Answered: An obligation will be amortized by…

An obligation will be amortized by quarterly payments of P670 for 10 years. If interest is at 6% compounded quarterly, find: b. the outstanding principal after 7 years

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 5Q: If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the...

See similar textbooks

Related questions

Q: a fully amortized loan is made for $1,00,000 at 6% for 30 years calculate total amount of interest…

A: The amortization schedule gives information to the borrower and lender about the payment due and the…

Q: An obligation will be amortized by quarterly payments of P670 for 10 years, If interest is at 6%…

A: Quarterly payment (P) = P 670 Period = 10 Years Total number of quarterly payments = 10*4 = 40…

Q: A $17,000 loan is to be amortized for 10 years with quarterly payments of $621.45. If the interest…

A: Unpaid Balance after sixth payment is equal to present value of annuity of $621.45 remaining period…

Q: If the single payment present worth factor for 10 years is 0.30656. Determine the interest rate…

A: The present factor is the present value of $1 that has to be received/paid in the future.

Q: loan is to be amortized by equal payments of P5,000 at the end of each six months for 10 years. If…

A: Using excel PV function to calculate the present value of loan

Q: A debt of P10,000 with interest at the rate of 20% compounded semiannually is to be amortized by 10…

A: A deferred annuity is the annuity plan under which payment is accumulated for a certain period and…

Q: the interest rate on 6400 loan is 10% componded semi annually. if the loan is to be repaid by…

A: A loan amortization table is the schedule of repayment of a loan it includes the bifurcation of…

Q: An obligation will be amortized by quarterly payments of P5,000 for 10 years. If interest is 6%…

A: The remaining liability can be computed as the present value of the remaining payments that are due…

Q: A debt of 8,800 with interest at 5% payable semi annually will be discharged by payment of 1,200 at…

A: Here, Debt Amount is 8,800 Interest Rate is 5% Compounding period is Semi-Annual Payment Duration is…

Q: A contract can be fullfilled by making an immediate payment of $5564, or equal payments at the end…

A: Installment is the amount of periodic payments the lender has to make to the lender in order to pay…

Q: A $12,000 loan is to be amortized for 10 years with quarterly payments of $383.06. If the interest…

A: A loan is a facility provided by financial institutions and credit union to its customers under…

Q: A loan is amortized over five years with monthly payments at a nominal interest rate of 12%…

A: Borrowings are the liability that is used to finance the requirement of the funds. The borrower…

Q: A loan company advertises that $100 borrowed for one year may be repaid by 12 monthly installments…

A: Effective annual interest is the amount which is expressed in terms of percentage paid annually to…

Q: A loan of P12, 500 is to be repaid with equal quarterly payments for one year with an interest of 6%…

A: Amortization table is a schedule which shows periodic lease or loan payments. The periodic payment…

Q: A loan of 200000€ will be repaid with %12 nominal interest. convertible over 3 months. the debt is…

A: Loan Amount is 200,000 Nominal interest rate convertible over 3 months is 12% Time period is 72…

Q: A debt of $5000 with interest 5% compounded 6-monthly is amortized by equal annual semi payments…

A: Present value annuity @ 2.5% for 6 periods = 5.50813

Q: A debt is amortized for 4 years by a series of payments that decreases annually by ₱ 500, the first…

A: Answer: Year payment {(1+i)^n-1/i} Uniform payment 1 5000 1.00 5000.00 2 4500 2.05 9225.00…

Q: An obligation will be amortized by quarterly payments of P670 for 10 years. If interest is at 6%…

A: Quarterly payment (Q) = P 670 Duration (n) = 10 years = 40 payments r = 6% per annum = 1.5% per…

Q: A loan is repaid by making payments of $2000 at the end of every six months for 12 years. If…

A: Semiannual payment (c) = $2000 Semiannual period (n) = 24 (i.e. 12 years * 2) Nominal interest rate…

Q: You have taken a loan of $76,000.00 for 22 years at 5.2% compounded quarterly 1st-3rd month…

A: Payment refers to the periodic payments which are made in lieu of repayment of a loan. Payment…

