Wednesday

July 23, 2014

July 23, 2014

Posted by **Gibbons** on Tuesday, June 22, 2010 at 2:43am.

(a) a debt of $15,000,000 with interest at 12% by 5 equal annual payments.

(b) a debt of $25,000,000 with interest at 12.5% compounded semi-annually by making 6 equal semi-annual payments.

- Mathematics -
**Reiny**, Tuesday, June 22, 2010 at 9:37ama)

First we have to find the payment, assume it is made at the end of each year

15000000= pay( 1 - 1.12^-5)/.12

pay = 4161145.98

Paym# interest principal Balance

1 1800000.00 2361145.98 12638854.02

2 1516662.48 2644483.45 9994370.52

3 1199324.46 2961821.52 7032549.01

4 843905.89 3317240.10 3715308.91

5 445837.07 3715308.91 0.00

not bad,

now do b) the same way

your payment equation will be

25000000 = pay( 1 - 1.0625^-6)/.0625

**Related Questions**

Mathematics - Construct a schedule for the amortization of: (a) a debt of $15,...

Finance - You are considering the purchase of an industrial warehouse. The ...

finance - Sterling optical and Royal Optical both make glass frames and each is ...

Accounting - 1. The price of a bond is equal to the sum of the interest payments...

Finance - Atlantic Seafood has determined that $17,000 is the break-even level ...

math - A $15,000 debt is to be amortized in 12 equal semiannual payments at 5.5...

Finance - Item Total assets $10,000,000 Total equity (all common) 9,000,000 ...

Finance - Item Total assets $10,000,000 Total equity (all common) 9,000,000 ...

Math Finance - Rex Corp's EBITDA last year was $385,000 (= EBIT + depreciation...

please help - . If Healthy Foods has an annual interest expense of $10,000, ...