50.1K

Verified Solution

Link Copied!

120 Months A company has decided to purchase equipment, needing to borrow $100,000 from its local bank to make-the purchase. The bank gives the company two options: (0) 60 -month instaliment note with 4% interest of (b) 120 -month installiment note with 8% interest Lenders often charge a higher interest rate for longer-term loans to compensate for additional risk of borrowing lending for a longer time period. Required: Complete this question by entering your answers in the tabs below. What is the monthly payment amount for each option? (Round your answer to 2 decimal places.) A company has decided to purchase equipment, needing to borrow $100,000 from its local bank to make-the purchase. The bank gives the company two options: (a) 60 -month instaliment note with 4% interest or (b) 120 -month instaliment note with 8% interest. Lenders often charge a higher interest rate for longer-term loans to compensate for additional risk of borrowing lending for a longer tenders period Required: Complete this question by entering your answers in the tabs below. What is the total amount of interest paid over the life of the note for each option? A company has decided to purchase equipment, needing to borrow $100,000 from its local bank to make the purchase. The bank gives the company two options: (a) 60 -month installment note with 4% interest or (b) 120 -month instaliment note with 8% interest Lenders often charge a higher interest rate for longer-term loans to compensate for additional risk of borrowing lending for a longer time period. Required: Complete this question by entering your answers in the tabs below. Does the interest portion of each payment increase or decrease over time? A company has decided to purchase equipment, needing to borrow $100.000 from its local bank to make the purchase. The bank gives the company two options: (a) 60 -month installment note with 4% interest or (b) 120 -month installment note with 8% interest, Lenders often charge a higher interest rate for longer-term loans to compensate for additional risk of borrowing lending for a longet time period. Required: Complete this question by entering your answers in the tabs below. Record $100,000 cash recelved from the issuance of the 120 -month installment note with 8% interest. A company has decided to purchase equipment, needing to borrow $100,000 from its local bank to make the purchase, The bank gives the company two options: (a) 60 -month installment note with 4% interest or (b) 120 -month instaliment note with 8% interest. Lenders often charge a higher interest rate for longer-term loans to compensate for additional risk of borrowing lending for a longer time period. Required: Complete this question by entering your answers in the tabs below. Record the first monthly payment of the 120 -month installment note with 8% interest A company has decided to purchase equipment, needing to borrow $100.000 from its local bank to make the purchase. The bank gives the company two options: (a) 60 -month installment note with 4% interest or (b) 120 -month installment note with 8% interest. Lenders often charge a higher interest rate for longer-term loans to compensate for additional risk of borrowing lending for a longer time period. Required: Complete this question by entering your answers in the tabs below. Select the options to display a 120 -month installment note with 12% interest. How much of the principal amount is due after the 60th payment? (Hint: Scroll down the Monthly Payment Schedule) 120 Months A company has decided to purchase equipment, needing to borrow $100,000 from its local bank to make-the purchase. The bank gives the company two options: (0) 60 -month instaliment note with 4% interest of (b) 120 -month installiment note with 8% interest Lenders often charge a higher interest rate for longer-term loans to compensate for additional risk of borrowing lending for a longer time period. Required: Complete this question by entering your answers in the tabs below. What is the monthly payment amount for each option? (Round your answer to 2 decimal places.) A company has decided to purchase equipment, needing to borrow $100,000 from its local bank to make-the purchase. The bank gives the company two options: (a) 60 -month instaliment note with 4% interest or (b) 120 -month instaliment note with 8% interest. Lenders often charge a higher interest rate for longer-term loans to compensate for additional risk of borrowing lending for a longer tenders period Required: Complete this question by entering your answers in the tabs below. What is the total amount of interest paid over the life of the note for each option? A company has decided to purchase equipment, needing to borrow $100,000 from its local bank to make the purchase. The bank gives the company two options: (a) 60 -month installment note with 4% interest or (b) 120 -month instaliment note with 8% interest Lenders often charge a higher interest rate for longer-term loans to compensate for additional risk of borrowing lending for a longer time period. Required: Complete this question by entering your answers in the tabs below. Does the interest portion of each payment increase or decrease over time? A company has decided to purchase equipment, needing to borrow $100.000 from its local bank to make the purchase. The bank gives the company two options: (a) 60 -month installment note with 4% interest or (b) 120 -month installment note with 8% interest, Lenders often charge a higher interest rate for longer-term loans to compensate for additional risk of borrowing lending for a longet time period. Required: Complete this question by entering your answers in the tabs below. Record $100,000 cash recelved from the issuance of the 120 -month installment note with 8% interest. A company has decided to purchase equipment, needing to borrow $100,000 from its local bank to make the purchase, The bank gives the company two options: (a) 60 -month installment note with 4% interest or (b) 120 -month instaliment note with 8% interest. Lenders often charge a higher interest rate for longer-term loans to compensate for additional risk of borrowing lending for a longer time period. Required: Complete this question by entering your answers in the tabs below. Record the first monthly payment of the 120 -month installment note with 8% interest A company has decided to purchase equipment, needing to borrow $100.000 from its local bank to make the purchase. The bank gives the company two options: (a) 60 -month installment note with 4% interest or (b) 120 -month installment note with 8% interest. Lenders often charge a higher interest rate for longer-term loans to compensate for additional risk of borrowing lending for a longer time period. Required: Complete this question by entering your answers in the tabs below. Select the options to display a 120 -month installment note with 12% interest. How much of the principal amount is due after the 60th payment? (Hint: Scroll down the Monthly Payment Schedule)

Answer & Explanation Solved by verified expert

See Answer