Which of the following do/does not require a set amortization schedule? Revolving credit facility Term loan...

Question

Question

Which of the following do/does not require a set amortization schedule? Revolving credit facility Term loan...

Which of the following do/does not require a set amortization schedule?

		Revolving credit facility
		Term loan A
		Term loan B
		Senior notes

business finance

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Revolving credit facility

A revolving credit loan is not a term loan since it provides the borrower the flexibility to withdraw funds and repay multiple times. Hence it does not follow a fixed amortization schedule.

Term loanA,Band senior notes are term loans and hence they follow a fixed amortization schedule.

Add a comment

Answer 2

Similar Homework Help Questions

Amortization schedule a. set up an amortization schedule for a $23,000 loan to be repaid in...

Amortization schedule a. set up an amortization schedule for a $23,000 loan to be repaid in equal installments at the end of each of the next 3 years. The interest rate is 8% compounded annually. Round all answers to the nearest cent Beginning Remaining ar Balance ay men Balance b. What percentage of the payment represents interest and what percentage represents principal for each of the 3 years? Round all answers to two decimal places % interest % Principal Year...
Create a monthly loan amortization schedule for the following loan: The amount to borrow is: 15,000.00...

Create a monthly loan amortization schedule for the following loan: The amount to borrow is: 15,000.00 Term of the loan: 3 years Annual interest rate: 6% Loan payments are made monthly.
Construct a Loan Amortization Schedule Question Consider the following monthly amortization schedule: Payment # Pay...

Construct a Loan Amortization Schedule Question Consider the following monthly amortization schedule: Payment # Payment Debt Payment Balance Interest 1 1, 167.34 259,873.20 540.54 626.80 2 1, 167.34 539.24 628.10 259, 245.10 3 1, 167.34 With the exception of column one, all amounts are in dollars. Calculate the annual interest rate on this loan. Give your answer to the nearest hundredth percent. Do not include the % sign in your response. Provide your answer below Construct a Loan Amortization Schedule...

Problem 5-34 Amortization schedule Set up an amortization schedule for a $42,000 loan to be repaid...

Problem 5-34 Amortization schedule Set up an amortization schedule for a $42,000 loan to be repaid in equal installments at the end of each of the next 3 years. The interest rate is 6% compounded annually. Round all answers to the nearest cent. Beginning Remaining Year Balance Payment Balance 1 $ $ $ 2 $ $ $ 3 $ $ $ What percentage of the payment represents interest and what percentage represents principal for each of the 3 years? Round...
Create an amortization schedule using the following assumptions: Loan term: 25 year - fixed Purchase price:...

Create an amortization schedule using the following assumptions: Loan term: 25 year - fixed Purchase price: $130,000 Down payment: 5% Interest rate: 12% $130,000 $123,500 $114,000 QUESTION 10 Using the assumptions in question #9, what is the loan balance in year 2? $122,151 $122,547 $123,500 none of the above
Why would recording revolving line of credit loan as a long-term liability from a business standpoint...

Why would recording revolving line of credit loan as a long-term liability from a business standpoint of view make sense apart from compliance with promulgated standards (GAAP and IFRS standards)?

Create an amortization schedule/sinking fund schedule for the following: a. A $500,000 loan with level payments made at...

Create an amortization schedule/sinking fund schedule for the following: a. A $500,000 loan with level payments made at the end of each year for 30-years. Assume an annual effective interest rate on the loan of 4% and that the loan is repaid with the amortization method. In excel with equations listed please.
Prepare the first row of a loan amortization schedule based on the following information. The loan...

Prepare the first row of a loan amortization schedule based on the following information. The loan amount is for $31,060 with an annual interest rate of 11.00%. The loan will be repaid over 28 years with monthly payments. a) What is the Loan Payment? b) What portion of this payment is Interest? c) What portion of this payment is Principal? d) What is the Loan balance after first monthly payment?
Amortization schedules a. Set up an amortization schedule for a $250,000 mortgage to be repaid in...

Amortization schedules a. Set up an amortization schedule for a $250,000 mortgage to be repaid in equal monthly installments at the end of each month for the next 15 years. The mortgage rate is an APR of 5%. b. How large must each monthly payment be if the loan is for $500,000? Assume that the interest rate remains at 5% and that the loan is paid off over 15 years. c. How large must each monthly payment be if the...

Amortization schedules a. Set up an amortization schedule for a $250,000 mortgage to be repaid in...

Amortization schedules a. Set up an amortization schedule for a $250,000 mortgage to be repaid in equal monthly installments at the end of each month for the next 15 years. The mortgage rate is an APR of 4.5%. b. How large must each monthly payment be if the loan is for $500,000? Assume that the interest rate remains at 4.5% and that the loan is paid off over 15 years. c. How large must each monthly payment be if the...

Which of the following do/does not require a set amortization schedule? Revolving credit facility Term loan...

Homework Answers

Add Answer to:
Which of the following do/does not require a set amortization schedule? Revolving credit facility Term loan...

Post as a guest

Earn Coins

Amortization schedule a. set up an amortization schedule for a $23,000 loan to be repaid in...

Create a monthly loan amortization schedule for the following loan: The amount to borrow is: 15,000.00...

Construct a Loan Amortization Schedule Question Consider the following monthly amortization schedule: Payment # Pay...

Problem 5-34 Amortization schedule Set up an amortization schedule for a $42,000 loan to be repaid...

Create an amortization schedule using the following assumptions: Loan term: 25 year - fixed Purchase price:...

Why would recording revolving line of credit loan as a long-term liability from a business standpoint...

Create an amortization schedule/sinking fund schedule for the following: a. A $500,000 loan with level payments made at...

Prepare the first row of a loan amortization schedule based on the following information. The loan...

Amortization schedules a. Set up an amortization schedule for a $250,000 mortgage to be repaid in...

Amortization schedules a. Set up an amortization schedule for a $250,000 mortgage to be repaid in...

Which of the following do/does not require a set amortization schedule? Revolving credit facility Term loan...

Homework Answers

Add Answer to: Which of the following do/does not require a set amortization schedule? Revolving credit facility Term loan...

Post as a guest

Earn Coins

Add Answer to:
Which of the following do/does not require a set amortization schedule? Revolving credit facility Term loan...