of interest paid. $201,000 at 7.02% for 15 years Question content area bottom Part 1 The monthly payments are (Round to the nearest cent.) Part 2 The total amount paid on the loan is (Round to the nearest cent.) Part 3 The total amount of interest paid is (Round to the nearest cent.)
Fill in an amortaization table for a loan of $9,300 to be paid back over 4 years, at an annual interest rate of 1.2% compounded semiannually. At each step, round your answers to the nearest cent and use these values to calculate the next. Payment Number Payment Amount Payment Amount to Interest Payment Amount to Debe Outstanding Pri 9300 2 3. 4 5. 6. 7. 8.
Give typing answer with explanation and conclusion A 10-year loan of L is prepaid by the amortization method with payments of $1,000 at the end of each year. The annual effective interest rate is i. The total amount of interest repaid during the life of the loan is also equal to L. Calculate the amount of interest paid during the first year. (show formula and step by step solution)
1. Mark applied for a business loan of Php 100,000 to be amortized by equal payments at 4 years at 10% compounded monthly. How much is the amount of amortization? III. Construct the amortization table for test II.
Assessment I. Construct an amortization table for a loan of PHP1000 to be paid in 4 annual payments at 10% annual effective interest rate. Complete the table below. Periodic Starting Balance Payment Principal Remaining Balance Period Interest 1. 1,000 100.00 784.53 2 784.53 315.47 237.02 315.47 54.75 286.79 4 286.79 315.47 0.00 3.
Part a. Loan payments you borrow $100,000 over a period of 30 years at a fixed APR of 5.5% calculate the monthly payment Part b. Determine the total amount paid, then figure out what percentage is paid towards the principal and what percentage is paid for interest. Please solve part A and B they go together. I included an example problem