Metro Construction received $60,000 in vendor financing at 10.5% compounded semiannually for the purchase of a loader.

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Metro Construction received $60,000 in vendor financing at 10.5% compounded semiannually for the purchase of a loader. Semiannual payments of $10000 will pay off the debt in 4 years, including $14,000.83 in Interest. Suppose that the loan permits an additional prepayment of principal on any scheduled payment date. Prepare an amonization schedule that reflects a prepayment of $5,000 with the third scheduled payment. How much interest is saved as a result of the prepayment? ( Round your answers to the nearest cent.)

Posted Date: Nov 14, 2021 12:38 PM

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Metro Construction received $60,000 in vendor financing at 10.5% compounded semiannually for the purchase of a loader.

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105 Given PV S60000 i A balloon payment of 5000 is paid along with Payment 3 525 PMT 10000 Pa... View the full answer

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