Assume that you will have a 10-year, $12,000 loan to repay when you graduate from college...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Assume that you will have a 10-year, $12,000 loan to repay when you graduate from college next month. The loan, plus 10 percent annual interest on the unpaid balance, is to be repaid in 10 annual installments of $1,953 each, beginning one year after you graduate. You have accepted a well-paying job and are considering an early settlement of the entire unpaid balance in just three years (immediately after making the third annual payment of $1,953). Prepare an amortization schedule showing how much money you will need to save to pay the entire unpaid balance of your loan three years after your graduation. (Round your answers to the nearest dollar amount. Enter all amounts as positive numbers.) Interest Period Annual Payment Annual Interest Expense @10% Reduction in Unpaid Unpaid Balance Balance Date of Graduation $ 12,000 Year 1 $ 1,953 Year 2 1,953 Year 3 1,953 Assume that you will have a 10-year, $12,000 loan to repay when you graduate from college next month. The loan, plus 10 percent annual interest on the unpaid balance, is to be repaid in 10 annual installments of $1,953 each, beginning one year after you graduate. You have accepted a well-paying job and are considering an early settlement of the entire unpaid balance in just three years (immediately after making the third annual payment of $1,953). Prepare an amortization schedule showing how much money you will need to save to pay the entire unpaid balance of your loan three years after your graduation. (Round your answers to the nearest dollar amount. Enter all amounts as positive numbers.) Interest Period Annual Payment Annual Interest Expense @10% Reduction in Unpaid Unpaid Balance Balance Date of Graduation $ 12,000 Year 1 $ 1,953 Year 2 1,953 Year 3 1,953
Expert Answer:
Posted Date:
Students also viewed these finance questions
-
At the intersection of Texas Avenue and University Drive, a yellow subcompact car with mass 950 kg traveling east on University collides with a red pickup truck with mass 1900 kg that is traveling...
-
A review of the ledger of Obi Company at December 31, 2010, produces the following data pertaining to the preparation of annual adjusting entries. 1. Prepaid Insurance $9,900. The company has...
-
What interest rate does the lessor use for discounting calculations associated with a lease?
-
Which form of organization provides the best experience base for those aspiring to be general managers?
-
Schank Marketing Research has just signed contracts to conduct studies for four clients. At present, three project managers are free for assignment to the tasks. Although all are capable of handling...
-
Find all solutions of cos 3x tan 2x = 0 on [0, 27). Select all that apply V X= 2 X = 3 V X = A V X= 6 V X= 11x 6 V X= O X= 5n 3 V X= 6 O X= 3
-
On January 1, Coldwater Company has a net book value of $2,300,000 as follows: 2,050 shares of preferred stock; par value $100 per share; cumulative, nonparticipating, nonvoting; call value $108 per...
-
lem 1: Use the limit definition of the derivative to find f'(x) for f(x) = 2x+x. Then find f'(1) and the equation of the tangent line to the graph of f(x) at x = 1.
-
Cost accounting provides management with accurate information about the cost of manufacturing a product. The type of cost accounting system a business uses depends on the nature of its manufacturing...
-
Discuss the potential for AI in any organisation (including your own). What are the immediate pitfalls and how can they be addressed
-
Definite integrals sometimes have the property that the integrand becomes infinite at one or both of the endpoints, but the integral itself is finite. In other words, limxa |(x)| = or limxa |(x)| = ,...
-
If n = 360 and (p-hat) = 0.35, construct a 90% confidence interval. Give your answers to three decimals < p
-
Question content area top Part 1 An electric vehicle company is debating whether to replace its original model, Model X, with a new model, Model Y, which would appeal to a younger audience. Whatever...
-
Marc Company assembles products from a group of interconnecting parts. The company produces some of the parts and buys some from outside vendors. The vendor for Part X has just increased its price by...
-
Fitch and Wall have been in partnership for many years sharing profits and losses in the ratio 5 : 3 respectively. The following was their balance sheet as at 31 December 2002. On 1 January 2003,...
-
The Unilever 2002 annual review stated: Total Shareholder Return (TSR) is a concept used to compare the performance of different companies stocks and shares over time. It combines share price...
-
On the Internet find the 2010 Transparency International Corruption Perception Index and determine the ranking of these countries. a. United States b. Japan c. Chad d. Iceland e. Denmark
Study smarter with the SolutionInn App