Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Apr 03, 2024

A company borrowed $ 10 million to buy copying machines at 8% interest rate. The firm wants to repay the loan by making equal annual

A company borrowed $ 10 million to buy copying machines at 8% interest rate. The firm wants to repay the loan by making equal annual payments over 10 years.

a) find the annual payments the company has to make

b) Out of the annual payment, show how much is the repayment of principal and how much is interest payment in 2 years.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Loan Payment Calculations We can solve this problem using the Loan Payment Formula LPM for equal ann... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Contemporary Business Mathematics with Canadian Applications

Authors: S. A. Hummelbrunner, Kelly Halliday, K. Suzanne Coombs

10th edition

133052311, 978-0133052312

More Books

Students also viewed these Finance questions

Question

★★★★★

The gusset plate is subjected to the forces of four members. Determine the force in member B and its proper orientation θ for equilibrium. The forces are concurrent at point O. Units Used: kN =...

Answered: 1 week ago

Question

★★★★★

Find all a and b such that the two curves given by intersect at only one point and have a common tangent line and equal curvature at that point. Sketch a graph for each set of values of a and b. y =...

Answered: 1 week ago

Question

★★★★★

Bill has just returned from a duck hunting trip. He brought home eight ducks. Bill s friend, John, disapproves of duck hunting, and to discourage Bill from further hunting, John presented him with...

Answered: 1 week ago

Question

★★★★★

For the non-seasonal frequencies, use $g \operatorname{lm}()$ to fit the additive exponential model \[ E\left(|\hat{Y}(\omega)|^{2}ight)=\beta_{0}+\beta_{1} \exp \left(-|2 \pi \lambda \omega|^{1 /...

Answered: 1 week ago

Question

★★★★★

Imagine that the storage system is now configured to contain two 40 GB disks in a RAID 0 array; that is, the data is striped in blocks of 8 KB equally across the two disks with no redundancy. a. How...

Answered: 1 week ago

Question

★★★★★

Why is international marketing important to most firms? What are motivations for expanding globally? LO.1

Answered: 1 week ago

Question

★★★★★

Why are the standardized Pearson residuals generally used instead of the Pearson residuals?

Answered: 1 week ago

Question

★★★★★

Cash flow profiles over a three-year period are provided here for three well-known companies: Echo star Communications, Wal-Mart, and US Airways. Link each profile to one of the firms, explain what...

Answered: 1 week ago

Question

★★★★★

Question 9 7 of 1 0 0 Which security model addresses integrity through well - formed transactions and maintaining internal and external consistency? Biba Clark - Wilson Graham Denning Chinese Wall

Answered: 1 week ago

Question

★★★★★

The December 31, 2015, balance sheet of the GAB LLP reads as follows: Capital is not a material income-producing factor for the LLP. Gina is an active (general) partner and owner of a 25% interest in...

Answered: 1 week ago

Question

★★★★★

Evaluate the indefinite integral. (Remember to use absolute values where appropriate. Use C for the constant of integration.) dX 12x 11n(12x) +C X Need Help

Answered: 1 week ago

Question

★★★★★

Oil at 24 gpm and 1200 psi enters the low-pressure inlet of a 4:1 Racine pressure intensifier. Find the discharge flow rate and pressure. Problem 5 Oil at 155F and 2250 psi is flowing through a...

Answered: 1 week ago

Question

★★★★★

What causes noise: Environment and people; body language; language (generations, style, slang); Regional, National, International; gender; access to information (myopic); levels of experience; number...

Answered: 1 week ago

Question

★★★★★

An ABDE metal pipe is kept in balance by a DF cable as well as by two ball joints in A and E. A load of 800N (vertical) is applied in C. a) What is the moment of force associated with the load of 800...

Answered: 1 week ago

Question

★★★★★

Q1. Gourmet has PKR150 million in sales revenue with PKR90 million in cost of goods sold. It has selling and administrative expenses of PKR10, pays annual taxes in the amount of PKR10 and has...

Answered: 1 week ago

Question

★★★★★

Imagine you head a large agency such as the Department of Education (DoE). Based on your experience with the CITI certification process and your class readings, outline a protocol for approving...

Answered: 1 week ago

Question

★★★★★

Check my work 2 MC algo 5-6 Calculating Future Values Today, your dream car costs $64,400. You feel that the price of the car will Increase at an annual rate 2.3 percent. If you plan to wait 3 years...

Answered: 1 week ago

Question

★★★★★

Let X be a random variable taking on values a1, a2, . . . , pr with probabilities p1, p2, . . . , pr and with E(X) = μ. Define the spread of X as follows: This, like the standard deviation, is a...

Answered: 1 week ago

Question

★★★★★

At what nominal rate of interest will money triple itself in 9 years and 2 months if compounded monthly?

Answered: 1 week ago

Question

★★★★★

The annual interest on a bond is 4 1/2% of its face value and amounts to $225. What is the face value of the bond?

Answered: 1 week ago

Question

★★★★★

At what rate of interest must a principal of $1545 be invested to earn interest of $58.93 in 150 days?

Answered: 1 week ago

Question

★★★★★

A population consists of the following five values: 2, 2, 4, 4, and 8. a. List all samples of size 2, and compute the mean of each sample. b. Compute the mean of the distribution of sample means and...

Answered: 1 week ago

Question

★★★★★

A population consists of the following five values: 12, 12, 14, 15, and 20. a. List all samples of size 3, and compute the mean of each sample. b. Compute the mean of the distribution of sample means...

Answered: 1 week ago

Question

★★★★★

Listed next are the 27 Nationwide Insurance agents in the Toledo, Ohio, metropolitan area. The agents are identified by numbering them 00 through 26. We would like to estimate the mean number of...

Answered: 1 week ago

Previous Question Next Question