A debt of $30,000 is repaid over 12 years with payments occurring quarterly. Interest is 9% compounded semi-annually. (a) What is the size of the periodic payment? (b) What is the outstanding principal after payment 10? (c) What is the interest paid on payment 11? (d) How much principal is repaid in payment 11?

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 1EA: Halep Inc. borrowed $30,000 from Davis Bank and signed a 4-year note payable stating the interest...
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A debt of $30,000 is repaid over 12 years with payments occurring quarterly. Interest is 9% compounded
semi-annually.
(a) What is the size of the periodic payment?
(b) What is the outstanding principal after payment 10?
(c) What is the interest paid on payment 11?
(d) How much principal is repaid in payment 11?
Transcribed Image Text:A debt of $30,000 is repaid over 12 years with payments occurring quarterly. Interest is 9% compounded semi-annually. (a) What is the size of the periodic payment? (b) What is the outstanding principal after payment 10? (c) What is the interest paid on payment 11? (d) How much principal is repaid in payment 11?
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