Calculate the total interest, Accounting Basics

Assignment Help:

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?


Related Discussions:- Calculate the total interest

What is investment banking, Investment banking is a is an instrument which ...

Investment banking is a is an instrument which is used by the financial organization to take a improved investment decision like issuing IPO stocks bond etc.

Tips to keep in mind while making financial statements, Tips to be keep in ...

Tips to be keep in mind while preparing the Financial Statements : 1. Objects given in the trial balance must be revealed only once as it is assumed that they are already adjust

Sales discounts and sales returns, Q. Sales discounts and Sales returns? ...

Q. Sales discounts and Sales returns? Sales discounts arise when the seller tenders the buyer a cash discount of 1 percent to 3 percent to induce early payment of an amount due

What is t-account, Q. What is T-account? To exemplify recording the inc...

Q. What is T-account? To exemplify recording the increases and decreases in an account texts use the T-account which appear like a capital letter T. The name of the account suc

Capital, Capital In addition to borrowing from banks and additional sou...

Capital In addition to borrowing from banks and additional sources, all companies obtain finance from their owners. This money is usually accessible for the life of the busines

Principal x Rate x Time, 10,000 dollar loan at a Maturity of 3 months, an 8...

10,000 dollar loan at a Maturity of 3 months, an 8% interest rate

Trade, 1. Whate are the challenges faced in trade and solutions those probl...

1. Whate are the challenges faced in trade and solutions those problems?

Cost accounting, DEFINITION OF COST ACCOUNTING DEFINITION:  as said by ...

DEFINITION OF COST ACCOUNTING DEFINITION:  as said by the Institute of Cost and Works Accountants (ICWA), London, Cost accounting is " the method of accounting for costs from t

Birch issued 200 shares of $12 par common stock, Birch issued 200 shares of...

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

Books of original entry, how is withdrawaL OF goods by owner for personal u...

how is withdrawaL OF goods by owner for personal use treated in the books

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd