2 questions

You are told that a note has repayment terms of $1,500 per quarter for 5 years, with a stated interest rate of 4%. How much of the total payment is for principal, and how much is for interest? Calculate using (a) financial calculator or (b) Excel function PV. (Round answers to 2 decimal places, e.g. 5,275.25.) Total payment for principal \$ Total interest $ Determine if the total interest will be higher or lower than with an annual payment. The total interest will be than with an annual payment. Blossom Company owns a trade name that was purchased in an acquisition of Sunland Company. The trade name has a book value of $3,450,000, but according to IFRS, it must be assessed for impairment on an annual basis. To perform this impairment test, Blossom must estimate the fair value of the trade name (using IFRS 13). It has developed the following cash flow estimates related to the trade name based on internal information. Each cash flow estimate reflects Blossom's estimate of annual cash flows over the next 9 years. The trade name is assumed to have no residual value after the 9 years. (Assume the cash flows occur at the end of each year.) Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. (a) What is the estimated fair value of the trade name? Blossom determines that the appropriate discount rate for this estimation is 9%. (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round final answer to 0 decimal places, e.g. 5,275 .)