Calculate the total interest, Accounting Basics

Question:

You have decided to borrow $20,000 so that you can consolidate the loans you currently have with other lenders. You have agreed to repay the loan in 8 equal semi-annual instalments over the next 4 years with the first payment beginning 6 months from now. The bank that is lending you the money is going to charge you a rate of 11% per annum paid semi- annually.

Based on this information answer the following questions:

a) What is the semi-annual payment you will need to make?

b) What is the total interest you will have paid on the loan?

c) Each payment you make to the bank consists partly of interest and partly principal. How much of each are you repaying when you make your 4th payment?

d) What is the total amount you will have paid to the bank?

Posted Date: 2/16/2013 5:11:57 AM | Location : United States







Related Discussions:- Calculate the total interest, Assignment Help, Ask Question on Calculate the total interest, Get Answer, Expert's Help, Calculate the total interest Discussions

Write discussion on Calculate the total interest
Your posts are moderated
Related Questions
1.  What are financial accounting, management accounting, and finance? What are their similarities and differences? 2. What information does a balance sheet provide? How do acco

when youre using accounting software why would you use hot keys and shortcuts a.to quickly access commands b.to input data for you c.to start the program d.to write checks


Q. Procedure of recording business transactions? The raw information of accounting is the business transactions. We documented the transactions in section 1 as increases or dec

Q. Show Recording changes in dividends? Recording changes in dividends ever since dividends decrease retained earnings increases appear on the left side of the Dividends accoun


International Capital Budgeting Question 1. How does international capital budgeting differ from domestic capital budgeting? Many firms, when assessing international proj

A time of 12 consecutive months used by an organization to account for and report the results of its operations.

The two fundamental sources of equity in a company are stockholders and creditors their combined interests are called total equities. To discover the equity ratio divide stockholde

These questions are based on the following information and should be viewed as independent situations. Popper Co. acquired 80% of the common stock of Cocker Co. on January 1, 200