a. You borrowed $13,000 from a friend and promised to repay the loan in ten equal annual
Question:
a. You borrowed $13,000 from a friend and promised to repay the loan in ten equal annual installments. Installments begin at the end of the first year. What are the annual payments required to pay back your friend, who would like to earn 2% annual interest, compounded annually? (Round your final answer to the nearest cent, $X.XX.)
The annual payments are $ | | . |
b. Towne Corporation has an outstanding debt of $58,741. Assume no interest will accrue on the debt. It has $40,000 to invest in a fund earning 3% interest, compounded annually. How many years will it take Towne to earn enough money to pay back the debt? (Round your final answer to the nearest whole number, X.)
It will take Towne | | years to earn enough money to pay back the debt. |
c. Topper & Co. purchases jewelry from a supplier for $50,412.87. Topper uses a note to pay for the jewelry that requires the company to make six annual payments of $9,000. Payments begin at the end of the first year. What interest rate is used in this agreement? (Round your final answer to the nearest whole percent, X%.)
The interest rate used in this agreement is | | %. |
d. Your parents wish to accumulate $240,000 to purchase a summerhouse on the Jersey Shore in 9 years. They would like to make deposits into a fund earning 4% interest, compounded semiannually. Deposits begin at the end of the first semiannual period. Determine the semiannual deposits required to purchase the home. (Round your final answer to the nearest cent, $X.XX.)
Your parents must deposit $ | | at the end of each semiannual period. |
Accounting Principles
ISBN: 978-0470534793
10th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso