Question
Asked Sep 29, 2019
43 views

Assume the following information for a car note:

Original loan amount = $23,500 Annual interest rate = 7.25% Term of loan = 24 months

What is the principal balance on the loan after six months?

check_circle

Expert Answer

Step 1

Calculation of Principal Balance:

The principal balance on the loan after six months is $17,939.55.

Excel Spreadsheet:

...
help_outline

Image Transcriptionclose

А В C S23,500 1 Loan Amount 2 Interest Rate 0.60% 3 Number of Periods 24 4 BeginningPavments Principal Interest Principal S23,500 S1,054.82 $141.98 S912.84 S22,587.16 $22,587.16 S1,054.82 |$136.46 |S918.36 S21,668.80 $21,668. $20,744.90 $1,054.82 |S125.33 S929.49 $19,815.41 $19,815.41 S1,054.82 S119.72 S935.10S18,880.31 $18,880.31 S1,054.82 S114.07 S940.75 $17,939.55 Ending Period 5 Balance 6 1 7 2 $1,054.82 S130.92 S923.9 $20,744.90 8 3 9 10 5 11 6 LT.

fullscreen

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Business

Finance

Mortgages

Related Finance Q&A

Find answers to questions asked by student like you
question_answer

Q: How long would it take an investment to double under each of the following conditions? (a) Interest ...

A: Part A and B: Calculation of Duration of Investment:a. The duration of investment is 21 years and 0....

question_answer

Q: Please show all equations and work as needed. Make the correct answer clear. If possible, please typ...

A: The operating cash flows are the sum of the operating profit after tax and the non-cash expenses. In...

question_answer

Q: Last Tuesday, Green Caterpillar Garden Supplies Inc. lost a portion of its planning and financial da...

A: Calculation of initial investment and NPV:Answer:Initial investment is $9,987,714 and NPV is $555,73...

question_answer

Q: I have a question and I literally don't know where to begin.  I am provided with a table of stock pr...

A: Let me explain to you, what you have been asked to do. But before that let me explain what informati...

question_answer

Q: Present value with A= 25,000, r=10% compounded quarterly, t=5 years

A: Plese see the formula on the white board. The symbols have the same meaning as in the question; addi...

question_answer

Q: b.  George and Shirley are married and file a joint return in 2018. During the year, George earns wa...

A: Situation: Married and filing jointly.Rule: The additional Medicare tax is 0.9% on wages above $250,...

question_answer

Q: You borrowed $700 at 5% compounded quarterly. Yourpayments are $150 at the end of each year. How man...

A: We will adopt the following approach:It's a typical time value of money case, where we have to find ...

question_answer

Q: Financial information for Powell Panther Corporation is shown below: Powell Panther Corporation: Inc...

A: 1.Calculate the net operating capital as follows:

question_answer

Q: Ed Draycutt is the engineering manager of Airway Technologies, a firm that makes computer systems fo...

A: You have asked a case sudy with four sub parts. I will answer the first three sub parts. Please post...

question_answer

Q: You are interested in buying a brand new jalopy and expect the purchase price to be $19,000. The car...

A: Purchase Price = $19,000Down Payment = $1,000 Calculation of Loan Amount (PV):

question_answer

Q: The corporate valuation model, the price-to-earnings (P/E) multiple approach, and the economic value...

A: Calculate the free cash flows as follows:

question_answer

Q: What is the present value of $1,150 deposited at the end of each quarter year for 12 years earning 6...

A: Calculation of Present Value:The present value is $38,124.16.Excel Spreadsheet:

question_answer

Q: 1  Borrow $178,000 at 5.25% for 30 years 2  Borrow $178,000 at 4.00% for 15 years What are the 2 pay...

A: Calculation of Payments and Total Interest Paid for 2 Mortgages:Assuming both the mortgages is paid ...

question_answer

Q: Please show all equations and work as needed. Make the correct answer clear. If possible, please typ...

A: The present value (PV) of the investment is the sum of the present value of year 1 cash flows, year ...

question_answer

Q: Questions E5-6

A: Calculation of Annual Deposits:The annual deposit is $4,853.48.Excel Spreadsheet:

question_answer

Q: b) The Moore Corporation has operating income (EBIT) of $750,000. The company’s depreciation expense...

A: Net income = (EBIT - interest) x (1 - tax rate)EBIT = $ 750,000As compnay is 100% equity finance, th...

question_answer

Q: A friend of yours contacts you about an illegal payoff scheme to judges she is aware of at the priso...

A: Calculate the maturity period to double the money as follows:MS-Excel --> Formulas --> Financi...

question_answer

Q: Dimeback Co. has total assets of $8,500,000 and a total asset turnover of 1.8 times. If the return o...

A: Calculation of Profit Margin:The profit margin is 4.72%.Excel Spreadsheet:

question_answer

Q: QUESTION 1: Which groups benefited most from China imposing an export quota on rare earth metals? Di...

A: Hi, since there are multiple questions posted, we will answer first question as per our policy. Kind...

question_answer

Q: You want to buy a new sports coupe for $84,500, and the finance office at the dealership has quoted ...

A: APR refers to annual percentage rate. An APR is the annual rate that is charged for borrowing or can...

question_answer

Q: For each of the following annuities, calculate the annual cash flow. (Enter rounded anware adirected...

A: We can find the annual payment using PMT function of excel. The PMT function works with following in...

question_answer

Q: Blue Angel, Inc., a private firm in the holiday gift industry, is considering a new project. The com...

