Sheridan Service has a line of credit loan with the bank. The initial loan balance was $7000.00. Payments of $2500.00 and $3000.00 were made after five months and nine months respectively. At the end of one year, Sheridan Service borrowed an additional $4000.00. Ten months later, the line of credit loan was converted into a collateral mortgage loan. What was the amount of the mortgage loan if the line of credit interest was 7% compounded monthly?
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- A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an annual interest rate of 11%. If 6 months have passed since note establishment, what would be the recorded interest figure at that time? A. $7,150 B. $65,000 C. $14,300 D. $2,383Sheridan Service has a line of credit loan with the bank. The initial loan balance was $8000.00. Payments of $3000.00 and $4000.00 were made after four months and eight months respectively. At the end of one year, Sheridan Service borrowed an additional $5000.00. Six months later, the line of credit loan was converted into a collateral mortgage loan. What was the amount of the mortgage loan if the line of credit interest was 7% compounded monthly? The amount of the loan is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)Sheridan Service has a line of credit loan with the bank. The initial loan balance was $6000.00. Payments of $2000.00 and $2500.00 were made after five months and eight months respectively. At the end of one year, Sheridan Service borrowed an additional $4000.00. Nine months later, the line of credit loan was converted into a collateral mortgage loan. What was the amount of the mortgage loan if the line of credit interest was 5% compounded monthly? The amount of the loan is $
- A company lends its supplier $154,000 for 3 years at a 10% annual interest rate. Interest payments are to be made twice a year. The entry to record the establishment of the loan includes a debit to: Multiple Choice Interest Receivable and a credit to Interest Revenue for $7700. Notes Receivable and a credit to Cash for $154,000. Cash and a credit to Notes Payable for $154,000. Cash and a credit to Interest Revenue for $15,400.1. Terry Bergolt's bank granted him a single-payment loan of $4,400 at an interest rate of 6% exact interest. The term of the loan is 72 days. 1a. What is the exact interest? 1b) What is the maturity value of the loan? 2. Jane Dimas obtained a single-payment loan of $420 to pay a repair bill. She agreed to repay the loan in 90 days at an interest rate of 6.25% ordinary interest 2a. What is the ordinary interest? 2b. What is the maturity value of the loan?Leven Corporation negotiated a short-term loan of $685,000. The loan is due in 10 months and carries a 6.86 interest rate. Use simple interest to calculate the total amount of thetioan. If necessary, round the answer to the nearest cent.
- A bank is offering a loan of $20,000 with an interest rate of 9%, payable with monthly payments over a 4-year period. a. Calculate the monthly payment required to repay the loan. b. This bank also charges a loan fee of 4% of the amount of the loan, payable at the time of the closing of the loan (that is, at the time the borrower receives the money). What effective interest rate is the bank charging?Raymond borrowed $3,000.00 from Loans R Us Company. The line of credit agreement provided for repayment of the loan in equal monthly payments of $668.76 which includes interest of 9.00 % per annum calculated on the unpaid balance. a. What is the monthly rate of interest? b. Calculate the outstanding loan balance at the end of the third payment c. What are the total interest charges? d. How many payments are required to pay off the loan e. What is the final PaymentA lender lends $10,500, which is to be repaid in annual payments of $2,020 for 6 years. Which of the following shows the timeline of the loan from the lender's perspective? A. Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 $2,020 $2,020 $2,020 $2,020 $2,020 В. Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 - $10,500 $2,020 $2,020 $2,020 $2,020 $2,020 С. Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 - $10,500 $2,020 $2,020 $2,020 $2,020 $2,020 $2,020 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 - $10,500 $2,020 $4,020 $6,020 $8,020 $10,020 $12,020
- 1. A bank is offering to sell certificates of deposit valued at $ 5,000.00. At the end of 3 years, the bank will pay $5,310.00 to the certificate owner. Based on a three- month interest period: What is the interest rate the bank is paying you each interest period? b) deposit? What are the nominal and effective interest rates on this certificate ofA Company borrowed money from a local bank. The note the company signed requires five annual installment payments of $10,000 beginning one year from today. The interest rate on the note is 7%. What amount did the company borrow? Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)A local lending institution advertises the "51-50 Club". A person may borrow $2000 and repay $51 for the next 50 months, beginning 30 days after receiving the money.Compute the nominal interest rate for this loan. What is the effective interest rate?