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
Q. Explain horizontal analyses and using the financial results? The computation of dollar and or percentage changes from one year to the next in an item on financial statements

Q. Example of perpetual inventory procedure? The Perpetual inventory procedure Companies use perpetual inventory procedure in a range of business settings. In the past companie

procedure followed in government system of accounting in india

Concept of Conservatism: The concept of conservatism, also termed as the concept of prudence, is frequently stated as "anticipate no profit, give for all possible losses". It

The Company changed its process of accounting for pre-opening costs. These changes had no cash impact and the pro forma amounts accessible in the consolidated statement of income r


1. Carmen Santiago works for a number of businesses as a "consultant." She has helped design accounting systems, provided accounting services, and analyzed the financial stre

Stewart Company sold 180 units @ $320 each on October 31, 2012. Cash selling and administrative expenses were $15,000. The following information is also available:   The

Birch issued 200 shares of $12 par common stock in exchange for a piece of equipment with a current market value of $3,000.Whichof the following is not part of the journal entry

Q. What is accrual basis of accounting? In the following illustration, notice that every business transaction affects two or more accounts in the ledger. As well note that