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A construction company borrowed money at 10% per year interest to purchase new heavy equipment
needed for the company’s various projects. If the company got the loan 2 years ago and paid it off
with a single payment of P25,000,000, what was the principal amount of the loan?
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- (engineering economic) An investor gets a loan from a bank of Rp. 500 million to fund new ventures to be run. The loan bears 10% compound interest annually with a five-year repayment period. The interest on the loan along with the principal loan is paid at the same time at the end of the loan period. After 3 years, the bank provides an additional loan of Rp. 300 million but increased the interest to 12% annually and changed the interest calculation based on a single interest calculation. Calculate the repayment of this loan at the end of the loan period and describe the cash flow.RKI Instruments borrowed $4,850,000 from a private equity firm for expansion of its facility for manufacturing carbon monoxide monitors. The company repaid the loan after 1 year with a single payment of $5,300,000. What was the interest rate on the loan? The interest rate on the loan was % per year.A solid waste disposal company borrowed money at 10% per year interest to purchase new haulers and other equipment needed at the company-owned landfill site. If the company got the loan 2 years ago and paid it off with a single payment of $4,600,000, what was the principal amount P of the loan? O a. $3806153 O b. $3810653 O. $3816035 O d. $3801653
- To finance the development of a new product, a company borrowed $29000 at 4% compounded monthly. If the loan is to be repaid in equal annually payments over nine years and the first payment is due one year after the date of the loan , what is the size of the annual payment?Falco Inc. financed the purchase of a machine with a loan at 3.50% compounded semi-annually. This loan will be settled by making payments of $9,100 at the end of every six months for 8 years. a. What was the principal balance of the loan? b. What was the total amount of interest charged?LEW Company purchased a machine at a price of $100,000 by signing a note payable, which requires a single payment of $123,210 in 2 years. Assuming annual compounding of interest, what rate of interest is being paid on the loan?
- General Computers Inc. purchased a computer server for $70,000. It paid 35.00% of the value as a down payment and received a loan for the balance at 4.50% compounded semi-annually. It made payments of $2,850.75 at the end of every quarter to settle the loan. a. How many payments are required to settle the loan? payments Round up to the next payment b. Fill in the partial amortization schedule for the loan, rounding your answers to two Question 3 of 7 b. Fill in the partial amortization schedule for the loan, rounding your answers to two decimal places. Payment Number 0 1 2 Payment Interest Portion Principal Portion Principal Balance $45,500.00 11Your company borrows $500,000 from a bank to finance the purchase of a new machine. The nominal annual Interest rate Is 8%. The loan is to be fully amortized over 2 years, with equal payments made at the end of each 6-month perlod. 1. What will be the total amount of loan principal repald during the entire first year? 2. What will be the total amount of Interest pald during the entire second year? (Note: For each question, please show detalled explanations as to how you proceed to your answer along with detailed calculations).A company borrows $2,000,000 at 12% interest per year. If the company repays the loan in full in one lump sum amount after 3 years, what is the total amount of the payment? $2,420,374 $3,195,568 $2,809,856 $2,662,000
- A company estimates that it will have to replace a piece of equipment at a cost of $800,000 in 5 years. The company has an account that pays 5.6% interest compounded monthly. The company has two options: a lump sum deposit or a sinking fund c) Instead, if a sinking fund is established, how much should each payment be? d) How much will be earned in interest?Cody Company wants to purchase an asset that costs $150,000. The full amount needed to finance the asset can be borrowed at 12% interest. The terms of the loan require equal end-of-year payments for the next 6 years. a) Determine the total annual loan payment. b) What is the total interest to be paid in year 4?You recently purchased an office building for $1,950,000 using the following loan terms: 70% LTV, 20-year amortization, 6.25% interest and monthly compounding. Assuming a net operating income of $150,000 in Year 1 and income taxes equal to $11,000, what is the expected ATCF from Operations in Year 1?