Sandy Kupchack just graduated from State University with a bachelor’s degree in history. During her four years at the university
, Sandy accumulated $10,000 in student loans. She asks for your help in determining the amount of the quarterly loan payment. She tells you that the loan must be paid back in five years and that the annual interest rate is 8%. Payments begin in three months.
Required:
Determine Sandy's quarterly loan payment.
Required:
Determine Sandy's quarterly loan payment.
1 answer:
Answer: $611.57 or $612 rounded to nearest dollar.
Explanation:
She would have to make a constant payment per quarter which makes it an annuity.
The $10,000 is the present value of the annuity.
The quarters remaining are = 5 years * 4 = 20 quarters
Quarterly interest = 8%/4 = 2%
10,000 = Annuity * Present Value of Annuity factor, 20 periods, 2%
10,000 = Annuity * 16.3514
Annuity = 10,000/16.3514
= $611.57
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Answer:
The correct answer to the following question will be "$5427".
Explanation:
The given expenditures are:
Temporary director's as well as organisational meetings expenditures = $8000
Fee payable to either the incorporation province = $2000
Incident accountants for organisation = $3500
Legal resources and by-laws for writing the company charter = $4300
So that total qualifying expenses will be :
⇒ $17,800
Now,
Deduction regarding section 248 election:
Immediate expensing = $5000
Amortization =
On putting the values in the above formula, we get
⇒ =
⇒ = $
Hence the deduction on election regarding section 248 = $5,427