Question
Metro Construction received $60,000 in vendor financing at 10.5% compounded semiannually for the purchase of a loader. Semiannual payments of $10000 will pay off the
Metro Construction received $60,000 in vendor financing at 10.5% compounded semiannually for the purchase of a loader. Semiannual payments of $10000 will pay off the debt in 4 years, including $14,000.83 in Interest. Suppose that the loan permits an additional prepayment of principal on any scheduled payment date. Prepare an amonization schedule that reflects a prepayment of $5,000 with the third scheduled payment. How much interest is saved as a result of the prepayment? ( Round your answers to the nearest cent.)
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
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