Required information In order to build a new warehouse facility, the regional distributor for Amazon borrowed $2 million at 13% per year interest. If the company repaid the loan in a lump sum amount after 2 years, what was the amount of interest? The amount of interest was $4.5907
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- Grummet Company is acquiring a new wood lathe with a cash purchase price of $80,000. The Wood Master Industries (the manufacturer) has agreed to accept $23,500 at the end of each of the next 4 years. Based on this deal, how much interest will Grummet pay over the life of the loan? A. $94,000 B. $80,000 C. $23,500 D. $14,000In order to build a new warehouse facility, the regional distributor for Valco Multi-position Valves borrowed $1.6 million at 10% per year interest. If the company repaid the loan in a lump sum amount after two years, what was (a) the amount of the payment, and (b) the amount of interest?General Computers Inc. purchased a computer server for $60,500. It paid 45.00% of the value as a down payment and received a loan for the balance at 9.00% compounded semi-annually. It made payments of $2,100.12 at the end of every quarter to settle the loan. a. How many payments are required to settle the loan? Round up to the next payment
- Grouper Excavating Inc. is purchasing a bulldozer. The equipment has a price of $90,500. The manufacturer has offered a payment plan that would allow Grouper to make 10 equal annual payments of $15,367.03, with the first payment due one year after the purchase. 1- How much total interest will Grouper pay on this payment plan? Total interest = 63,170 2- Grouper could borrow $90,500 from its bank to finance the purchase at an annual rate of 9%.Should Grouper borrow from the bank or use the manufacturer’s payment plan to pay for the equipment? Manufacturer's rate %?(b) The company is considering purchasing a new delivery truck for $1,200,000. The intention is to obtain a 5-year loan from their bank, at an interest rate of 9% per annum. Annual payments are expected to be made on the loan. Required:i. Calculate Micron Industries’ annual payment on this loan. ii. Prepare the 5-year Amortization Schedule for this loan, clearly showing the interest and principal payment annually.XYZ Company is building an addition (building and machinery) to its manufacturing plant to increase its production capacity. The cost of the addition is $1,230,000. Its lender is willing to make a loan to the company at 70% loan to value, for 20 years, payments made monthly, and at an interest rate of 5% APR. a. What is the total amount of monthly payments? b. What will be the total amount of interest paid on this loan? c. How much of the first monthly payment will be interest and how much of the last monthly payment will be interest?
- Sosa Excavating Inc. is purchasing a bulldozer. The equipment has a price of $100,000. The manufacturer has offered a payment plan that would allow Sosa to make 10 equal annual payments of $16,274.53, with the first payment due one year after the purchase. Instructions(a) How much total interest will Sosa pay on this payment plan?(b) Sosa could borrow $100,000 from its bank to finance the purchase at an annual rate of 9%. Should Sosa borrow from the bank or use the manufacturer’s payment plan to pay for the equipmentBlackstone Company purchased a new software system costing $35,000. To finance the purchase, Blackstone signed a contract agreeing to pay the cost over the next 8 years, with a payment due every six months; the first payment will be made six months from the date of purchase. Blackstone's usual interest rate is 10%. What is the amount of the payment required (rounded to the nearest dollar)? 's usual 096, What is the amount of the Select one: O a. 16,030 O b. 6,560 O c. 3,229 d. 2,575 e. None of the aboveGeneral 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 11
- Robinson Co. is interested in purchasing a new delivery vehicle so it can become a subcontractor with Amazon Logistics. The vehicle would cost $175,000 and generate delivery revenue of $35,000 for each of the next 6 years. If Robinson Co. purchases the vehicle, it will take a loan for $140,000. The terms of the loan stipulate that 3% annual interest would be charged and that the loan would be repaid in 6 equal end of year payments. At the end of the 6 years, the vehicle will have a salvage value of $10,000. The tax rate is 40%. Assuming that the vehicle is depreciated using MACRS (5-year property class) and that Robinson Co. uses an after-tax MARR of 9%, compute the PW and determine whether Robinson Co. should purchase the new business vehicle. Click here to access the TVM Factor Table calculator. Click here to access the MACRS-GDS Property Classes. Click here to access the MACRS-GDS percentages page. Click here to access the MACRS-GDS percentages for 27.5-year residential rental…Apple has purchased land for $500,000 for their new factory. They make a down payment of $100,000, and the remainder is financed at (15) percent compounded semi-annually with semi-annual payments over 4 years. Develop an Excel® table to illustrate the payment amounts and schedule for the loan, assuming payback follows a) Plan 1: Pay the accumulated interest at the end of each interest period and repay the principal at the end of the loan period. b) Plan 2: Make equal principal payments, plus interest on the unpaid balance at the end of the period. c) Plan 3: Make equal end-of-period payments. d) Plan 4: Make a single payment of principal and interest at the end of the loan period. e) A different plan: Pay off the principal in such a way that it is X, 1.5X, 2X, 2.5X... till the end of the last payment period. In addition, pay the accumulated interest at the end of each interest period.Contracting company plans to update its equipment so that its trucks are replaced after five years from now. The estimated cost required for so is ($ 200,000). The company plans to pay only (20%) from the amount directly, and borrow the rest. The company decided to deposits an annually uniform series during those five years to provide the amount to be paid directly. What is the amount of payment that annually paid? If the interest rate is (7%).