| Cost of Asset | $48,000 | |
| Amount Financed | $48,000 | |
| Annual Interest Rate | 12% | |
| Installment loan term | 2 | years |
| Payments are made | monthly | 12 times per year |
| USE THE KIESO PRESENT VALUE TABLE ATTACHED | |
a. CALCULATE THE MONTLY PAYMENT ON THE NOTE PAYABLE.
b. CALCULATE THE TOTAL AMOUNT OF INTEREST EXPENSE TO BE PAID OVER THE ENTIRE LIFE OF THE LOAN
c. ASSUME THE COMPANY PAYS AN ADDITIONAL $100 PER MONTH TOWARDS PRINCIPAL. HOW MUCH INTEREST WILL THEY SAVE OVER THE LIFE of the loan.
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Table A 2 t Present Value of an Annuity of $1 per Period for n Periods: Equatin Financial Calculator Keys. TABLE Number Periods 0.9174 1,8594 8334 1.8060 17833 1.7591 2.9410 2.8839 2.8286 2775 2.7232 2.67302.6243 2.577 2.5313 0.9091 08929 0.70.8696 0.8621 0.8475 08333 0.8065 0.7813 0.7576 1.7355 16901 6467 6257 .6052 1.5656 1.5278 1.4568 1.39161.3315 2.4869 2401 2.3216 2.2832 2.2459 2.1743 21065 1.9913 9684 .7663 3.1699 3.0373 2.9137 2.8550 27982 2.6901 25887 2.4043 2.2410 20957 .79083.6018 3.433 3.3522 3.2743 3.1272 2.9906 2.7454 2.530 2.3452 0.9434 0.9346 0.9259 3.9020 3.8077 3.717 36299 3.5460 4.8534 4.7135 4.5797 4.4518 4.3295 42124 4.1002 3.9927 3.8897 5.7955 5.6014 5.4172 5.242 5.0757 4.917347665 4.6229 .4859 4.3553 4.1114 3.8887 37845 3.6847 3.4976 33255 3.205 2.7594 2.5342 .8681 4.5638 2883 41604 .0386 3.8115 3.6046 3.2423 2.930 2.6775 5.3349 4.96 4.6389 4.4873 .3436 4.076 3.832 3.4212 3.0758 2.7860 5.7590 5.328249 4.7716 4.6065 4.3030 4.0310 3.5655 3.1842 28681 9.4713 89826 53 8.1 7.7217 7.3601 7.0236 6.7101 .4177 6.1446 5.6502 5.2161 50188 4.8332 4.494 4.1925 36819 3.2689 2.9304 5.0330 5.5348 5.9952 6.7282 6.4720 6.2303 6.0021 5.7864 5.5824 53993 5 6.2098 6.8017 5.7466 6.24695, 7.3255 7.0197 6.5152 6.4951 5.937747 5233 5.0286 4.6560 327 3.7757 3.3351 2.9776 11.2551 10.5753 9540 9.3851 8.8633 .3838 7.9427 7.5361 7.1607 6.81376.194 5.6603 5.4206 5.1971 47932 4.4392 38514 33868 3.0133 12. 1337 4810.6350 99856 9.3936 8.8527 9.3577 7.9038 74869 7.1034 6.4235 5.8424 5.58315.3423 4.9095 4.532739124 3.4272 3.0404 7.3667 6.6282 60021 5.725 5.4675 5.0081 4.610 3.9616 3.4587 3.0609 13.8651 128493 1.9379 11.1184 10.3797 9.7122 9.1079 8595 8.06077.60 8109 61422 5.8474 5.5755 5.0916 4.6755 4.0013 3.4834 3.0764 10.3676 7.8869 7.497 7.1390 13.0037 12.1062 1.296 10.5631 9.8986 9.2950 14.7179 13.5777256 6523 083780.109 94466 8.8514 8.312678237 69740 6.2651 5.9542 5.6685 