How much interest would you be paying in year 2

Reference no: EM13294434

Your bank offers to lend you $100,000 at an 8.5% annual interest to start your new business. The terms require you to amortize the loan with 10 equal end-of-year payments. How much interest would you be paying in Year 2? Explain.

a) $7, 531
b) $7,927
c) $8,323
d) $8,740
e) $9,177

Reference no: EM13294434

Questions Cloud

Determine the change in energy of the capacitor : A parallel-plate capacitor in air has a plate separation of 1.49 cm and a plate area of 25.0 cm2. Determine the change in energy of the capacitor

Explain gas occupy at the same temperature and pressure : A 0.625 mole sample of N2 gas at 1.50 atm and 45C occupies a volume of 10.9L. What volume in liters would each of the following molar sized samples of gas occupy at the same temperature and pressure. a) 2.00 moles CO2

What is the effective annual rate on the loan : Suppose Community Bank offer to lend you $10,000 for one year at a nominal annual rate of 8%, but you must make interest payments at the end of each quarter and then pay off the $10,000 principle amount at the end of the year. What is the effectiv..

Design a sequence detector using d flip-flops to detect : A) Design a sequence detector using D flip-flops to detect the sequence 1101with the overlapping permitted. B) Design a synchronous counter using J-K flip-flops that hasthe following sequence:- 000,010,101,110 and repeat.

How much interest would you be paying in year 2 : Your bank offers to lend you $100,000 at an 8.5% annual interest to start your new business. The terms require you to amortize the loan with 10 equal end-of-year payments. How much interest would you be paying in Year 2? Explain.

Calculate the current as time approaches infinity : 8.95 H inductor with negligible resistance is placed in series with a 15.3 V battery, a 3.00 ? resistor, Calculate the current as time approaches infinity

Compute the bullets electric charge : In a certain region, the earth's magnetic field has a magnitude of 5.4 × 10-5 T and is directed north at an angle of 49° below the horizontal. Determine the bullet's electric charge

Determine the energy stored in the two capacitors : There are two 100μF capacitors. One is charged to an initial voltage of 50V and the other to an initial voltage of 100V. They are then placed in series with the positive terminal of the first connected to the negative terminal of the second.

Find the after-tax return to a corporation : Find the after-tax return to a corporation that buys a share of preferred stock at $43, sells it at year-end at $43, and receives a $6 year-end dividend. The firm is in the 30% tax bracket. (Do not round intermediate calculations.

User Account

All Pages