Question
Asked Oct 30, 2019
1 views

MMS Corp borrows $1,650,000 today for a new building. The loan is an equal principal payment loan with an APR of 6.5% compounded monthly. Payments are due monthly and the term of the loan is 9 years.

The current portion of debt in month 16 is?

 
check_circle

Expert Answer

Step 1

Calculation of Current Portion of Debt in Month 16:

The current portion of month debt 16 is $183,333.33.

Excel Spreadsheet:

...
В
A
1 Cost of Building
$1,650,000
2 Number of Periods
108
3 Current Portion of Debt $183,333.33
help_outline

Image Transcriptionclose

В A 1 Cost of Building $1,650,000 2 Number of Periods 108 3 Current Portion of Debt $183,333.33

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

Related Finance Q&A

Find answers to questions asked by student like you

Show more Q&A add
question_answer

Q: At time 0 you had $2500 in the bank and 21 years later you had $15650.  Calculate the effective annu...

A: Effective interest rate can be described as the interest rate gained or paid in actual on a project....

question_answer

Q: What annual rate of return is earned on a $5,000 investment when it grows to $9,000 in five years? (...

A: Let r be the annual rate of return, earned on a $5,000 investment when it grows to $9,000 in five ye...

question_answer

Q: Camber Corporation has to decide if they can finance purchasing 10 new machines for all their manufa...

A: 1.The original cost per machine is $1,730,000 and the overall cost needed to buy 10 machines is as f...

question_answer

Q: Atlantic Corporation is the largest logging company in the north eastern part of the United States. ...

A: a.Calculate the value of the stock as follows:

question_answer

Q: Cash flows estimation and capital budgeting: You are the head of finance department in XYZ Company. ...

A: NPV refers to the net present value of an investment. It is calculated as the present value of futur...

question_answer

Q: (6) A benchmark index has three stocks priced at $23, $43, and $56. The number of outstanding shares...

A: Please see the table on the white board.

question_answer

Q: solve the following showing all workings in microsoft word   It is now January 1, 2018 you plan to m...

A: Future value annuity due is a method used to calculate the total amount at the end of a period when ...

question_answer

Q: Your company is currently considering two investment projects. Each project requires an upfront expe...

A: Payback period can be defined as the time length required by the project to recover the total cash o...

question_answer

Q: At age 18, Marcia started depositing $2000 per year at the end of each year into an account earning ...

A: Annuity, A = $ 2,000Rate of interest = r = 12%number of annuities, n = 8