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dlinn [17]
3 years ago
14

Grant Corporation is looking to purchase a building costing $1,300,000 by paying $500,000 cash on the purchase date, and agreein

g to make payments every quarter for the next five years. The first payment is due three months after the purchase date. Grant's borrowing rate for this transaction is 8% (this is an annual interest rate). Required: Calculate how much each of the payments should be.
Business
1 answer:
Alexandra [31]3 years ago
5 0

Answer:

Grant Corporation

The payments should be $42,133.16 every quarter.

Explanation:

a) Data and Calculations:

Building cost = $1,300,000

Down payment = $500,000

Interest rate = 8% per year

Payment terms = quarter for 5 years

From an online calculator, the payments should be:

N (# of periods)  20

I/Y (Interest per year)  2

PV (Present Value)  800000

FV (Future Value)  0

Results

PMT = $42,133.16

Sum of all periodic payments $842,663.23

Total Interest $42,663.23

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________ capital is the economic or productive potential of employee knowledge and actions.
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Over the years, O'Brien Corporation's stockholders have provided $20,000,000 of capital, when they purchased new issues of stock
shepuryov [24]

Answer:

$13,000,000

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3 0
3 years ago
The following are selected items derived from Dibb Company's adjusted trial balance on December 31, 2016: Loss on sale of land $
natta225 [31]

Answer:

<h2>                     Dibb Company</h2><h2>                 Income Statement </h2><h2>                 December 31, 2016</h2>

Revenues and gains

    Sales revenues (net)                      <u>$198,000</u>

         Total revenues and gains         $198,000

Expenses and losses

    Cost of goods sold                        ($130,000)

    Loss on sale of land                      <u>    ($5,000)</u>  

         Total expenses and losses      ($135,000)

Net income before taxes                    $63,000

    Income taxes                                  <u>($18,900)</u>

Net income                                           <u>$44,100</u>

Explanation:

A multi-step income statement uses multiple calculations to determine the company's net income, therefore, it is more detailed than single step income statements. In this case, the accounts included were really few, so the income statement is relatively simple.

3 0
3 years ago
Read 2 more answers
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