Find what amount of interest will sanders pay in year

Assignment Help Financial Accounting
Reference no: EM132662105

Sanders Co. is planning to finance an expansion of its operations by borrowing $45,900. City Bank has agreed to loan Sanders the funds. Sanders has two repayment options:

(1) to issue a note with the principal due in 10 years and with interest payable annually or

(2) to issue a note to repay $4,590 of the principal each year along with the annual interest based on the unpaid principal balance. Assume the interest rate is 10 percent for each option.

Problem 1:
What amount of interest will Sanders pay in year 1 under option 1 and under option 2? (Round your final answers to the nearest dollar amount.)

Problem 2: What amount of interest will Sanders pay in year 2 under option 1 and under option 2? (Round your final answers to the nearest dollar amount.)

Reference no: EM132662105

Questions Cloud

What is the intrinsic value of a share today : This risk free-rate is 2% and the expected return on the market is 11%.Crystal palace has a beta of 0.8. What is the intrinsic value of a share today?
Cultural differences-while difficult to observe and measure : Cultural differences, while difficult to observe and measure, are obviously very important. Hofstede's Cultural Dimensions to repair the damage?
Find and calculate amount of bond discount or premium : Calculate the amount of bond discount or premium. Gray Co. issued $65,000 of 6 percent bonds at 103 1/2. / Bush, Inc. issued $88,000 of 10-year, 6 percent bonds
Analyze the impact of curative factors on client progress : In your role, you must understand group processes and stages of formation, as this will help you develop groups and determine an individual's appropriateness.
Find what amount of interest will sanders pay in year : Find What amount of interest will Sanders pay in year 1 under option 1 and under option 2? (Round your final answers to the nearest dollar amount.)
Differentiate between primary and secondary sources : You need to explain the difference between primary and secondary sources in research. How did your organize the information that you found?
What is the vail book mart net income for the year : What is the total amount of sales tax Vail Book Mart collected and paid for the year? What is the Vail Book Mart's net income for the year?
Compute the Fox recognized gain on this distribution : Fox Corp. owned 2,000 shares of Duffy Corp. stock that it bought in year 0 for $9 per share. Compute the Fox recognized gain on this distribution
Computing the effective annual interest rate : You are a young personal financial adviser. Molly, one of your clients approached you for consultation about her plan to save aside $450,000 for her child's

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd