Sorry, I withdraw my question.

A sum of K3,000 is borrowed for 2 years at the reducing balance interest rate of 12% p.a. compounded every two-monthly.

kobusy [5.1K]

a) The full loan repayment schedule for the two years is as follows:

<h3>Loan Repayment Schedule:</h3>

Period PV PMT Interest FV

1 $3,000.00 $283.68 $60.00 $2,776.32

2 $2,776.32 $283.68 $55.53 $2,548.17

3 $2,548.17 $283.68 $50.96 $2,315.45

4 $2,315.45 $283.68 $46.31 $2,078.08

5 $2,078.08 $283.68 $41.56 $1,835.97

6 $1,835.97 $283.68 $36.72 $1,589.01

Year #1 end

7 $1,589.01 $283.68 $31.78 $1,337.11

8 $1,337.11 $283.68 $26.74 $1,080.17

9 $1,080.17 $283.68 $21.60 $818.10

10 $818.10 $283.68 $16.36 $550.78

11 $550.78 $283.68 $11.02 $278.12

12 $278.12 $283.68 $5.56 $0.00

Year #2 end

b) The balance of the loan at the end of the seventh repayment period is <u>$1,337.11</u>.

c) The total interest paid for this loan is <u>$404.16</u>.

d) If the borrower decides to terminate the loan after the first year, the termination payment should be <u>$1,589.01</u>.

<h3>Data and Calculations:</h3>

N (# of periods) = 12 months (2 x 6)

I/Y (Interest per year) = 12%

PV (Present Value) = K3000

FV (Future Value) = K0

<u>Results</u>:

PMT every two months = $283.68

Sum of all periodic payments = $3,404.16 ($283.68 x 12)

Total Interest = $404.16

Learn more about loan repayment schedules at brainly.com/question/24576997

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4 0

1 year ago

In 2019, Wesley has a fairly simple tax situation with moderate wage income and a modest amount of interest income. Wesley, age

asambeis [7]

He may file Form 1040.

Explanation:

Form 1040 is the IRS standard form which is used by individual taxpayers to file their annual tax reports.

Form 1040 is the IRS tax form used mostly for personal tax returns submitted by US citizens by the federal government. Form 1040 is a form. The method estimates the taxpayer's gross taxable income and specifies how much the government has to pay or repay.

Who can file? If a person passes the Substantial Appearance Test or the Green Card Test, but some cases exist; people who have a taxable earnings in the US, but refuse to meet the obligation to be resident aliens, must register for taxation purposes for non-resident aliens.

3 0

3 years ago

ou are trying to decide whether to accept or reject a one-year project. The project is estimated to generate $5,000 in increment

Papessa [141]

Answer:

$3,190

Explanation:

Incremental net income before tax = Incremental gross profit - Incremental SG&A expenses

= $5,000 - $400

= $4,600

Incremental net income after taxes = Incremental net income before tax * (1 - Tax rate)

Incremental net income after taxes = $4,600 * (1 - 0.35)

Incremental net income before tax = $4,600 * 0.65

Incremental net income before tax = $2990

Incremental cash flow = Incremental income after taxes + Depreciation

Incremental cash flow = $2,990 + $200

Incremental cash flow = $3,190

3 0

3 years ago

Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $81,400.

ivann1987 [24]

Answer:

$7,326

Explanation:

Double Decline Balance = 2 x SLDP x SLDBV

where,

SLDP = Straight Line Depreciation Percentage

= 100 ÷ useful life

= 100 ÷ 20

= 5 %

and

SLDBV = Straight Line Percentage Book Value

Year 1

Double Decline Balance = 2 x 5% x $81,400

= $8,140

Year 2

Double Decline Balance = 2 x 5% x ($81,400 - $8,140)

= $7,326

Therefore

The machine's second-year depreciation using the double-declining balance method is $7,326.

4 0

3 years ago

Protective covenants: Group of answer choices a.only apply to bonds that have a deferred call provision. b.are primarily designe

tiny-mole [99]

Answer:

B. are primarily designed to protect bondholders

Explanation:

Protective covenants are designed primarily to protect bondholders from future actions of bond issuer. They are also part of a loan agreement that limits certain actions a company may take during the course of the loan to protect the person who lend the money interests. They provide extra protection for the investors. Creditors use it to protect their interests by restricting certain activities of the issuer that could endanger the creditor's interest.

4 0

3 years ago

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