A $37,000 loan at 8.2% compounded semiannually is to be repaid by equal semiannual payments over 10
Question:
a. What will be the principal component of the sixth payment?
b. What will be the interest component of the sixteenth payment?
c. How much will Payments 6 to 15 inclusive reduce the principal?
d. How much interest will be paid in the third year?
e. What will be the final payment?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 58% (17 reviews)
Given PV 37000 i 82 2 41 n 210 20 Substitute into formula 102 and sol...View the full answer
Answered By
Joseph Mwaura
I have been teaching college students in various subjects for 9 years now. Besides, I have been tutoring online with several tutoring companies from 2010 to date. The 9 years of experience as a tutor has enabled me to develop multiple tutoring skills and see thousands of students excel in their education and in life after school which gives me much pleasure. I have assisted students in essay writing and in doing academic research and this has helped me be well versed with the various writing styles such as APA, MLA, Chicago/ Turabian, Harvard. I am always ready to handle work at any hour and in any way as students specify. In my tutoring journey, excellence has always been my guiding standard.
4.00+
1+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Accounting questions
-
Jesper Parnevik borrowed $70,000 on March 1, 2006. This amount plus accrued interest at 12% compounded semiannually is to be repaid March 1, 2016. To retire this debt, Jesper plans to contribute to a...
-
Ricky Fowler borrowed $70,000 on March 1, 2015. This amount plus accrued interest at 6% compounded semiannually is to be repaid March 1, 2025. To retire this debt, Ricky plans to contribute to a debt...
-
Alex Hardaway borrowed $90,000 on March 1, 2010. This amount plus accrued interest at 12% compounded semiannually is to be repaid March 1, 2020. To retire this debt, Alex plans to contribute to a...
-
Determine the tax basis of the business asset acquired in each of the following cases: a. Firm L paid $5,950 cash plus $416 sales tax plus a $500 installation charge for a satellite dish. b. TTP Inc....
-
A company has a current ratio of 3 to 1 but would like to decrease the ratio. What types of options does it have to accomplish this?
-
Paulson Company had the following on the dates indicated: Paulson had no stock transactions in 2018, so the change in stockholders equity for 2018 was due to net income and dividends. If dividends...
-
Describe hydroplaning. How can pilots calculate the minimum speed at which hydroplaning will begin?
-
Now assume that a court finds that the new rule is merely interpretive. What effect would this determination have on whether the SEC had to follow the APAs rulemaking procedures? Assume that the...
-
Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also included are fair values for Sol Company accounts. Cash Padre Company Book Values 12/31 Sol...
-
A Global private bank is aggressively looking to leverage technology to improve customer experience and reduce operational costs. Over the last few years, it has tied up with at least five startups...
-
A $30,000 loan at 6.7% compounded annually requires monthly payments of $450. a. Calculate the interest component of Payment 29. b. Calculate the principal component of Payment 65. c. Calculate the...
-
A 10-year annuity providing a rate of return of 5.6% compounded quarterly was purchased for $25,000. The annuity makes payments at the end of each quarter. a. How much of the twenty-fifth payment is...
-
The following appeared as the opening paragraph in an article appearing in the Wall Street Journal (March 31, 2010): SHANGHAIChina will launch its long-awaited trial program for margin trading and...
-
What is the current status of the Doha Round of multilateral trade negotiations? Is the agreement moving forward?
-
An article in Forbes noted that the Intercounty Connector toll road that connects two counties in Maryland was not generating as much toll revenue as predicted. At that time, the toll rate was $8 for...
-
We often observe that items such as different brands of aspirin, gasoline, and tomato sauce are typically priced the same, particularly when consumers can find these goods in close proximity to each...
-
In your context, identify some prevent and detect controls. Discuss how effective they are, whether they could be improved and whether they could be replaced or even abandoned.
-
Between 2000 and 2017, real GDP per person grew, on average, 1% per year in the United States. Did this GDP growth benefit all Americans? What does this tell us about the limitations of GDP as a...
-
The diagram shows part of a circle centre O, with radius 12 cm, and a straight line AB. The length of AB is 12 cm. Find the perimeter of the shape. A 0 0 B
-
Refrigerant R-12 at 30C, 0.75 MPa enters a steady flow device and exits at 30C, 100 kPa. Assume the process is isothermal and reversible. Find the change in availability of the refrigerant.
-
Bad-Debt ReportingAging Mani Low Corporation operates in an industry that has a high rate of bad debts. Before any year-end adjustments, the balance in Mani lows Accounts Receivable account was...
-
Bad-Debt Reporting from inception of operations to December 31, 2010, Fortner Corporation provided for uncollectible accounts receivable under the allowance method: provisions were made monthly at 2%...
-
Bad-Debt Reporting Presented below is information related to the Accounts Receivable accounts of Gulistan Inc. during the current year 2010. 1. An aging schedule of the accounts receivable as of...
-
Kaplan Inc. had 100,000 in unit-sales during the last quarter of last year. Managers expect the sales to increase by 10% each quarter over the next four quarters. The selling price is expected to...
-
This article titled "Evaluating Monetary Policy with Inflation Bands and Horizons 2023 -05 Troy Davig and Andrew Foerster February 21, 2023" discusses how monetary policy affects different sectors of...
-
Corporate governance is the set of rules, processes, and policies that guide and govern a business as it operates and manages risk. Tax laws have existed since the 1800s, and the history, Scope, and...
Study smarter with the SolutionInn App