Due to new safety regulations, Kate's Kitchen need to replace one of its production line as...
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Due to new safety regulations, Kate's Kitchen need to replace one of its production line as soon as possible. They estimate they will need $150,000 now and have arranged a loan at 4.2% APR, compounded monthly, over four years. • What is the monthly payment on the loan? (4 points) With new production line installed, Kate's Kitchen double its monthly profit. Kaye's Kitchen adjust its monthly payment to $5,000. Using the following amortization table and calculate the Closing Balance for the second month and the Principal Repaid for the fourth month. Month 1 2 3 4 5 Opening Balance $ 150,000 Interest Payment $5,000 $5,000 $5,000 $5,000 $5,000 Principal Repaid ??? Closing Balance ??? • What is the Closing Balance for the second month? Please write down the amount directly. (1 point) • What is the Principal Repaid for the fourth month? Please write down the amount directly. (1 point) Due to new safety regulations, Kate's Kitchen need to replace one of its production line as soon as possible. They estimate they will need $150,000 now and have arranged a loan at 4.2% APR, compounded monthly, over four years. • What is the monthly payment on the loan? (4 points) With new production line installed, Kate's Kitchen double its monthly profit. Kaye's Kitchen adjust its monthly payment to $5,000. Using the following amortization table and calculate the Closing Balance for the second month and the Principal Repaid for the fourth month. Month 1 2 3 4 5 Opening Balance $ 150,000 Interest Payment $5,000 $5,000 $5,000 $5,000 $5,000 Principal Repaid ??? Closing Balance ??? • What is the Closing Balance for the second month? Please write down the amount directly. (1 point) • What is the Principal Repaid for the fourth month? Please write down the amount directly. (1 point)
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Answer rating: 100% (QA)
To calculate the monthly payment on the loan we can use the formula for the present value of an annu... View the full answer
Related Book For
Management and Cost Accounting
ISBN: 978-1405888202
4th edition
Authors: Alnoor Bhimani, Charles T. Horngren, Srikant M. Datar, George Foster
Posted Date:
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