Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

To help finance its start-up costs, a small business takes out a loan of R338 165,00 at an interest rate of 12% per year compounded

image text in transcribed

image text in transcribed

To help finance its start-up costs, a small business takes out a loan of R338 165,00 at an interest rate of 12% per year compounded quarterly. The loan is being amortised by means of equal payments of R22 730,00 at the end of every three months for five years. The first eight lines of the amortisation schedule are shown below: Quarter Outstanding principal at start of quarter 338 165,00 1 2 325 579,95 Interest due at Principal end of repaid Payment quarter during (simple) quarter 10144,95 22 730,00 12585,05 9767,40 22 730,00 12962,60 9378,5222730,00 13351,48 8977,98 22 730,00 13 752,02 22 730,00 B 8140,48 22 730,00 14589,52 7 702.79 22 730.00 15027 21 3 312 617,35 4 299 265.87 5 285513,85 6 271 349,27 7 256 759,75 8 241 732,54 7251,98 22 730,00 15478,02 Considering the amortisation schedule, the value of Bis 7 256 759,75 7 702.79 22 730,00 15027,21 00 241 732,54 7251,98 22 730,00 15 478,02 Considering the amortisation schedule, the value of Bis A R14 170.77 B. R14 164,58 CR13 993,98 D. R14 134.69. Reset Selection

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

blur-text-image

Step: 3

blur-text-image

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

Financial And Managerial Accounting

Authors: Nonso E Okpala

1st Edition

1634873904, 9781634873901

More Books

Students also viewed these Finance questions

Question

a) K=1 k+4 BK-1 k.

Answered: 1 week ago

Question

Write a program to check an input year is leap or not.

Answered: 1 week ago

Question

Write short notes on departmentation.

Answered: 1 week ago

Question

What are the factors affecting organisation structure?

Answered: 1 week ago

Question

What are the features of Management?

Answered: 1 week ago

Question

Briefly explain the advantages of 'Management by Objectives'

Answered: 1 week ago

Question

How should a consultant be selected?

Answered: 1 week ago

Question

Why is a consulting contract needed?

Answered: 1 week ago