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Author Question: Amortization tables are useful for each of the following reasons EXCEPT: A) determining the ... (Read 62 times)

Alainaaa8

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on: Jul 10, 2018
Amortization tables are useful for each of the following reasons EXCEPT:
 
  A) determining the principal balance due if the loan is being paid off early.
  B) determining how much of a total payment is interest and how much is principal for tax purposes.
  C) determining the regular periodic total payment.
  D) All of these are useful purposes of an amortization table.

Question 2

Your firm intends to finance the purchase of a new construction crane. The cost is 1,500,000. What is the size of the annual ordinary annuity payment if the loan is amortized over a ten-year period at a rate of 8.50?
 
  A) 228,611.56
  B) 127,500.00
  C) 3,391,475.16
  D) There is not enough information to answer this question.


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Loise Hard

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Reply #1 on: Jul 10, 2018
Answer to Question 1

Answer: D

Answer to Question 2

Answer: A
Explanation: A)
PMT = PV / = 1,500,000 / = 228,611.56.
MODE = END
INPUT 10 8.5 1,500,000 ? 0
KEY N I/Y PV PMT FV
CPT 228,611.56


Alainaaa8

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Reply #2 on: Jul 10, 2018
Thank you


Loise Hard

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Reply #3 on: Jul 10, 2018
No problemo


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