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
the Dwyer corporation incurred costs of 114000 in purchasing a process which it eventually had patented. The patent was issued on July 20x1. To secure the patent, an additional 6

061689 bussines accounting and you All i need detail how to do it i watch video but im not understanding if anybody have more specific explanation details

Q. Database management system - accounting perspective? A database management system stores related data-such like monthly sales data products, salespersons, customers and sale

Q. What is FOB shipping point? FOB shipping point signifies free on board at shipping point. The buyer acquires all transportation costs after the merchandise has been loaded o

“Ledger is said to be the principal book entry and the transactions can even be directly entered into the ledger account.”

Q. Explain about Money measurement concept? Money measurement concept. Economic activity is primarily recorded and reported in a common financial unit of measure the dollar in

Q. What do you mean by Inventory turnover? Inventory turnover -- a ratio which indicates amount of inventory a company uses tosupport a given level of sales. Formula is: Invent


Q. Valuation of ending inventory? First a merchandising company should be sure that it has properly valued its ending inventory. If the resulting in an ending inventory is over

Q. Explain Vertical analysis? Vertical analysis demonstrates the percentage that each item in a financial statement is of some significant total such as total assets or sales.