5.1624 4.7296 4.0333 3.5026 3.0882 8.0216 7.11966.329 .0472 54872223 4.7746 4.0591 3.5177 3.0971 8.2014 7.2497 6.4674 6.1280 5817 5273 4.8122 099 3.5294 3.1039 8.3649 736586.504 61982 58775 5.3162 4.8435 4.0967 3.5386 3.1090 18.0456 16.3514 14.8775 13.5903 12.4622 .469 10.5940 9.8181 9.1285 8.5136 74694 6.6231 6.2593 .9288 5.3527 48696 3.545 3.1129 15.5623 4.2919 3166 12.1657 1274 10.4773 9.7632 16.3983 4.9920 13.7535 12.6593 11.6896 10.8276 10.0591 17.2260 15.6785 4.3238 13.1339 12.0853 11.1581 10.3356 8.9501 18.8570 17.01 5.4150 4.0292 12.8212 11.7641 10.8355 10.0168 9.2922 8.6487 7.5620 6.6870 6.3125 5.97315.3837 499134.1212 35514 3.1158 8.7715 7.6446 6.7429 6.3587 6.0113 5.4099 4.9094 .130 3,5558 3.1180 8.8832 7.7184 6.7921 6.3988 6.0442 5.4321 4.9245 4.1371 3.5592 3.1197 21 243418.9139 16.9355 15.2470 13.7986 1250 11.4693 10.5289 9.70668.9847 7.7843 6.8351 6.4338 60726 5409 49371 4.1428 3.5619 3.1210 22.0232 19.5235 17.413 15.622 14.0939 12.7834 6536 10,6748 9.8226 9.070 7.843 6.8729 6464 6 5.4669 49476 4.1474 3.5640 3.1220 19.6604 7.6580 15.9369 14.451 13.1630 12.0416 11.0612 10.2007 20.4558 8.2922 16.4436 14.8568 13.4886 2.3034 11.2722 10.3711 9.4424 9.1609 .897 6 64906 6.1182 5.4804 49563 .1511 3.5656 3.1227 9.2372 7.9426 6.9352 6.5135 6.1364 5.4919 4.636 4.1542 3.5669 3.1233 9.3066 7.98446.97 6.5335 6.1520 5.5016 4967 4.1566 3.5679 3.1237 9.36968.0218 .930 65509 61656 5.5098 4.9747 4.1585 3.5687 3.1240 25.8077 22.3965 19.6004 17.2920 15.3725 13.7648 12.4090 112578 102737 9.4269 8.0552 7.0027 6.5660 6.1772 5.5168 9789 .10 3.5693 3.1242 22.7952 20.1210 .8768 15.9828 14.3752 13.0032 18258 10.8100 24.3164 21.2813 18.7641 6.6631 14.8981 13.4062 12.137 10.1161 25.0658 21.8444 19.1885 16.9837 15.1411 13590 12.7758410.1983 29.4086 24.9986 214872 18.6616 6.3742 14.49%2 12.977 11.6546 0.5668 9.64428.175 70700 6.6166 6.2153 5.5386 49915 4.1644 357083.1248 32.8347 27.3555 23.1148 19.7928 17159 15.0463 13.3317 11.9246 0.7574 9.7791 8.2438 7.1050 6.6418 6.2335 .548 96 659 3.5712 31250 36.0945 29.4902 24.5187 20.7200 17.774 15.4558 13.6055 12.1084 T0.8812 9.8628 8.2825 7.1232 6.6543 6.2421 5.5523 49986 4.1664 3.5714 3.1250 1961 31.4236 5.7298 21.4822 18.2559 5.7619 13.8007 12.2335 10.9617 99148 8304 7.137 6.6605 6.2463 5.554 4999541666 3.5714 3.1250 42.1472 33.148 26.7744 22.1086 18.6335 15.9905 139399 12.3186 11.0140 9.94718.310 7.1376 6.6636 6.2182 55549 499981666 3.5714 3.1250 1993 The Dryden Press All rigns reserved
