Pro and cons of this type A Tale of Two Loans HANDOUT XLSX 46 KB Cash Outlow Teline PROS CONS TO BE SUBMITTED AS REFLECTION PAPER OPTION 2 INSTALLMENT LOAN NOTE Ama interest rate of be divided by 12 to arrive rate for each individual payment La Ralance Mostly Rate 0 5 24 0 5 Interest 500A 106 Chow 8 605 0 8 600 64 66 648 606 64 Updated Loan Istance 91 0116 Toitel pad Open Excel PROS CONSE TO BE SUBMITTED AN REFLECTION PAPER A Tale of Two Loans HANDOUT XLSX 46 KB SITUATION A TALE OF TWO LOANS Your company has decided to purchase a new piece of equipment This p ofuit will cost $100 000 and you have decided to face the equipment rather than pay for it out of cash You have two options available for this financing 1) Issue individual bands that total $100,000 These bonds would have to be repard at the end of the year Additionally, Interest of 6 would be incurred payable in June and December 2) A S100,000 tonaliniament loan from a bank Mewly payments of S 64 w e required, which are comedofi l and interest, bearing an interest rate of 6 REQUIRED Tetermine the interest and principal payments each month under the two different financie OPTION 2 INSTALLMENT LOAN (NOTE Annual interest rate of ach individual payment) must be divided by 17 to arrive at March Sept Loan Balance 100,000 91 893 36 C 0 5 OS 0 5N 0 5 0 5 3 Monthly Rate 0 5 487 17 487 17 457 17 487 17 487 17 5 Interest 487 17 500 00 A 487 17 487 17 1,119 47 1,11947 8,106 64 B Principal 119 47 311947 D ,119 47 8 606 64 R606 64 8,606 64 8,606 64 8,606 66 8,606 64 8 606 64 19 Cash Outflow 2 Updated 43 Loan Balance 91,8936 100K B Tot interest BATIONI A TALE OF TWO LOANS a company has decided to purchase a new piece of equipment This piece of equipment will cost $100,000 and have two options available for this financing 1) Issue individual bonds that total $100,000 These bonds would have to be repaid at the end of the year Additionally, Interest of 6 would be incurred, payable in lume and December 2) A $100 000 traditional installment loan from a bank Monthly payments of SR 0 06 64 would be required, which are comprised of principal and interest, bearing an annual interest rate of MRER Prisimine the interest and principal payments each month under the two different financing options 1 SITUATION A TALE OF TWO LOANS 3 Your company has decided to purchase a new piece of e ent This piece of equipment will cost $100 000 and you have decided to finance the rather than pay for it out of cash You have two options available for this financing 1) l e individual bonds that total $100 000 These bonds would have to be repaid at the end of the year Additionally, interest of would be incurred, payable in June and December 2) A $100 000 traditional installment loan from a band Monthly payments of S w e d , which we comprised of principal and interesting interest rate of 11 REQUIRED Determine the interest and principal payments each month under the two different financing options 13 OPTION 1) BONDS March Sept 100 10000 100 000 100 000 100 000 100,000 10000 100 000 100 000 18 Interest 20 Cash Outllow PROS CONS TO BE SUBMITTED AS REFLECTION PAPER 2 OPTION 2 INSTALLMENT LOAN (NOTE Annual interest rate of must be divided by 12 to vie a monthly rate for each individual payment) Apr Aug March 91c Sept Dec 31 Loan Balance 100,000 11 Monthly Rate ON OSN 0 5 0 5 OS 500 00 A 487 17 487 12 487 17 487 17 187 17 6712 487 12 187 17 37 Principal ,10664 B 119 47 D 8119 47 R119 47 8,119 41 R 119 47 8,1191 30 Cash Quetion 606 64 606 66 RECE 0664 606 64 42 Updated 41 Loan Balance 91 36 C 100K B C D Total interest A Tale of Two Loans HANDOUT XLSX 46 KB Cash Outlow Teline PROS CONS TO BE SUBMITTED