ZuoTi.Pro
Question

Payments. Cooley Landscaping Company needs to borrow $23,000 for a new front-end dirt loader. The bank is willing to loan the

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Present value of annuity=Annuity[1-(1+interest rate)^-time period]/rate

23000=Annuity[1-(1.1)^-5]/0.1

23000=Annuity*3.79078677

Annuity=23000/3.79078677

=$6067.34(Approx).

0 0
Add a comment
Know the answer?
Add Answer to:
Payments. Cooley Landscaping Company needs to borrow $23,000 for a new front-end dirt loader. The bank...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Cooley Landscaping Company needs to borrow $23,000 for a new​ front-end dirt loader. The bank is...

    Cooley Landscaping Company needs to borrow $23,000 for a new​ front-end dirt loader. The bank is willing to loan the funds at 7​% interest with annual payments at the end of the year for the next 7 years. What is the annual payment on this loan for Cooley​ Landscaping? A) What is the annual payment on this loan for Cooley​ Landscaping?

  • Cooley Landscaping needs to borrow 35,000 for a new​ front-end dirt loader. The bank is willing...

    Cooley Landscaping needs to borrow 35,000 for a new​ front-end dirt loader. The bank is willing to loan the money at 7.5​% interest for the next 7 years with annual,semiannual​,quarterly​,or monthly payments. What are the different payments that Cooley Landscaping could choose for these different payment​ plans?

  • Present value with periodic rates. Cooley Landscaping needs to borrow $26,000 for a new front-end dirt...

    Present value with periodic rates. Cooley Landscaping needs to borrow $26,000 for a new front-end dirt loader. The bank is willing to loan the money at 8.5% interest for the next 9 years with annual, semiannual, quarterly, or monthly payments. What are the different payments that Cooley Landscaping could choose for these different payment plans? What is Cooley's payment for the loan at 8.5% interest for the next 9 years with annual payments? $ (Round to the nearest cent.)

  • Question 4 Penn Inc. needs to borrow $250,000 for the next 6 months. The company has a line of credit with a bank that a...

    Question 4 Penn Inc. needs to borrow $250,000 for the next 6 months. The company has a line of credit with a bank that allows the company to borrow funds with an 9% interest rate subject to a 20% of loan compensating balance. Currently, Penn Inc. has no funds on deposit with the bank and will need the loan to cover the compensating balance as well as their other financing needs. What will be the annual percentage rate, or APR,...

  • A company that needs to borrow $1000000 is offered different terms from 2 banks. Bank A...

    A company that needs to borrow $1000000 is offered different terms from 2 banks. Bank A expects the load to be amortized with annual payments at an annual interest rate of i=.08. Bank B requires annual interest payments at a rate of i=.06 and annual deposits into a sinking fund that earns interest at i=.02. In both cases the loan is to be paid off in 10 years. Which bank is offering the better deal? Calculate the total annual cost...

  • Pern Inc. needs to borrow $250,000 for the next 6 months.

    Pern Inc. needs to borrow $250,000 for the next 6 months. The company has a line of credit with a bank that allows the company to borrow funds with an compensating balance. Currently, Penn Inc. has no funds on deposit with the bank and will need the loan to cover the compensating balance as well as their other financing needs. What will be the interest rate subject to a zooloan annual percentage rate, or APR for this financing interest is...

  • Find the amortization table for a $23,000 loan amortized over 3 years with semiannual payments if...

    Find the amortization table for a $23,000 loan amortized over 3 years with semiannual payments if the interest rate is 5.3% per year compounded semiannually. (Round your answers to the nearest cent.) End of Payment Period Made Payment Toward Interest Payment Toward Principal Outstanding Principle 23000

  • You borrow $100,000 on a mortgage loan. The loan requires monthly payments for the next 30...

    You borrow $100,000 on a mortgage loan. The loan requires monthly payments for the next 30 years. Your annual loan rate is 4.25%. The loan is fully amortizing. What is your monthly payment? Round your answer to 2 decimal places. 2. You borrow $100,000 on a mortgage loan. The loan requires monthly payments for the next 30 years. Your annual loan rate is 4.25%. The loan is fully amortizing. What is your Month 1 interest payment? Round your answer to...

  • (Annuity payments) To buy a new house, you must borrow $150,000. To do this, you take...

    (Annuity payments) To buy a new house, you must borrow $150,000. To do this, you take out a $150,000, 20 year, 12 percent mortgage. Your mortgage payments, which are made at the end of each year (one payment each year), include both principal and 12 percent interest on the declining balance. How large will your annual payments be? The amount of your annual payment will be $ (Round to the nearest cent.)

  • 2 You borrow money on a self liquidating installemnt loan (equal payments at the end of...

    2 You borrow money on a self liquidating installemnt loan (equal payments at the end of each year, each payment is part principal part interest) 3 Loan 4 Interest Rate 5 Life (years) 6 Date of Loan $292,000 15.30% 42 January 1, 2018 9 Use the installment method not straight line 10 Do NOT round any interrmediate numbers 11 Do NOT turn this into a monthly problem. 12 13 a) What is the annual payment? 14 b What are the...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT