Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. you are told that a note has repayment terms of $9

You are told that a note has repayment terms of $900 per quarter for 6...

80.2K

Verified Solution

Question

Accounting

image
image
You are told that a note has repayment terms of $900 per quarter for 6 years, with a stated interest rate of 49 . How much of the total payment is for principal, and how much is for interest? Calculate using (a) financial calculator or (b) Excel function PV. (Round answers to 2 decimal ploces, es. 5,275,25. Total payment for principal Totalinterest Determine if the total interest will be higher or lower than with an annual payment. The total interest will be than with an annual payment. Crane Company must perform an impairment test on its equipment. The equipment will produce the following cash flow: Yoar 1 . $38,000; Year 2,\$46,000; Year 3,\$55,000. The discount rate is 10%. What is the value in use for this equigment? Use the present value table in your calculation. (For calculation pumposes, use 5 decimal ploces as disployed in the foctor table provided Round final answer to 2 declmal ploces, es 5,275.25) Click here to view the factor table PRESENT VALUE OE 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITYOF 1. Value in use

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students