Company defaulted on a $160,000 loan that was due on December 31, 2024. The bank has...
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Company defaulted on a $160,000 loan that was due on December 31, 2024. The bank has agreed to allow Lowlife to repay the $160,000 by making a series of equal annual payments beginning on December 31, 2025. Required: 1. Calculate the required annual payment if the bank's interest rate is 10% and four payments are to be made. 2. Calculate the required annual payment if the bank's interest rate is 8% and five payments are to be made. 3. If the bank's interest rate is 10%, how many annual payments of $27,783 would be required to repay the debt? 4. If three payments of $59,858 are to be made, what interest rate is the bank charging Lowlife? Note: For all requirements, Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Calculate the required annual payment if the bank's interest rate is 10% and four payments are to be made. Note: Round your final answers to nearest whole dollar amount. Time values are based on: Table, Excel, or calculator function Present Value: n = = Annual Installment: < Required 1 Required 2 > Company defaulted on a $160,000 loan that was due on December 31, 2024. The bank has agreed to allow Lowlife to repay the $160,000 by making a series of equal annual payments beginning on December 31, 2025. Required: 1. Calculate the required annual payment if the bank's interest rate is 10% and four payments are to be made. 2. Calculate the required annual payment if the bank's interest rate is 8% and five payments are to be made. 3. If the bank's interest rate is 10%, how many annual payments of $27,783 would be required to repay the debt? 4. If three payments of $59,858 are to be made, what interest rate is the bank charging Lowlife? Note: For all requirements, Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Calculate the required annual payment if the bank's interest rate is 10% and four payments are to be made. Note: Round your final answers to nearest whole dollar amount. Time values are based on: Table, Excel, or calculator function Present Value: n = = Annual Installment: < Required 1 Required 2 >
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Related Book For
Intermediate Accounting
ISBN: 9781260481952
10th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
Posted Date:
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