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mestny [16]
2 years ago
11

You borrow money on a self liquidating installment loan (equal payments at the end of each year, each payment is part principal

part interest)
Loan amount: $776,000
Interest Rate: 11.6%
Life: 41 years
Date of Loan: January 1, 2021

Required:
1. What is the annual payment (round to the nearest $)?
2. What are the total interest payments (round to the nearest $)?
3. After 23 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)?
4. After 23 payments have been made, what percentage of the total principal has been paid (round to the nearest percentage point)?

Redo the problem if the interest rate is 1%
Required:
5. What is the annual payment (round to the nearest $)?
6. What are the total interest payments (round to the nearest $)?
7. After 23 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)?
8. After 23 payments have been made, what percentage of the total principal has been paid (round to the nearest percentage point)?
Business
1 answer:
steposvetlana [31]2 years ago
3 0

The annual payment on the loan is $108943.

<h3>How to calculate the loan?</h3>

Principal = $776000

Rate = 11.6%

Time = 41 years

The total interest will be:

= PRT/100

= (776000 × 11.6 × 41)/100

= $3690656

The total amount to be paid will be:

= $776000 + $3690656

= $4466656

The annual payment will be:

= Total amount / Number of years

= $4466656 / 41

= $108943

After 23 years, the interest will be:

= 776000 × 11.6 × 23)/100

= $2070368

The percentage of the total interest will be:

= $2070368/$3690656

= 56.1%

When 23 payments have been made, the percentage of the total amount will be:

= (776000 + 2070368) / 4466656

= 2846368/4466656

= 63.72%

Learn more about loan on:

brainly.com/question/26011426

#SPJ1

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Answer:

The correct answer is letter "A": recovery.

Explanation:

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8 0
4 years ago
The transactions of Spade Company appear below.
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Answer:

Please see the required journals below.

Explanation:

a. Owner's investment in business

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Credit Cash $544

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Debit Office Equipment $10,369

Credit Accounts Payable $10,369

d. Receipt of fees for services provided to a customer

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Credit Cash $10,369

f. Fees for services provided to a customer

Debit Accounts Receivable $3,975

Credit Fees Earned $3,975

g. Payment for monthly rent

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h. Collection of partial accounts receivable in (f) above

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5 0
3 years ago
1. Identify various production processes and
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Answer:

D

Explanation:

8 0
4 years ago
Synovec Co. is growing quickly. Dividends are expected to grow at a rate of 20 percent for the next three years, with the growth
user100 [1]

Answer:

The  current share price is $71.05

Explanation:

P3 = D3(1 + g)/(R – g)

    = D0[(1 + g1)^3](1 + g2)/(R – g)

    = [$1.45*(1.20)^3(1.08)]/(0.11 – 0.08)  

    = $90.20

The price of the stock today is the PV of the first three dividends, plus the PV of the Year 3 stock price given by:  

P0 = $1.45(1.20)/1.11 + $1.45[(1.20)^2]/1.112 + $1.45[(1.20)^3]/1.113 + $90.20/1.113

    = 1.568 + 1.695 + 1.832 + 65.958

    = $71.05

Therefore, The  current share price is $71.05

7 0
3 years ago
Elmer’s utility function is U(x, y) = min{x, y2}. If the price of x is $25 and the price of y is $15 and if Elmer chooses to con
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Answer:

the income is $1,330

Explanation:

The computation of the income is shown below;

Given that

U(x, y) = min{x, y2}

Price of x is $25

ANd, the prcie of Y is $15

So,

25X + 15Y = M

if Y = 7,

So,  

At eqm, X = Y^​​​​​​2 = 49

Then ,

M = 25 × 49 + 15 × 7

= 1225 + 105

= 1330

Hence, the income is $1,330

The same should be relevant and considered too

6 0
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