A 3,300,000 loan was granted to a borrower by Norayma Bank with a nominal interest rate of 12% which is paid every year end. The loan matures in 4 years on December 31, 2023. After considering the direct origination cost and origination fees, the market rate on the loan is 8%. 1,124,000 was earned as interest income for the whole term of the loan. If the origination fee was 100,000, determine the initial carrying cost of the loan.

Q: On January 1, 2020, Aggie Company purchased a building for $65,000, making a cash down payment of…

A: Interest Expenses:- It is an amount which one pays over the principal amount of loan or mortgage…

Q: A loan in the amount of $280,000, is contracted over a period of 25 years to finance the purchase of…

A: Here,

Q: Miller borrows $310,000 to be paid off in three years. The loan payments are semiannual with the…

A: Instalment= P x R x (1+R)^N / [(1+R)^N-1] N= 3 years*2 = 6 periods R= 10%/2 = 5%

Q: On January 1 2021 Gundy Enterprises purchases an office building for $ 184,000 , paying $ 44.000…

A: Actual payment of loan = $184,000 – $44,000 = $140,000

Q: An institutional lender is willing to make a loan for $1 million on an office building at a 6…

A: Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the first…

Q: An institutional lender is willing to make a loan for $1 million on an office building at a 10…

A: Excel Spreadsheet: Excel Workings:

Q: Drake Corporation takes out a term loan payable in 12 year-end annual installments of P5,000 each.…

A: Annual payment (P) = P 5000 Interest rate (r) = 14% Number of annual payments (n) = 12

Q: Consider a loan of $98,000 at 7% compounded annually, with 12 annual payments. Find the following.…

A: Loan amortization can be defined as the procedure of amortizing the loan in such a way that the loan…

Q: Uncle Ben InC. arranged a P9,000,000 revolving credit agreement with a group of banks. The firm paid…

A: Revolving Credit: A line of credit that allows the borrower to borrow funds up to a pre-set limit at…

Q: Entei Bank granted a P5,000,000 loan to Raikou Company on January 1, 2020. The annual interest on…

A: Here in this question we are required to find out the total interest income to be presented on the…

Q: Cody Company wants to purchase an asset that costs $150,000. The full amount needed to finance the…

A: a. given, principal = $150,000 rate = 12% n = 6 calculate annual payment: annual loan payment =…

Q: On January 1, 2021, Stoops Entertainment purchases a building for $580,000, paying $110,000 down and…

A: Solution: Journal Entries Date Particulars Debit Credit 31-Jan-21 Interest expense…

Q: Van Buren Resources Inc. is considering borrowing $100,000 for 202 days from its bank. Van Buren…

A: Given:Borrowing amount=$1000000 for 202 daysPayable amount $3000 of interest at maturityRepaid…

Q: On January 1, 2021, Stoops Entertainment purchases a building for $480,000, paying $110,000 down and…

A: Given: Opening balance of borrowing = $370,000 Interest rate = 9% Payment = monthly. Monthly payment…

Q: Which interest rate compounded annually is Watson paying on this loan?

A: Information Provided: Loan amount = $44,940 Periodic payment = $10,000 Years = 10

Q: On January 1, 2018, Kline Inc. borrowed P9,000 from Harvard Co., and on January 1, 2020, it borrowed…

A: A loan is a sort of debt that is taken on by an individual or another institution. The lender, which…

Q: On January 1, 2020, Aggie Company purchased a building for $65,000, making a cash down payment of…

A: Given, Cost of building = $65000 Cash down payment = $5000 Notes Payable = $65000-$5000=$60000…

Q: An investor took out a loan of $15,000 for three years at a variable interest rate where the…

A: An rate of interest swap is Associate in Nursing over-the-counter spinoff go for that counterparties…

Q: LOA Bank Limited quotes a 9 percent interest rate on loans for 1 year. You are seeking a loan of…

A: The rates which are charged by the bank to the borrower on taking loan from the bank is referred as…

Q: On January 1, 2021, Saltimbocca Corporation borrowed $192,772 from Morgan Stanley. Under the terms…

A: The question demands the interest expense for the third year of the loan. In order to determine…

Q: Schuyler Company wishes to purchase an asset costing $117,000. The full amount needed to finance the…

A: The term mortgage refers to a type of loan that is for the long term, and it usually has the asset…

Q: On April 1, 2020, ABC Corporation borrows $50,000 on a 6-month note that charges an annual interest…

A: Total cash paid on maturity = Face value of the Notes + Interest on Notes where, Interest on Notes =…

Q: Suga Bank granted a loan to a borrower on January 1, 2020. The interest rate on the loan is 10%…

A: Carrying value=Principal amount+Direct origination cost-Origination fee received from borrower=P…

Q: Excellent bank has offered you, a GHC 60,000 35year loan to purchase equipment in your Factory. The…

A: Interest is an amount which is charged on deposited or borrowed amount on loan period. It is a cost…

Q: determine the lump-sum amount to be paid at the end of the loan period.