A: Since the question involves interplay of lots of variable, we will resort to Microsoft excel to solv...

question_answer

Q: Joe is buying some kitchen equipment for his new apartment. The total cost is $ 3,800$3,800 and he p...

A: Purchase Price = $3,800Down Payment = $380 Calculation of Loan Amount (PV):

question_answer

Q: Josh Smith has compiled some of his personal financial data in order to determine his liquidity posi...

A: a) Calculation of liquidity ratio:Josh's liquidity ratio is 2.17.Excel spreadsheet:

question_answer

Q: A mine is for sale. A mining engineer estimates that, at the current production levels, the mine wil...

A: Computation of present value of annuity:Answer:The maximum amount of bid that engineer can bid is $8...

question_answer

Q: You are scheduled to receive $15,000 in two years. When you receive it, you will invest it for six m...

A: Given,Money Received after 2 years and Present Value of the investment for 6 years (PV) = $15,000Tim...

question_answer

Q: Consider a $5,000 deposit earning 10 percent interest per year for ten years. What is the future val...

A: Future Value (FV)Future value is the specific value or amount of an investment at a specific date in...

question_answer

Q: Mildly impressed, your two year old takes a break to ponder compounding. After lunch, a nap and two ...

A: The number of compounding periods for annual has 1 compounding period, semi-annual has 2 compounding...

question_answer

Q: Bond interest payments before and after taxes   Charter Corp. has issued 2,798 debentures with a tot...

A: Calculation of Amount of Interest per bond, Total Interest Expense and After-tax Interest Cost:The A...

question_answer

Q: There are vairous measures to evaluate a company's finances.  What are three measures that look at s...

A: Your question isn't very clear and could be answered in atleast two different ways. I will provide t...

question_answer

Q: I need help calculating the interest earned on interest.

A: Calculate the future value as follows:

question_answer

Q: Lydic Corporation has bonds on the market with 15.5 years to maturity, a YTM of 7.6 percent, a par v...

A: Calculation of annual coupon rate: The annual coupon rate is 8.30%.Excel spreadsheet:

question_answer

Q: Please show all equations and work as needed. Make the correct answer clear. If possible, please typ...

A: The present value (PV) of future cash inflows is calculated by dividing the future cash flows with t...

question_answer

Q: what are corporate finance?

A: Corporate Finance:Corporate finance is a part of finance which deals with the investment, financing,...

question_answer

Q: Solve the problem. If​ necessary, use the accompanying table of monthly payments. Round your answer ...

A: Mortgage Amount (PV) = $105,250Interest rate (rate) = 10%Term of Mortgage = 25 yearsNumber of Paymen...

question_answer

Q: Assuming that the rates of return associated with a given asset investment are normally distributed;...

A: a) Calculation of standard deviation:Standard deviation is 0.3516.Standard deviation can be derived ...

question_answer

Q: The Argentina Fund has $450 million in assets and sells at a discount of 6.3 percent to NAV. If the ...

A: Net asset value per share can be computed with the help of a fraction, where numerator of the fracti...

question_answer

Q: I asked this question before, and got an answer, but I have a question about the response that was g...

A: The formula that you shared from the textbook is used for time-value-of-money calculations. Such a f...

question_answer

Q: Given relatively stable financial market conditions, determine which one of the followingbonds would...

A: The bonds that would exhibit the least price volatility is “5-year, 10% coupon bond”.

question_answer

Q: Mr. Husker’s Tuxedos Corp. ended the year 2021 with an average collection period of 33 days. The fir...

A: Average Collection period = Average receivables x 365 / Credit salesHence, average receivables = Cre...

question_answer

Q: The annual interest rate on a credit card is 16.99%. If a payment of $300.00 is made each month, how...

A: Calculation of Number of Months:The number of months to pay off the unpaid balance 8.74 months or 9 ...

question_answer

Q: Solve the problem. If​ necessary, use the accompanying table of monthly payments. Round your answer ...

A: Mortgage Amount (PV) = $73,500Interest rate (rate) = 10.5%Term of Mortgage = 20 yearsNumber of Payme...

question_answer

Q: I asked this question (provided below) and was able to follow the response.  I also got the same ans...

A: Thanks a lot for appreciating the earlier solution. I also appreciate your question. Let me help you...

question_answer

Q: Yu plan to deposit $1,000 in Year 1, $1,200 in Year 2 and $2,000 in Year 4 in your savings account. ...

A: We will have to figure out the future value of each of the series of cash flows and add them to get ...

question_answer

Q: How to calculate breakeven balance

A: Break even analysis explains how much total revenue is required to cover both the fixed and variable...

question_answer

Q: What impact do bond ratings have on the cost of debt to the issuing firm?

A: Bond Ratings: It is the ratings that portrayals of the reliability of corporate or government bonds....

question_answer

Q: Questions E5-4

A: We will make use of the NPV function of excel to calculate the NPV of this investment. If NPV is pos...

question_answer

Q: Cash flows from operating-net loss On its income statement for a recent year, continental Airlines, ...

A: The contradiction between the loss and the positive cash flows is as follows:With the net loss repor...

question_answer

Q: The following numbers were randomly generated from a standard normal distribution: -0.25    0.3     ...

A: The formula for simulated price,S based on the initial closing price of S0 will be given by the equa...

question_answer

Q: An Iowa state savings bond can be converted to $100 at maturity 22 years from purchase. If the state...

A: Calculation of bond price:The price at which the state can sell its bond is at $18.39.Excel spread s...