Question: A loan of $245,000 is to be repaid in equal quarterly payments over a period of 6 years. If the interest rate is 12.5%

A loan of $245,000 is to be repaid in equal quarterly payments

A loan of $245,000 is to be repaid in equal quarterly payments over a period of 6 years. If the interest rate is 12.5% compounded quarterly, what is the amount of unpaid principal at the beginning of the fifth year? a. $102,383 b. $53,721 c. $101,474 d. $54,338 o. 1117,297

Step by Step Solution

★★★★★

3.47 Rating (163 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Given loan PV 245000 6years 125 Quater interest rate ... 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

Students Have Also Explored These Related Mathematics Questions!

A trough is 10 ft long and its ends have the shape of isosceles triangles that are 3 ft across at the top and have a height of 1 ft. If the trough is being filled with water at a rate of 12 ft3/min...

A weather glass, as shown in FIGURE 15-45, is used to give an indication of a change in the weather. Does the water level in the neck of the weather glass move up or move down when a low-pressure...

A solid part shown in Figure P11-28 is made to locate parts into proper position. The material is AISI 1005 steel with E = 200 GPa and v = 0.29. The front faces are fixed, and a pressure P of 100 MPa...

Yang and Gupta both have $100,000. They decide to invest differently. Yang plans to invest in an S&P500 passive fund, with an expected return of 8%. Gupta plans to invest in treasury securities, with...

6 A loan of $245,000 is to be repaid in equal quarterly payments over a period of 6 years. If the interest rate is 12.5% compounded quarterly, what is the amount of unpaid principal at the beginning...

A loan of $245,000 is to be repaid in equal quarterly payments over a period of 6 years. If the interest rate is 13.5% compounded quarterly, what is the amount of unpaid principal at the beginning of...

A loan of $245,000 is to be repaid in equal quarterly payments over a period of 6 years. If the interest rate is 15.5% compounded quarterly, what is the amount of unpaid principal at the beginning of...

1)A quality-control exercise was carried out by an electrical company for estimating the percentage of defective LED light bulbs in a large shipment of one-thousand boxes with one-hundred bulbs in...

CHAPTER 9 ? On Page 4 of your UBPR, locate the data for the balance sheet. You will use this data to calculate k (leverage) using ?Total Assets? (not ?Total Earning Assets?). Assume the...

Analyze the truth of this statement, assuming you are 20 years old: "For every five years that you wait to start accumulating money for your retirement, it takes twice as much savings per year to...

A 150-mm-long bronze tube, closed at its ends, is 80 mm in diameter and has a wall thickness of 3 mm. It fits without clearance in an 80-mm hole in a rigid block. The tube is then subjected to an...

According to IBM, which of the following are limitations of Process Mining? Complexity in large organizations Tntegration hurdles Potential resistance to change Data quality and avaliablity Concept...

In Figure, light is incident at angle 1 = 40.1? on a boundary between two transparent materials. Some of the light travels down through the next three layers of transparent materials while some of it...

In Figure, a beam of light, with intensity 43 W/m2 and polarization parallel to a y axis, is sent into a system of two polarizing sheets with polarizing directions at angles of ?1 = 70? and ?2 = 90?...

Two loads are suspended as shown from cable ABCD. Knowing that dC = 0.75 m, determine (a) The distance dB, (b) The components of the reaction at A, (c) The maximum tension in the cable. de 2.25 kN 3...

An oil pipeline is supported at 6-m intervals by vertical hangers attached to the cable shown. Due to the combined weight of the pipe and its contents, the tension in each hanger is 4kN. Knowing that...

The 4-oz pin B slides along the slot in the rotating arm OC and along the slot DE which is cut in a fixed horizontal plate. Neglecting friction and knowing that arm OC rotates at a constant rate te...

How many centimeters are in 33 inches? (1 in = 2.54 cm) cm

This company buys brought a property, builds on it and turns around and sells it. I need to know if I posted the Buyer Final Closing Statement correctly in QuickBooks. I want to verify mainly about...

QUESTION 2 (49 marks) (59 minutes) 4. Alps Ltd operates a chocolate factory and decided to acquire 72 000 of the 90 000 ordinary shares in Himalayas Ltd. Himalayas Ltd is involved in cocoa farming...

QUESTION 1 Nam Auto Ltd (Nam Auto, a Namibia stock exchange registered company has been operating in the automotive industry since the year 2000 and the company has been trading quite well and...

i have done question1, i need answer for question 2-3 Question 6 Worksheets and Financial Statements Phil owns Mickelson Enterprises which sells sunglasses. The Balance Sheet as at 30 June 2020 is...

Need help with finance calculations formulars / results using the attached case study for the following please : 1 - Cost of Debt 2 - Cost of Capital to evaluate feasability 3 - Change in Capital 4 -...

INFORMATION PREMIER LIMITED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2021 R Sales 7 200 000 Cost of sales (5 040 000) Gross profit 2 160 000 Operating expenses (including...