The interest rate on a $15,300 loan is 9.7% compounded semiannually. Semiannual payments will pay off the loan in nine years. (Donot round intermediate calculations. Round the PMT and final answers to 2 decimal places.)a. Calculate the interest component of Payment 12.$b. Calculate the principal component of Payment 5.Principalc. Calculate the interest paid in Year 8.Interest paidd. How much do Payments 5 to 8 inclusive reduce the principal balance?Principal reductionInterest

The sum borrowed to meet the specific personal and business funding requirements is regarded as a…

Answered: The interest rate on a $15,300 loan is…

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual interest rate of 6%, and payable in four months. How much interest will Marathon Peanuts owe at the end of four months? A. $2,600 B. $7,800 C. $137,800 D. $132,600
A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an annual interest rate of 11%. If 6 months have passed since note establishment, what would be the recorded interest figure at that time? A. $7,150 B. $65,000 C. $14,300 D. $2,383
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