Consider a 4-year redemption loan. You initially borrow $2,700 and repay it in four equal annual year-end
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Question:
Consider a 4-year redemption loan. You initially borrow $2,700 and repay it in four equal annual year-end payments. |
A. | If the interest rate is 10%, what is the annual payment? (Do not round intermediate calculations. Round your answer to 2 decimal places.) |
annual payment | $ |
B. | Prepare a depreciation plan. (Do not leave any cells blank - be sure to enter "0" where appropriate. Do not round intermediate calculations. Round your answers to 2 decimal places.) |
Time | Credit Balance, $ | Year-End Interest Payable on Loan Balance, $ | Total Year-end Payment, $ | Depreciation of Loan, $ | |||||
1 | |||||||||
2 | |||||||||
3 | |||||||||
4 | |||||||||
5 |
Related Book For
Introduction To Corporate Finance
ISBN: 9781118300763
3rd Edition
Authors: Laurence Booth, Sean Cleary
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