Q: -A debt requires payments of $750 at the end of every three months for 8 years. Calculate the…

A: Interest charged on Debt: Interest is applied to practically all debts, and additional costs are…

Q: An obligation of P35, 000 is to be repaid with equal monthly payments for 6 months with an interest…

A: As per time value of money concept, a sum of amount invested today will have more value in future…

Q: A debt is amortized for 4 years by a series of payments that decreases annually by P 500, the first…

A: Time period = 4 years First payment of lease = P 5,000 Annual decrease = P500 Interest rate = 5%

Q: If you borrow $5000 that you agree to repay in 8 equal quarterly payments at 2.8% interest per…

A: given, Principal = $5000 r=2.8% per quarter number of quarter = 8

Q: For 20-year, $100,000 loan at 4.5% APR (same as above) what portion of the monthly payment in Month…

A: A loan is a borrowed amount by one person from another person. The borrower expects to pay a…

Q: If the interest rate is 7.5% per year and the principal is 2,500, determine the amount of interest…

A: Interest= 2500 * 7.5% * (20/12) = 312.50 20/12 is done as the interest is for 12 months and we need…

Q: A debt of P10,000 with yearly interest of 24% is to be amortized over the next 6 years with the…

A: Debt paid in equal annual payment from year 1 to year 6. Amortization table used to display the…

Q: What principal amount is equivalent to a withdrawal of 10,600 on the 2ndyear, 4,000 on the 4thyear,…

Q: A principal of 7000 Rial is invested at rate 9% interest for 8 years. Determine the future value if…

A: In this question future value is to be find out. Future value is the value of an asset which grows…

Q: A $14,000 loan is to be amortized for 10 years with quarterly payments of $467.98. If the interest…

A: Given information: Loan amount $14,000 Number of years 10 Paying Quarterly $467.98 Interest rate is…

Q: A debt of P100,000 with interest at the rate of 18% compounded semi-annually is to be amortized by 5…

A: Loan is a value which is borrowed from external sources like a bank and this amount is repaid later…

Q: An obligation will be amortized by quarterly payments of P670 for 10 years, If interest is at 6%…

A: Quarterly payment (P) = P 670 Period = 10 Years Number of monthly payments (n) = 10*12 = 120…

Q: What is the (a) present value and (b) compound interest earned for 3 years and 9 months of P84,500…

A: Given, The future amount is P84,500 Rate is 20% Term is 3 years and 9 months

Q: If the interest rate is 13% compunded semi-annually made on the account, and the obligations are…

A: Given Information: Interest rate - 13% compounded semi-annually Deposit - P13,521 Withdrawal -…

Q: A P15,000 loan at 12% compounded quarterly is to be amortized every 3 months for 12 years. Find the…

A: Here, To Find: Quarterly payment =? Construction of amortization schedule =?

Q: For 20-year, $100,000 loan at 4.5% APR what portion of the monthly payment in Month 3 of the…

A: Loan $100000 Interest 4.5% APR Interest annual=100000*4.5%=$4500 Monthly=4500/12=$375

Q: A loan is to be amortized by equal payments of P500.00 each at the end of every six months for ten…

A: solution given Interest rate 7% compounded semiannually Equal payments 500 Number of…

Q: An obligation of 2500 falls due at the end of 7 years. If money is worth j12 = 10%, and an…

A: This is present value problem with monthly compounding interest rate.

Q: An obligation will be amortized by quarterly payments of P5,000 for 10 years. If interest is 6%…

A: Given a certain rate of return, present value (PV) is the current value of a future sum of money or…

Q: A $14,000 loan is to be amortized for 10 years with quarterly payments of $511.78. If the interest…

A: An amortized loan is a type of loan with scheduled, periodic payments that are applied to both the…

Q: A loan of $92,800.00 is repaid by equal payments made at the end of every three months for 3 years.…

A: Installment is the amount paid to the loan giver in order to repay the loan in a set period of time.…

Q: A loan of P50k requires quarter payments of P2875 over 10-year period. These payments include…

