a. What was the balance of the loan at the end of the first year? Round to the nearest cent b. What was the balance of the loan at the end of the second year? Round to the nearest cent c. What amount at the end of the third year will settle the loan?
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- 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?Sam's borrows $250,000 payable over five years, with an interest rate of 10% per year on the unpaid balance. The repayment schedule calls for five equal annual payments, the first occurring at the end of year 1. What is the remaining balance of this loan at the end of year 3. 149,096 52,153 164,006 114,458Olfert Inc. is repaying a loan of $52500.00 by making payments of $4700.00 at the end of every six months. If interest is 7.5% compounded semi-annually, the outstanding balance after the first, second, third payment will be respectively: O 49268.75, 47565.08 and 43995.14 O 49768.75, 45015.08 and 42105.48 49768.75, 46935.08 and 43995.14 O48425.12, 45238.21 and 42355.23 Mrs. Robinson made
- Marpole Carpet Cleaning borrowed $7600 from Richmond Credit Union at 8% compounded quarterly. The loan is to be repaid by equal quarterly payments over a two-year term. Construct the amortization schedule for the loan.Colson Company has a line of credit with Federal Bank. Colson can borrow up to $407,000 at any time over the course of the Year 1 calendar year. The following table shows the prime rate expressed as an annual percentage, along with the amounts borrowed and repaid during the first four months of Year 1. Colson agreed to pay Interest at an annual rate equal to 2.00 percent above the bank's prime rate. Funds are borrowed or repaid on the first day of each month. Interest is payable in cash on the last day of the month. The interest rate is applied to the outstanding monthly balance. For example, Colson pays 6.25 percent (4.25 percent - 2.00 percent) annual Interest on $83,300 for the month of January. Month January February Month January February March April March April Required: a. Compute the amount of Interest that Colson will pay on the line of credit for the first four months of Year 1. Note: Do not round intermediate calculations. Round your final answers to the nearest whole…The finance department of your company needs to separate the interest and principal of the final payment of a loan. The company borrowed 20,000 at 8% compounded quarterly with month end payments for two years. 1. What are the correct portions assigned to principal interest of the final payment?
- Falco Inc. financed the purchase of a machine with a loan at 3.34% compounded semi-annually. This loan will be settled by making payments of $7, 100 at the end of every six months for 7 years. a. What was the principal balance of the loan? b. What was the total amount of interest charged?Sheridan Service has a line of credit loan with the bank. The initial loan balance was $7000.00. Payments of $2500.00 and $3000.00 were made after five months and nine months respectively. At the end of one year, Sheridan Service borrowed an additional $4000.00. Ten months later, the line of credit loan was converted into a collateral mortgage loan. What was the amount of the mortgage loan if the line of credit interest was 7% compounded monthly? The amount of the loan is $. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)Colson Company has a line of credit with Federal Bank. Colson can borrow up to $436,000 at any time over the course of the calendar year. The following table shows the prime rate expressed as an annual percentage along with the amounts borrowed and repaid during the first four months of the year. Colson agreed to pay interest at an annual rate equal to 2.00 percent above the bank's prime rate. Funds are borrowed or repaid on the first day of each month. Interest is payable in cash on the last day of the month. The interest rate is applied to the outstanding monthly balance. For example, Colson pays 6.25 percent (4.25 percent +2.00 percent) annual interest on $77,700 for the month of January. Amount Borrowed Prime Rate for the Month Month January February March April or (Repaid) $ 77,700 4.25% 120,700 (16,500) 28,400 3.25 3.75 4.25 Required a. Compute the amount of interest that Colson will pay on the line of credit for the first four months of the year. b. Compute the amount of…
- Colson Company has a line of credit with Federal Bank. Colson can borrow up to $362,500 at any time over the course of the Year 1 calendar year. The following table shows the prime rate expressed as an annual percentage, along with the amounts borrowed and repaid during the first four months of Year 1. Colson agreed to pay Interest at an annual rate equal to 1.50 percent above the bank's prime rate. Funds are borrowed or repaid on the first day of each month. Interest is payable in cash on the last day of the month. The Interest rate is applied to the outstanding monthly balance. For example, Colson pays 6.00 percent (4.50 percent +1.50 percent) annual Interest on $78,000 for the month of January. Prime Rate Amount Borrowed or (Repaid) for the Month January February Month $ 78,000 4.50% 119,500 3.50 (15,400) 26,800 4.00 4.50 March April Required: a. Compute the amount of Interest that Colson will pay on the line of credit for the first four months of Year 1. Note: Do not round…Colson Company has a line of credit with Federal Bank. Colson can borrow up to $315,500 at any time over the course of the calendar year. The following table shows the prime rate expressed as an annual percentage along with the amounts borrowed and repaid during the first four months of the year. Colson agreed to pay interest at an annual rate equal to 2.00 percent above the bank's prime rate. Funds are borrowed or repaid on the first day of each month. Interest is payable in cash on the last day of the month. The interest rate is applied to the outstanding monthly balance. For example, Colson pays 6.25 percent (4.25 percent + 2.00 percent) annual interest on $76.000 for the month of January. Month January February March April Amount Borroed or (Repaid) $ 76,000 121,200 (20,900) 27,500 Prime Rate for the Month 4.25% 3.25 3.75 4.25 Required a. Compute the amount of interest that Colson will pay on the line of credit for the first four months of the year. b. Compute the amount of…Colson Company has a line of credit with Federal Bank, Colson can borrow up to $386,000 at any time over the course of the calendar year. The following table shows the prime rate expressed as an annual percentage along with the amounts borrowed and repaid during the first four months of the year. Colson agreed to pay interest at an annual rate equal to 2.50 percent above the bank's prime rate. Funds are borrowed or repaid on the first day of each month. Interest is payable in cash on the last day of the month. The interest rate is applied to the outstanding monthly balance. For example, Colson pays 6.25 percent (3.75 percent + 2.50 percent) annual interest on $81,000 for the month of January. Month January February March April Amount Borrowed or (Repaid). $ 81,000 117,900 (24,400) 27,600 Required a. Compute the amount of interest that Colson will pay on the line of credit for the first four months of the year. b. Compute the amount of Colson's liability at the end of each of the first…