A: Amount: It is the sum of money to be paid at the end of the period. This sum of money also includes…

Q: On January 1, 2018, Jimbo Enterprises purchased new equipment for its training center.  The…

A: Following are the calculation of total interest expense will pay over the life of loan:

Q: Lugia Bank granted a P4,000,000 loan to Ho-oh Company on January 1, 2020. The annual interest of the…

A:

Q: If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the…

A: Liability Liability is define as the financial obligation on the company which are arises during the…

Q: ABC Corporation will be acquiring a P3,000,000 face value loan three months from now. It entered…

A: Interest rate Guarantee: It is the arrangement with bank to fix a most extreme  financing cost to be…

Q: Excellent bank has offered you $40,000, 30-year loan to purchase an equipment in your Factory. The…

A: A = P1+r100n Where  A = Amount P = Principal r = Rate of interest n = Number of periods

Q: A businessman wishes to borrow an amount of K4 million for a term of 3 years. The agreed rate of…

A: The loan schedule statement reflects the information related to the principal portion, the interest…

Q: On January 1, 2020, Lynn Company borrows $3,000,000 from National Back at 11% annual interest. In…

A:

Q: Suicune Bank granted a P5,000,000 loan to Raikou Company on January 1, 2020. The annual interest on…

A: Effective Interest Rate- The effective rate of interest is the interest rate that can be paid or…

Q: On January 1, 2021, Stoops Entertainment purchases a building for $580,000, paying $110,000 down and…

A: Solution 4: Total payments in 15 years = $858,069

Q: Starr Co, has been approved for a $ 100,000 loan commitment from its local bank. The bank has…

A: Loan commitment= $100,000 Term = 1 year Up front fee =75 basis point=0.75% Back end fee =25 basis…

Q: On September 1, 2020, ABC Company borrows $40,000 on a 2-month note that charges an annual interest…

A: Maturity Amount = Amount Borrowed + Interest Rate

Q: Maris Banking Corporation granted a loan to a borrower on January 1, 2020. The interest rate on the…

A: Introduction:- The following basic information as follows:- Loan receivables are balance that is…

Q: Excellent bank has offered you, a GHC 60,000 35year loan to purchase an equipment in your Factory.…

A: GHC=60000 After 35 year the loan amount will be =$134,964.00 Effective Annual Interest Rate-…

Q: On December 31, 2023, JFG Company, a financing institution, lent P4,000,000 to MFG Company due 3…

A: Impairment Loss-:An Impairment Loss is a prominent reduction in the carrying amount of an investment…

Q: On January 1, 2021, Stoops Entertainment purchases a building for $550,000, paying $110,000 down and…

A: An agreement through which a lender lends the money to the borrower, and has the right to take the…

Q: On December 31, 2021, Cholo Bank recorded an investment of P 5,000,000 in a loan granted to a…

A: Annual interest = Loan amount x interest rate x no. of year = P5,000,000 x 10% x 1 year = P500,000

Q: he Flemings secured a bank loan of $320,000 to help finance the purchase of a house. The bank…

A: This question is asking for a monthly payment of a loan of $ 320,000 at 2% per year repayment in 25…

Q: B11 through E30. Column B contains the interest payment for each quarter, and column C contains the…

A: An  amortization schedule (also known as an amortisation table) is a table that outlines each…

Q: Your company borrows $300,000 from the investment bank for building upgrades. It agrees for a (5)…

A: Loan = 300,000 Time Period = N = 5 years Annual Payment in first 4 years , interest rate and final…

Q: On January 1, 2020, Sukuna Bank loaned 4,000,000 to Satori Company. The interest of the loan is 7%…

A: Initial measurement of loans receivables is Fair value plus transaction costs. Direct origination…

Q: The Flemings secured a bank loan of $328,000 to help finance the purchase of a house. The bank…

A: Monthly Installment: installment of the loan is to pay in monthly installments; to split a debt or…

Q: A firm borrows $2,000,000 at 12% annual interest and wishes to pay it back with payments that…

A: Here we will use the concept of time value of money. As per the concept of time value of money the…

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.