ABC company must repay the bank a single payment of $50,000 cash in 5 years for a loan it entered into. The loan is at 8% interest compounded annually. The present value of 1 (single sum) at 8% for 5 years is 0.6806. The present value of an annuity (series of payments) at 8% for 5 years is 3.9927. The present value of the loan (rounded) is:

Q: A company borrows $100,000 by signing a $100,000, 5% note that requires four equal payments of…

A: Note payable $100,000 Interest rate 5% Present value annuity of 4 payments at 5% is 3.5460.

Q: Jeanneth company bought a new machine and agreed to pay in equal annual installment of P300,000 at…

A: Present value of total payment = annual installment  x ordinary annuity of 1 at 12% for five periods…

Q: Janess company bought a new machine and agreed to pay in equal annual installment of P300,000 at the…

A: Solution: Amount should be reported as note payable if financial statements were prepared today =…

Q: A company borrows $2,000,000 at 12% interest per year. If the company repays the loan in full in one…

A: Interest means the extra amount which we received because of investment made and will be paid in…

Q: An initial deposit of $8500 is made into an account now, and a second deposit of $16000 is made into…

A: The future value of any deposits is the compounded value of the deposits made in the specified time…

Q: $10,000 is borrowed at 10% a year interest for five years. At the end of each year, the borrower…

A: Hence, payment made for year 1 is $3,000, year 2 is $2,400, year 3 is $1,920, year 4 is $1,536 and…

Q: a firm borrows 5000 for 5 years at 16%. at the end of 5 years, it renews the loan for an amount due…

A: Data given: P=Loan amount = $ 5000  (Assumed $) r = 16% n= 5 years  After 5 years: Loan is renewed…

Q: 1. A fully secured loan of P30,000 was to be amortized by 10 equal semi-annual payments, the first…

A: As per the honor code, We’ll answer the first question since the exact one wasn’t specified. Please…

Q: Alhambra Corporation borrowed $1 million from Anaheim Bank with the understanding that Alhambra will…

A: here PV  = $1 MILLION or $1,000,000 nper = 6 and PMT  = 175,000. FV = 0. We have to find the rate…

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: 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: $25,000 is borrowed at an annual compound rate of 8%. The loan is repaid with 5 annual payments,…

A: Loan amount is the amount that is borrowed

Q: The Dell Corporation borrowed $10,000,000 at 7% interest per year, which must be repaid in equal EOY…

A: Present Value of annuity refers to the current value of a series of equal cash flows or payments at…

Q: A local bank is advertising that it pays depositors 6% compounded monthly, yielding an effective…

A: Effective Annual Rate refers to the real return on a savings account or any interest-paying…

Q: An amount of $13,000 is borrowed from the bank at an annual interest rate of 14%. a. Calculate the…

A: Amount borrowed - $ 13,000 Annual interest rate - 14% Loan period - 4 years

Q: $10,000 is borrowed at 10% a year interest for five years. At the end of each year, the borrower…

A: Given that the initial borrowed amount is $1000, interest rate is 10% for 5 years and at the end of…

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A: A debt payable seems to be a promissory note that has been written. A borrower acquires a fixed sum…

Q: Bennington Company has borrowed a certain amount from the bank that it will repay in 24 monthly…

A: The term mortgage loan represents the amount borrowed by one person to acquire a house or other real…

Q: You borrow ksh 1,000,000 from a bank for 5 years at 10% compound interest .The loan is repayable in…

A: Present value (PV)= 1,000,000 Time (t)= 5 years Rate (r)= 10% = 0.1   The present value is how much…

Q: A loan of £4,000 is to be repaid over 5 years by a level annuity payable monthly in arrears. The…

A: Calculation of monthly payment: Periodic payment = [P x R x (1+R)^N]/[(1+R)^N-1]Where,P= Loan…

Q: Ahlam borrows AED 3,000,000 to be repaid over 6 years at 8 percent. What is the repayment of…

A: An annual mortgage payment is an annual payment that is to be paid for a specific period of time to…

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A: Here, Amount of Loan is $1,200,000 Interest Rate of Loan is 4 Years Interest Rate is 15% Grace…

Q: Calculate the present value (principal) of a loan made 4 years ago at 12% compounded quarterly if…

A: Repayment amount (FV) =  $ 9600 Annual interest rate = 12% Quarterly interest rate (r) = 12%/4 = 3%…

Q: JPY Inc borrowed $705,000 for 30 years at a rate of 4.68% APR compounded monthly, with first payment…

A: Given: Particulars Amount Borrowed(PV) 705000 Years 30 APR 4.68%

Q: Leroy Inc. signed a 3 year loan for $80,000 with interest rate of 10%. What are the three annual…

A: Introduction: Interest amount = Interest is calculated on Principal amount. Formula = Principal…

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A: Installment Loan relates to giving money to prospective borrower in aggregate or lump-sum but…

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: Dhofar Insurance Company has made an investment in another company that will guarantee it a cash…

A: Given: Cash flows = OMR 37,250 Discount rate = 15% Years = 5

Q: If you borrow S20 000 as a five-year loan from the bank and the bank requires you to make…

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: An amount of $14,000 is borrowed from the bank at an annual interest rate of 11%. a. Calculate the…

A: Here, Borrowed Amount is $14,000 Interest Rate is 11% Time Period is 4 years

Q: De Lima Enterprise plans to borrow 1,000,000 for eight years at 9% with a bank term loan.The bank…

A: Here in this case , to calculate the annual installment we have to use the following formula…

Q: Using the Present Value of an Annuity of 1 TABLE4, calculate the factor. Next, determine the annual…

A: 1. In this case the annual payment is made and thus present value of annuity factor would be used to…

Q: SureWin Company owes an amount of debt to a bank and the bank proposed the following annual payments…

A: The Present Value of a cash flow series: The present value of a cash flow series is calculated as…

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A: Effective rate of interest is the cost of borrowing money from the bank after making all the…

Q: A local bank is advertising that it pays depositors 6% compounded monthly, yielding an effective…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

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A: Loan is a borrowed amount of money for a fixed time period, which is expected to be repaid with…

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A: Loan repayments in equal instalments at equal intervals of time is called an annuity. Initial…

Q: A $550.000 home loan is amortized by equal monthly payments for 25 years at a nominal rate of…

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A: In order to determine the interest expense, the amount reported as notes payable is required to be…

Q: Cassie paid P68 000 to a money lending company after one and a half years to fulfill er loan that…

A: We need to use RATE function in excel to calculate rate of interest Formula is…

Q: An investor had a bank loan to help him in his business. The deal with the bank states that the loan…

A: The value which denotes the present value of some future payments or future value is known as…

Q: Pharoah Productions borrowed some money from the California Finance Company at a rate of 15.40…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: A company borrowed an amount of 400,000 dinars for a period of four years at a compound interest at…

A: Compound Present value of interest rate 5 % for the period of 4 Years  = 1/(1+r)n  R = Rate of…

Q: The Del Corporation borrowed $9.000,000 at 8% interest per year, which must be repaid in equal EOY…

A: Installment is the amount of periodic payment a borrower has to make to its lender in order to pay…

Q: A bank is negotiating a loan. The loan can either be paid off as a lump sum of $140,000 at the end…

A: Using excel PMT function

Q: A.Halep Inc. borrowed $17,128 from Davis Bank and signed a 2-year note payable stating the interest…

A: Annual payment in case of borrowing can be calculated by: = Amount borrowed / Present Value factor…

Mortgages

A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.

Mortgage

The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.