A: Loan amount (L) = P 50000 Quarterly payment (Q) = P 2875 Duration (n) = 10 years = 40 payments Let r…

Q: Debts of $1,800 and $3,750 are due in one year and eighteen months from now, respectively.…

A: Amount due in 18 months is $3750 Amount due in one year is $1800 Replancement payment in 9 months is…

Q: A debt of $22,000 with interest of 10% compounded quarterly is to be amortized by payments of…

A: Total installment amount includes the interest expense as well as a portion of the principal amount.…

Q: Monthly payments are to be made against an $850,000 loan at 7.25% compounded annually with a 15-…

A: An amortizing loan is a type of debt that requires regular monthly payments. Each month, a portion…

Q: Find the semi-annual payment of a P15,000 debt to be amorlized by 5 equal payments at the end of…

A: Solution:- Given, Loan amount = PV = P15,000 Number of payments = n = 5 Interest rate = i = 15%/2…

Q: what would be your debts at the end of the term according to each situation?

A: A loan is accompanied with interest that is paid in equal installments over an agreed period of…

Q: A debt of 8,800 with interest at 5% payable semi annually will be discharged by payment of 1,200 at…

A: The amortization schedule can be prepared as follows : Periods Beginning amount Payment Interest…

Q: A loan of P 10,000 with 10% interest compounded semi-annually is to be amortized by semi-annual…

A: Loan (A0) = P10,000 Interest rate (r) = 10% compounded semi-annually = 10/2 = 5% Period (n) = 5…

Concept explainers

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.

Question

An obligation will be amortized by quarterly
payments of P670 for 10 years, If interest is at 6%
compounded quarterly, find:
b. the outstanding principal after 7 years

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?
Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual interest rate of 6%, and payable in four months. How much interest will Marathon Peanuts owe at the end of four months? A. $2,600 B. $7,800 C. $137,800 D. $132,600
An obligation will be amortized by quarterly payments of P5,000 for 10 years. If interest is 6% compounded quarterly, find: c. the remaining liability just after the 15th payment d. how much of the 15th payment interests, and how much goes to the principal?
An obligation will be amortized by quarterly payments of P670 for 10 years. If interest is at 6% compounded quarterly, find: the present value of the loan; the outstanding principal after 7 years; the remaining liability just after the 30th payment; how much of the 20th payment is interest, and how much goes to principal?
An obligation will be amortized by quarterly payments of P5,000 for 10 years. If interest is 6% compounded quarterly, find: a. the present value of the loan b. the outstanding principal after 7 years
A debt of P120,000 is to be amortized by equal payments at the end of every quarter for 2 years. If the interest charged is 12% compounded semi-annually, find the outstanding principal after each payment is made. Construct an amortization schedule.
A loan is to be amortized by equal payments of P5,000 at the end of each six months for 10 years. If the interest is based on 7% compounded semiannually, find: a. the present value of the loan b. The outstanding principal just after the 8 th payment; and c. The remaining liability after 8 years.
A debt of P10,000 with 10% interest compounded semi-annually is to be amortized by semi-annual payment over the next 5 years. The first due in 6 months. Determine the semi-annual payment.
A debt of P17,800 is amortized by making equal payments at the end of every six months for three years, and interest is 7.25% compounded semi-annually. Construct an amortization schedule.
A debt of 15,000 with interest at the rate of 15% compounded semiannually is to be amortized by 3 equal payments at the end of each 6 months, the first payment is to be made after 1 year. Find the semiannual payment and construct an amortization schedule tabulation.
. A debt of P5,000 with interest at 6% payable quarterly will be discharged, interest included, by equal payments at the end of each 3 months for two years. Construct the amortization schedule
A debt of 8,800 with interest at 5% payable semi annually will be discharged by payment of 1,200 at the end of each 8 periods as long as necessary, with a final smaller payment of 8 periods after the last 1200 is paid due to COVID19. How much will be the beginning amount after the last period? How much will be the final payment after the last period? How much will ve the interest after the last period? Give the amortization schedule containing the period, beginning amount, payment, interest, repayment and ending balance. Show your solution, dont use excel