AS REFLECTION PAPER OPTION 2 INSTALLMENT LOAN NOTE Ama interest rate of be divided by 12 to arrive rate for each individual payment La Ralance Mostly Rate 0 5 24 0 5 Interest 500A 106 Chow 8 605 0 8 600 64 66 648 606 64 Updated Loan Istance 91 0116 Toitel pad Open Excel PROS CONSE TO BE SUBMITTED AN REFLECTION PAPER A Tale of Two Loans HANDOUT XLSX 46 KB SITUATION A TALE OF TWO LOANS Your company has decided to purchase a new piece of equipment This p ofuit will cost $100 000 and you have decided to face the equipment rather than pay for it out of cash You have two options available for this financing 1) Issue individual bands that total $100,000 These bonds would have to be repard at the end of the year Additionally, Interest of 6 would be incurred payable in June and December 2) A S100,000 tonaliniament loan from a bank Mewly payments of S 64 w e required, which are comedofi l and interest, bearing an interest rate of 6 REQUIRED Tetermine the interest and principal payments each month under the two different financie OPTION 2 INSTALLMENT LOAN (NOTE Annual interest rate of ach individual payment) must be divided by 17 to arrive at March Sept Loan Balance 100,000 91 893 36 C 0 5 OS 0 5N 0 5 0 5 3 Monthly Rate 0 5 487 17 487 17 457 17 487 17 487 17 5 Interest 487 17 500 00 A 487 17 487 17 1,119 47 1,11947 8,106 64 B Principal 119 47 311947 D ,119 47 8 606 64 R606 64 8,606 64 8,606 64 8,606 66 8,606 64 8 606 64 19 Cash Outflow 2 Updated 43 Loan Balance 91,8936 100K B Tot interest BATIONI A TALE OF TWO LOANS a company has decided to purchase a new piece of equipment This piece of equipment will cost $100,000 and have two options available for this financing 1) Issue individual bonds that total $100,000 These bonds would have to be repaid at the end of the year Additionally, Interest of 6 would be incurred, payable in lume and December 2) A $100 000 traditional installment loan from a bank Monthly payments of SR 0 06 64 would be required, which are comprised of principal and interest, bearing an annual interest rate of MRER Prisimine the interest and principal payments each month under the two different financing options 1 SITUATION A TALE OF TWO LOANS 3 Your company has decided to purchase a new piece of e ent This piece of equipment will cost $100 000 and you have decided to finance the rather than pay for it out of cash You have two options available for this financing 1) l e individual bonds that total $100 000 These bonds would have to be repaid at the end of the year Additionally, interest of would be incurred, payable in June and December 2) A $100 000 traditional installment loan from a band Monthly payments of S w e d , which we comprised of principal and interesting interest rate of 11 REQUIRED Determine the interest and principal payments each month under the two different financing options 13 OPTION 1) BONDS March Sept 100 10000 100 000 100 000 100 000 100,000 10000 100 000 100 000 18 Interest 20 Cash Outllow PROS CONS TO BE SUBMITTED AS REFLECTION PAPER 2 OPTION 2 INSTALLMENT LOAN (NOTE Annual interest rate of must be divided by 12 to vie a monthly rate for each individual payment) Apr Aug March 91c Sept Dec 31 Loan Balance 100,000 11 Monthly Rate ON OSN 0 5 0 5 OS 500 00 A 487 17 487 12 487 17 487 17 187 17 6712 487 12 187 17 37 Principal ,10664 B 119 47 D 8119 47 R119 47 8,119 41 R 119 47 8,1191 30 Cash Quetion 606 64 606 66 RECE 0664 606 64 42 Updated 41 Loan Balance 91 36 C 100K B C D Total interest

