Purchase Solution

Amortization Schedule

Not what you're looking for?

Ask Custom Question

P3-32. You are planning to purchase a building for $40,000, and you have $10,000 to apply as a down payment. You may borrow the remainder under the following terms: a 10-year loan with semiannual repayments and a stated interest rate of 6 percent. You intend to make $6,000 payments, applying the excess over your required payment to the reduction of the principal balance.

a. Given these terms, how long (in years) will it take you to fully repay your loan?

b. What will be your total interest cost?

c. What would your interest cost be if you made no prepayments and repaid your loan by
strictly adhering to the terms of the loan?

Purchase this Solution
Solution Summary

This solution provides a detailed step by step explanation of the given finance problem.

Purchase this Solution
Free BrainMass Quizzes
Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.

Business Processes

This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.

IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

View More Free Quizzes
Related BrainMass Solutions

  • Amortization Schedule for Two Loans

    563531 Amortization Schedule for Two Loans A) Prepare the two loan amortization schedules based on the terms below. The first amortization schedule should reflect equal annual payments.

  • Accounting for franchise patents and trade name

    of $5,870 (Schedule 1) $52,830 Patent, net of accumulated amortization of $1,700 (Schedule 2) $11,900 Trademark, net of accumulated amortization of $5,840 (Schedule 3) $34,320 Total intangible assets

  • Franchise Patents and Trade Name Accounting

    of $5,870 (Schedule 1) $52,830 Patent, net of accumulated amortization of $1,700 (Schedule 2) $11,900 Trademark, net of accumulated amortization of $5,840 (Schedule 3) $34,320 Total intangible assets

  • 3 Amortization Schedules

    Then prepare a loan amortization schedule in Euros for the loan amount converted to US$. 1 US$ = 0.7849 Euro 1 Euro = 1.2740 US$ Amortization Schedule loan amortization schedule in Euro G = E * F I= G *

  • Entries for Bond Transactions Aumont Company

    The entries are then created by pointing at the relevant amount in the amortization schedule. This is a template that you can now use for any bond problem. The journal entries are based on the bond amortization schedule.

  • Amortization Schedule for bond interest and amortization

    Schedule for bond interest and discount amortization.

  • Crystal Corp bond amortization effective interest SL method

    Required Prepare an amortization schedule that determines interest at the effective interest rate. Prepare an amortization schedule by the straight-line method.

  • Bond price, discount, amortization schedule & journal entries

    594835 Bond price, discount, amortization schedule & journal entries For working capital your company has issued $1,500,000 in new bonds.

  • Amortization Schedule for a $25,000 Loan

    163923 Amortization Schedule for a $25,000 Loan Amortization schedule a. Set up an amortization schedule for a $25,000 loan to be repaid in equal installments at the end of each of the next 3 years.

  • Loan amortization schedule

    50348 Loan amortization schedule problem Consider a 4-year amortizing loan. You borrow $10,000 initially, and repay it in four equal annual year-end payments. a. Fill in the following Loan amortization schedule b.

View More Related Solutions