A company purchased equipment and signed a 3-year installment loan at 6% annual interest. The annual...
A company purchased equipment and signed a 3-year installment loan at 6% annual interest. The annual payments equal $9,800. The present value of an annuity factor for 3 years at 6% is 2.6730. The present value of a single sum factor for 3 years at 6% is .8396. The present value of the loan is:
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$29,400.
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$8,228.
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$9,800.
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$11,672.
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$26,195.
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A company purchased equipment and signed a 3-year installment
loan at 6% annual interest. The annual...
A company purchased equipment and signed a 4-year installment loan at 6% annual interest. The annual...
A company purchased equipment and signed a 4-year installment loan at 6% annual interest. The annual payments equal $11,200. The present value for an annuity (series of payments) at 6% for 4 years is 3.4651. The present value of 1 (single sum) for 4 years at 6% is 7921. The present value of the loan is: Multiple Choice $11,200. $8,872. $14,140 $44.800 $38,809
A company purchased equipment and signed a 3-year installment loan at 8% annual interest. The annual...
A company purchased equipment and signed a 3-year installment loan at 8% annual interest. The annual payments equal $10,300. The present value of an annuity factor for 3 years at 8% is 2.5771. The present value of a single sum factor for 3 years at 8% is 7938. The present value of the loan is Multiple Choice o ,76. o О $30,900. o O stoзoo. o O s26. Бала o О 312,976,
A company borrowed $41,900 cash from the bank and signed a 4-year note at 9% annual...
A company borrowed $41,900 cash from the bank and signed a 4-year note at 9% annual interest. The present value of an annuity factor for 4 years at 9% is 3.2397. The present value of a single sum factor for 4 years at 9% is .7084. The annual annuity payments equal: Multiple Choice $29,681.96. $12,933.30. $41,900.00. $59,147.37. $135,743.43.
13. On October 1, a $30,000, 6%, 3-year installment note payable is issued by a company....
13. On October 1, a $30,000, 6%, 3-year installment note payable is issued by a company. The note requires equal payments of principal plus accrued interest be paid at the end of each year on September 30. The present value of an annuity factor for 3 years at 6% is 2.6730. The payment will be: A. $10,000.00. B. $11,223.34. C. $10,800.00. D. $10,400.00. E. $1,223.34.
On August 1, a $60,000, 7%, 3-year installment note payable is issued by a company. The...
On August 1, a $60,000, 7%, 3-year installment note payable is issued by a company. The note requires equal payments of principal plus accrued interest be paid each year on July 31. The present value of an annuity factor for 3 years at 7% is 2.6243. The present value of a single sum factor for 3 years at 7% is 0.8163. The payment each July 31 will be: Multiple Choice 1. $20,000.00. 2. $22,863.24. 3. $20,800.00. 4. $20,400.00. 5. $2,863.10.
A company issues 9%, 7-year bonds with a par value of $260,000 on January 1 at...
A company issues 9%, 7-year bonds with a par value of $260,000 on January 1 at a price of $273,732, when the market rate of interest was 8%. The bonds pay interest semiannually. The amount of each semiannual interest payment is: A) $23,400. B) $11,700. C) $0. D) $20,800. E)$10,400. A company must repay the bank a single payment of $26,000 cash in 6 years for a loan it entered into. The loan is at 7% interest compounded annually. The...
Installment Loan Schedule Assume you are to borrow money, the loan amount, at an annual interest...
Installment Loan Schedule Assume you are to borrow money, the loan amount, at an annual interest rate to be paid in equal installments each period Loan Amount $ 25,000 9.90% Annual Interest Rate Periods per year 12 Years to payback See Table B.3 in book. 47.17454194 FACTOR = [1 -(1 / ((1R)An)]/ R Factor $ Equal Payments 529.95 let R = period interest rate number of periods to payback loan let n Number of periods: 60 Reduction in Principal Interest...
Little Company borrowed $48,000 from Sockets on January 1, 2018, and signed a three-year, 6% installment...
Little Company borrowed $48,000 from Sockets on January 1, 2018, and signed a three-year, 6% installment note to be paid in three equal payments at the end of each year. The present value of an ordinary annuity of $1 for 3 periods at 6% is 2.67301. Required: 1. Prepare the journal entry on January 1, 2018, for Sockets’ lending the funds. 2. Calculate the amount of one installment payment. 3. Prepare an amortization schedule for the three-year term of the...
Stellar Corporation purchased equipment and in exchange signed a two-year promissory note. The note requires Stellar...
Stellar Corporation purchased equipment and in exchange signed a two-year promissory note. The note requires Stellar to make a single payment of $100,000 in two years. Stellar has other promissory notes that charge interest at the annual rate of 5 percent. Part of Legendary Corporation purchased equipment and in exchange signed a three-year promissory note. The note requires Legendary to make equal annual payments of $10,000 at the end of each of the next three years. Legendary has other promissory...
A company issues 7% bonds with a par value of $140,000 at par on January 1...
A company issues 7% bonds with a par value of $140,000 at par on January 1 The market rate on the date of issuance was 6%. The bonds pay interest semiannually on January 1 and July 1. The cash paid on July 1 to the bond holder(s) is: ο ο $8, 400. ο $4900. ο 4,200. ο A company purchased equipment and signed a 5-year installment loan at 10% annual interest. The annual payments equal $11,600. The present value of...
A company purchased equipment and signed a 4-year installment loan at 6% annual interest. The annual payments equal $11,200. The present value for an annuity (series of payments) at 6% for 4 years is 3.4651. The present value of 1 (single sum) for 4 years at 6% is 7921. The present value of the loan is: Multiple Choice $11,200. $8,872. $14,140 $44.800 $38,809
A company purchased equipment and signed a 3-year installment loan at 8% annual interest. The annual payments equal $10,300. The present value of an annuity factor for 3 years at 8% is 2.5771. The present value of a single sum factor for 3 years at 8% is 7938. The present value of the loan is Multiple Choice o ,76. o О $30,900. o O stoзoo. o O s26. Бала o О 312,976,
Installment Loan Schedule Assume you are to borrow money, the loan amount, at an annual interest rate to be paid in equal installments each period Loan Amount $ 25,000 9.90% Annual Interest Rate Periods per year 12 Years to payback See Table B.3 in book. 47.17454194 FACTOR = [1 -(1 / ((1R)An)]/ R Factor $ Equal Payments 529.95 let R = period interest rate number of periods to payback loan let n Number of periods: 60 Reduction in Principal Interest...
Stellar Corporation purchased equipment and in exchange signed a two-year promissory note. The note requires Stellar to make a single payment of $100,000 in two years. Stellar has other promissory notes that charge interest at the annual rate of 5 percent. Part of Legendary Corporation purchased equipment and in exchange signed a three-year promissory note. The note requires Legendary to make equal annual payments of $10,000 at the end of each of the next three years. Legendary has other promissory...
A company issues 7% bonds with a par value of $140,000 at par on January 1 The market rate on the date of issuance was 6%. The bonds pay interest semiannually on January 1 and July 1. The cash paid on July 1 to the bond holder(s) is: ο ο $8, 400. ο $4900. ο 4,200. ο A company purchased equipment and signed a 5-year installment loan at 10% annual interest. The annual payments equal $11,600. The present value of...
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