Question: Lets say that the restaurant owner in Problem 4 above decides to go with the amortized loan option and after having paid 2 payments decides

Let’s say that the restaurant owner in Problem 4 above decides to go with the amortized loan option and after having paid 2 payments decides to pay off the balance. Using an amortization schedule calculate his payoff amount.
Amount of loan = $50,000; Interest rate = 8%; Term = 5 years
Annual payment = $12,522.82

Step by Step Solution

★★★★★

3.34 Rating (175 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

AMORTIZATION SCHEDULE Year Beg Bal Payment Interest Prin Red En... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

296-B-F-F-M (2442).docx

120 KBs Word File

Students Have Also Explored These Related Finance Questions!

Cust Dehavior SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that its total annual overhead costs can be represented by the following formula: Overhead...

The restaurant owner in Problem 2.91 continues to learn more about the weekend patterns of patron demand. For each patron, the owner has collected and stored in Patrons the gender, the entre ordered,...

Option payoff profiles: a. Construct an option position (a combination of calls and/or puts) with the same risk profile (v$/SFr versus s$/SFr) as a forward contract to buy SFr for dollars at an...

Loan Amortization. Lets say that the restaurant owner in Problem 4 above decides to go with the amortized loan option and after having paid two payments decides to pay off the balance. Using an...

Bobby is in the process of taking a five-year loan of $50,000 with a bank. The bank offers three payment options: Pay all of the interest (8% for each year) and principal in one lump sum at the end...

2. (2 points) In what month will the borrower begin paying more towards principal month than interest? 3. (2 points) What is the total amount of interest the borrower will pay over the life of this...

PowerPoint Assignment for BUS 401: Principles of Finance You have been asked by a manager in your organization to put together a training program explaining Net Present Value (NPV) and Future Value...

Dr.Ramsey Please assist me with my discussion post. Subject: Annuities Systematic risk evaluates the probability and extent of negative consequences to the larger body. For example, the government...

See page 129- 137 on attachment for more details there are five steps to the project. Step 1: Create the loan amortization schedule for the property. Step 2: Create the depreciation schedule. Step 3:...

only numbers 3,4 and 5 thank you TAXES! When it comes to how the American household is taxed, every family is different. We will start with a model suggesting that the average U.S. household earns a...

1. What federal departments and agencies are charged with homeland security? 2. What are the characteristics of homegrown terrorists? 3. How did bin laden and Zawahiri create a new organization in...

Lancer, Inc. (a U.S.-based company), establishes a subsidiary in Croatia on January 1, 2019. The following account balances for the year ending December 31, 2020, are stated in kuna (K), the local...

Uncorrected misstatement 1 : Credit sales are overstated with R 7 4 1 0 0 0 ( including VAT ) due to invoice D 3 1 that was recorded on 3 0 June 2 0 2 5 but the furniture was only delivered to the...

Supreme Court Justice Stevens strongly dissented with the majority decision in the MLBPA v. Garvey decision above. Stevens argued that even in cases where the court sees clearly that the arbitrator's...

Why should a company attempt to speed up its receivables and slow down its payables?

Why is it often a good practice to simply write off a bad debt rather than pursue payment from a credit customer?

Should a company take all discounts offered by its suppliers? What criteria should be used when accepting or rejecting a discount on an invoice?

Assume that you have been given the following financial statement data (in $ millions) for KRJ Corporation. Note that all data are represented in absolute value terms and that not all of the...

The American Opportunity Credit is characterized by all of the following EXCEPT: It can be claimed only for the first four years of a post - secondary education The maximum annual credit amount is $...

{a} Find tom when it = 9. {b} Find tU_025 when 1:216. (cl Find 1030 when 1: =13. Click here to View:r age 1 of the table of critical values of the tdistributien. Click here to View:r age 2 of the...