Question: You borrowed $2,500 from the bank at a rate of 6% compounded quarterly. You will repay the loan back over 3 years with payments

You borrowed $2,500 from the bank at a rate of 6% compounded

You borrowed $2,500 from the bank at a rate of 6% compounded quarterly. You will repay the loan back over 3 years with payments every three months. Show the original principal balance and complete the first payment of the amortization schedule below. Round numbers to 2 places after the decimal. Hint: If using the amortization table on your calculator, re-enter the rounded PMT amount. Complete schedule with only positive numbers. 1/Y Pmt # 0 1 P/Y C/Y Payment (enter as a positive number) ************ N Interest Portion ************ PV PMT Principal Portion ************ FV Principal Balance

Step by Step Solution

★★★★★

3.41 Rating (148 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

To create an amortization schedule for the loan we can use an amortization calculator or formula Ill ... 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 Accounting Questions!

For each problem, show your work steps. A correct answer with no work shown gets half credit (which means you fail the assignment). An incorrect answer with no work receives 0 credit. With time value...

You have applied for a job with a local bank. As part of its evaluation process, you must take an examination on time value of money analysis covering the following questions: a. Draw time lines for...

Assume that you have applied for a job with a bank. As part of the banks evaluation process, you have been asked to take an assessment that covers several financial analysis techniques. For each...

You borrowed $2,500 from the bank at a rate of 6% compounded quarterly. You will repay the loan back over 3 years with payments every three months. Show the original principal balance and complete...

The current stock price for a company is $39 per share, and there are 8 million shares outstanding. The beta for this firms stock is 1.3, the risk-free rate is 4.5, and the expected market risk...

Noah is investing $850 at the end of each month into a savings bond with his local investment firm. The firm has promised Noah a nominal interest rate of 4.65% compounded quarterly. Given these terms...

P L E A E A N S W E R T H E F O L LO W I N G M AT H Q U E S T I O N S . QUESTION 1 1. Find the simple interest on a $400 investment made for 5 years at an interest rate of 7%/year. What is the...

1. Shirley wants to go on a trip to Hawaii. She budgets that she can save $108 at the end of every month, and interest in her account is 8% compounded biweekly. By looking at prices, she knows that...

1. What amount was invested 35 years ago at 7% compounded semiannually if the value of the investment has now grown to $1,000,000? Round to the nearest dollar. 2. Murphy's annual income has increased...

1 . What is the MOST nearly effective annual interest rate on a loan if the nominal interest rate is 9 % per year compounded quarterly? A . 9 . 5 2 % B . 9 . 8 4 % C . 9 . 6 8 % D . 9 . 3 1 % 2 ....

The question is from the story Leslie Marmon Silko and Yellow Woman 3. Many Yellow Woman tales highlight her alienation from her people (Allen, The Sacred Hoop, 227). How does the possibility of...

On 1st July 2005 T. Olomola a trader had his Beginning inventory valued at NGN1300 and his Ending inventory valued at NGN1700 on 30th June 2006. During the year he turnover his stock four times and...

How are congressional committee chairs chosen ? Group of answer choices Political favors By secret vote By seniority By who asks first

Feng Company purchased a machine for $180,000 on September 1, 2013. It is estimated that the machine will have a 10-year life and a salvage value of $18,000. Its working hours and production in units...

Exploratory Company is an oil and gas exploration firm. During 2013, Exploratory engaged in 86 different exploratory projects, only 20 of which were successful. The total cost of this exploration...

The current Senate consists of 83 males and 17 females. Forty different senators are randomly selected without replacement, and the gender of each selected senator is recorded. Determine whether the...

Jerry and Ernie are comparing their tax situations. Both are paying all of the nursing home expenses of their parents. Jerry can include the expenses in computing his medical expense deduction, but...

Welnor Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operations follow: Sales are budgeted at $320,000 for November, $340,000 for...

code class="asciimath">a spherical container has surface area of about 5,538.96 square centimeters. WHat is the volume of the container? Use 3.14 for pi, and round to the nearest hundredth.

A companys fixed operating costs are $430,000, its variable costs are $2.95 per unit, and the products sales price is $4.50. What is the companys break-even point; that is, at what unit sales volume...

Simon recently received a credit card with an 18% nominal interest rate. With the card, he purchased an Apple iPhone 7 for $372.71. The minimum payment on the card is only $10 per month. a. If Simon...

Rini Airlines is considering two alternative planes. Plane A has an expected life of 5 years, will cost $95 million, and will produce after-tax cash flows of $35 million per year. Plane B has a life...

The correlation matrix obtained for the variables SBP (Y), AGE (X1), SMK (X2), and QUET (X3), using the data from Problem 2 in Chapter 5, is given by a. Based on this matrix, which of the independent...

The accompanying SAS computer output relates to the house price data of Problem 10 in Chapter 8. Use this output and, if necessary, the output associated with Problem 9 in Chapter 9 to answer the...

Use the results from Problem 4 in Chapter 8, as well as the computer output given here, to answer the following questions about the data from that problem. a. Conduct the overall regression F test...