Ch10 Homework graded

Ch10 Homework graded - Homework Manager - Financial...

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Question 1: Score 2/2 Question 2: Score 2/2 Question 3: Score 2/2 Your response Correct response Exercise 10.1: You as a Student L.O. 4 Assume that you will have a 10-year, $10,000 loan to repay to your parents when you graduate from college next month. The loan, plus 8 percent annual interest on the unpaid balance, is to be repaid in 10 annual installments of $1,490 each, beginning one year after you graduate. You have accepted a well-paying job and are considering an early settlement of the entire unpaid balance in just three years (immediately after making the third annual payment of $1,490). Prepare an amortization schedule showing how much money you will need to save to pay your parents the entire unpaid balance of your loan three years after your graduation. Use text Exhibit 10-5 as a model. Round amounts to the nearest dollar. Ex. 10.1 Interest Period Annual Payment Annual Interest Expense @ 8% Reduction in Unpaid Balance Unpaid Balance Date of Graduation $10,000 Year 1 $ 1490 (8%) $800 $ 690 (8%) 9310 (8%) Year 2 1490 (8%) 745 (8%) 745 (8%) 8565 (8%) Year 3 1490 (8%) 685 (8%) 805 (8%) 7760 (8%) You would need to save $ 7760 (8%), as shown in the loan amortization table. Exercise 10.1: You as a Student L.O. 4 Assume that you will have a 10-year, $10,000 loan to repay to your parents when you graduate from college next month. The loan, plus 8 percent annual interest on the unpaid balance, is to be repaid in 10 annual installments of $1,490 each, beginning one year after you graduate. You have accepted a well-paying job and are considering an early settlement of the entire unpaid balance in just three years (immediately after making the third annual payment of $1,490). Prepare an amortization schedule showing how much money you will need to save to pay your parents the entire unpaid balance of your loan three years after your graduation. Use text Exhibit 10-5 as a model. Round amounts to the nearest dollar. Ex. 10.1 Interest Period Annual Payment Annual Interest Expense @ 8% Reduction in Unpaid Balance Unpaid Balance Date of Graduation $10,000 Year 1 $ 1490 $800 $ 690 9310 Year 2 1490 745 745 8565 Year 3 1490 685 805 7760 You would need to save $ 7760 , as shown in the loan amortization table. Your response Correct response Exercise 10.3: Effects of Transactions on Various Financial Measurements L.O. 1, 2, 4-6, 8 Six events relating to liabilities follow: a. Paid the liability for interest payable accrued at the end of the last accounting period. b. Made the current monthly payment on a 12-month installment note payable, including interest and a partial repayment of principal. c. Issued bonds payable at 98 on March 1, 2007. The bonds pay interest March 1 and September 1. d.
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This note was uploaded on 09/24/2008 for the course ACCT 116A taught by Professor Tuttle during the Summer '08 term at San Diego.

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Ch10 Homework graded - Homework Manager - Financial...

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