The total interest paid on a 15 year $250,000 mortgage at 7% annual interest rate. Assume tha the mortgage is kept for the full 15 years equal .$151,750 True O False
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- Halep Inc. borrowed $30,000 from Davis Bank and signed a 4-year note payable stating the interest rate was 4% compounded annually. Halep Inc. will make payments of $8,264.70 at the end of each year. Prepare an amortization table showing the principal and interest in each payment.Electro Corporation bought a new machine and agreed to pay for it in equal annual installments of 5,000 at the end of each of the next 5 years. Assume a prevailing interest rate of 15%. The present value of an ordinary annuity of 1 at 15% for 5 periods is 3.35. The future amount of an ordinary annuity of 1 at 15% for 5 periods is 6.74. The present value of 1 at 15% for 5 periods is 0.5. How much should Electro record as the cost of the machine? a. 12,500 b. 16,750 c. 25,000 d. 33,700Future Value Hugh Colson deposited 20,000 in a special savings account that provides for interest at the annual rate of 12% compounded semiannually if the deposit is maintained for 4 years. Required: Calculate the balance of the savings account at the end of the 4-year period.
- On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10% interest rate. Each annual payment is in the amount of $39,569 and payment is due each Dec. 31. What is the journal entry on Jan. 1 to record the cash received and on Dec. 31 to record the annual payment? (You will need to prepare the first row in the amortization table to determine the amounts.)On July 1, a company sells 8-year $250,000 bonds with a stated interest rate of 6%. If interest payments are paid annually, each interest payment will be ________. A. $120,000 B. $60,000 C. $7,500 D. $15,000A $96,000 mortgage is to be amortized by making monthly payments for 20 years. Interest is 7.1% compounded semi-annually for a six-year term. (a) Compute the size of the monthly payment. (b) Determine the balance at the end of the six-year term. (c) If the mortgage is renewed for a six-year term at 6% compounded semi-annually, what is the size of the monthly payment for the renewal term?
- A $98,000 mortgage is to be amortized by making monthly payments for 20 years. Interest is 3.5% compounded semi-annually for a six-year term.(a)Compute the size of the monthly payment.(b)Determine the balance at the end of the six-year term.(c)If the mortgage is renewed for a six-year term at 4% compounded semi-annually, what is the size of the monthly payment for the renewal term?A $150,000 mortgage was amortized over 20 years by monthly repayments. The interest rate on the mortgage was fixed at 5.40% compounded semi-annually for the entire period. a. Calculate the size of the payments rounded up to the next $100. b. Using the payment from part a., calculate the size of the final paymentCalculate the total amount paid over the term of a five-year fixed rate mortgage of $260 000 amortized over 25 years at an annual interest rate of 6.49%
- The interest rate for the first five years of a $95,000 mortgage is 7.2% compounded semiannually. Monthly payments are based on a 25-year amortization. Suppose a $3,000 prepayment is made at the end of the third year. What will be the principal balance at the end of the five-year term?A $150,000 mortgage was amortized over 20 years by monthly repayments. The interest rate on the mortgage was fixed at 4.40% compounded semi-annually for the entire period. a. Calculate the size of the payments rounded up to the next $100. Round up to the next 100 b. Using the payment from part a., calculate the size of the final payment. Round to the nearest centOn a $600,000 home mortgage loan with a15-year term at 10.5% APR compounded monthly, compute the total payments on principal and interest overthe first six years of ownership