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Pro and cons of this type A Tale of Two Loans   HANDOUT XLSX   46 KB Cash Outlow Teline  PROS CONS  TO BE SUBMITTED AS REFLECTION PAPER OPTION 2  INSTALLMENT LOAN NOTE  Ama interest rate of be divided by 12 to arrive rate for each individual payment La Ralance Mostly Rate 0 5  24 0 5  Interest 500A 106 Chow 8 605  0 8  600 64 66 648 606 64 Updated Loan Istance 91 0116 Toitel pad Open Excel PROS CONSE TO BE SUBMITTED AN REFLECTION PAPER A Tale of Two Loans   HANDOUT XLSX   46 KB SITUATION A TALE OF TWO LOANS Your company has decided to purchase a new piece of equipment  This p ofuit will cost $100 000 and you have decided to face the equipment rather than pay for it out of cash You have two options available for this financing 1) Issue individual bands that total $100,000  These bonds would have to be repard at the end of the year  Additionally, Interest of 6  would be incurred  payable in June and December 2) A S100,000 tonaliniament loan from a bank Mewly payments of S  64 w e required, which are comedofi l and interest, bearing an interest rate of 6 REQUIRED Tetermine the interest and principal payments each month under the two different financie OPTION 2  INSTALLMENT LOAN (NOTE  Annual interest rate of ach individual payment) must be divided by 17 to arrive at March Sept Loan Balance 100,000 91 893 36 C 0 5  OS 0 5N 0 5  0 5 3 Monthly Rate 0 5  487 17 487 17 457 17 487 17 487 17 5 Interest 487 17 500 00 A 487 17 487 17 1,119 47 1,11947   8,106 64 B Principal 119 47 311947 D ,119 47 8 606 64 R606 64 8,606 64 8,606 64 8,606 66 8,606 64 8 606 64 19 Cash Outflow 2 Updated 43 Loan Balance 91,8936   100K B Tot interest BATIONI A TALE OF TWO LOANS a company has decided to purchase a new piece of equipment  This piece of equipment will cost $100,000 and have two options available for this financing 1) Issue individual bonds that total $100,000  These bonds would have to be repaid at the end of the year  Additionally, Interest of 6  would be incurred, payable in lume and December 2) A $100 000 traditional installment loan from a bank  Monthly payments of SR 0 06 64 would be required, which are comprised of principal and interest, bearing an annual interest rate of MRER  Prisimine the interest and principal payments each month under the two different financing options 1 SITUATION  A TALE OF TWO LOANS 3 Your company has decided to purchase a new piece of e ent  This piece of equipment will cost $100 000 and you have decided to finance the rather than pay for it out of cash You have two options available for this financing 1) l e individual bonds that total $100 000  These bonds would have to be repaid at the end of the year  Additionally, interest of would be incurred, payable in June and December 2) A $100 000 traditional installment loan from a band Monthly payments of S w e d , which we comprised of principal and interesting interest rate of 11 REQUIRED  Determine the interest and principal payments each month under the two different financing options  13 OPTION 1) BONDS March Sept 100 10000 100 000 100 000 100 000 100,000 10000 100 000 100 000 18 Interest 20 Cash Outllow PROS CONS TO BE SUBMITTED AS REFLECTION PAPER 2 OPTION 2  INSTALLMENT LOAN (NOTE  Annual interest rate of must be divided by 12 to vie a monthly rate for each individual payment) Apr Aug March 91c Sept  Dec 31 Loan Balance 100,000 11 Monthly Rate ON OSN 0 5  0 5 OS 500 00 A 487 17 487 12 487 17 487 17 187 17 6712 487 12 187 17 37 Principal ,10664 B 119 47 D 8119 47 R119 47 8,119 41 R 119 47 8,1191 30 Cash Quetion 606 64 606 66 RECE 0664 606 64 42 Updated 41 Loan Balance 91  36 C 100K B  C D Total interest A Tale of Two Loans   HANDOUT XLSX   46 KB Cash Outlow Teline  PROS CONS  TO BE SUBMITTED AS REFLECTION PAPER OPTION 2  INSTALLMENT LOAN NOTE  Ama interest rate of be