Hack Wellington Co. (HWC) plans to take out a five-year term loan from a commercial bank for $$3,500,000 at a stated interest rate of 9%. The contract of the term loan requires that the borrower makes payments toward the principal of $350,000 every year for four years, along with the interest on the balance remaining each year. The contract requires HWC to pay off the balance at the end of the fourth year. Calculate the total payments that HWC will make each year and complete the amortization table with equal annual reductions in principal. Interest Paid Total Payment Remaining Balance Year 1 Principal Paid $350,000 $350,000 $350,000 $350,000 2 3 4 5 $0 Loans, such as the one described in this case, in which the borrower is required to pay periodic payments for a certain number of years in the loan term and settle the balance amount at the termination of the loan are called Hack Wellington Co. is exploring options to borrow the loan amount from different lenders such as commercial banks, savings and loan associations, life insurance companies, pension funds, Small Business Administration (SBA), small business investment companies (SBICs), and industrial development authorities (IDAs). Which of the following lenders take some ownership in the company they lend to in the form of equity? OSmall business investment companies (SBICS) OSmall Business Administration (SBA) Hack Wellington Co. (HWC) plans to take out a five-year term loan from a commercial bank for $$3,500,000 at a stated interest rate of 9%. The contract of the term loan requires that the borrower makes payments toward the principal of $350,000 every year for four years, along with the interest on the balance remaining each year. The contract requires HWC to pay off the balance at the end of the fourth year. Calculate the total payments that HWC will make each year and complete the amortization table with equal annual reductions in principal. Interest Paid Total Payment Remaining Balance Year 1 Principal Paid $350,000 $350,000 $350,000 $350,000 2 3 4 5 $0 Loans, such as the one described in this case, in which the borrower is required to pay periodic payments for a certain number of years in the loan term and settle the balance amount at the termination of the loan are called Hack Wellington Co. is exploring options to borrow the loan amount from different lenders such as commercial banks, savings and loan associations, life insurance companies, pension funds, Small Business Administration (SBA), small business investment companies (SBICs), and industrial development authorities (IDAs). Which of the following lenders take some ownership in the company they lend to in the form of equity? OSmall business investment companies (SBICS) OSmall Business Administration (SBA)