divided by 12 to arrive rate for each individual payment La Ralance Mostly Rate 0 5  24 0 5  Interest 500A 106 Chow 8 605  0 8  600 64 66 648 606 64 Updated Loan Istance 91 0116 Toitel pad Open Excel PROS CONSE TO BE SUBMITTED AN REFLECTION PAPER A Tale of Two Loans   HANDOUT XLSX   46 KB SITUATION A TALE OF TWO LOANS Your company has decided to purchase a new piece of equipment  This p ofuit will cost $100 000 and you have decided to face the equipment rather than pay for it out of cash You have two options available for this financing 1) Issue individual bands that total $100,000  These bonds would have to be repard at the end of the year  Additionally, Interest of 6  would be incurred  payable in June and December 2) A S100,000 tonaliniament loan from a bank Mewly payments of S  64 w e required, which are comedofi l and interest, bearing an interest rate of 6 REQUIRED Tetermine the interest and principal payments each month under the two different financie OPTION 2  INSTALLMENT LOAN (NOTE  Annual interest rate of ach individual payment) must be divided by 17 to arrive at March Sept Loan Balance 100,000 91 893 36 C 0 5  OS 0 5N 0 5  0 5 3 Monthly Rate 0 5  487 17 487 17 457 17 487 17 487 17 5 Interest 487 17 500 00 A 487 17 487 17 1,119 47 1,11947   8,106 64 B Principal 119 47 311947 D ,119 47 8 606 64 R606 64 8,606 64 8,606 64 8,606 66 8,606 64 8 606 64 19 Cash Outflow 2 Updated 43 Loan Balance 91,8936   100K B Tot interest BATIONI A TALE OF TWO LOANS a company has decided to purchase a new piece of equipment  This piece of equipment will cost $100,000 and have two options available for this financing 1) Issue individual bonds that total $100,000  These bonds would have to be repaid at the end of the year  Additionally, Interest of 6  would be incurred, payable in lume and December 2) A $100 000 traditional installment loan from a bank  Monthly payments of SR 0 06 64 would be required, which are comprised of principal and interest, bearing an annual interest rate of MRER  Prisimine the interest and principal payments each month under the two different financing options 1 SITUATION  A TALE OF TWO LOANS 3 Your company has decided to purchase a new piece of e ent  This piece of equipment will cost $100 000 and you have decided to finance the rather than pay for it out of cash You have two options available for this financing 1) l e individual bonds that total $100 000  These bonds would have to be repaid at the end of the year  Additionally, interest of would be incurred, payable in June and December 2) A $100 000 traditional installment loan from a band Monthly payments of S w e d , which we comprised of principal and interesting interest rate of 11 REQUIRED  Determine the interest and principal payments each month under the two different financing options  13 OPTION 1) BONDS March Sept 100 10000 100 000 100 000 100 000 100,000 10000 100 000 100 000 18 Interest 20 Cash Outllow PROS CONS TO BE SUBMITTED AS REFLECTION PAPER 2 OPTION 2  INSTALLMENT LOAN (NOTE  Annual interest rate of must be divided by 12 to vie a monthly rate for each individual payment) Apr Aug March 91c Sept  Dec 31 Loan Balance 100,000 11 Monthly Rate ON OSN 0 5  0 5 OS 500 00 A 487 17 487 12 487 17 487 17 187 17 6712 487 12 187 17 37 Principal ,10664 B 119 47 D 8119 47 R119 47 8,119 41 R 119 47 8,1191 30 Cash Quetion 606 64 606 66 RECE 0664 606 64 42 Updated 41 Loan Balance 91  36 C 100K B  C D Total interest

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Pro and cons of this type A Tale of Two Loans - HANDOUT XLSX - 46 KB Cash Outlow Teline. PROS CONS: TO BE SUBMITTED

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