Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. 14. loan amortization and capital recovery lan loa

14. Loan amortization and capital recovery lan loaned his friend $20,000 to start a new...

60.1K

Verified Solution

Question

Finance

image
14. Loan amortization and capital recovery lan loaned his friend $20,000 to start a new business. He considers this loan to be an investment, and therefore requires his friend to pay him an interest rate of 6% on the loan. He also expects his friend to pay back the loan over the next four years by making annual payments at the end of each year. Ian texted and asked that you help him calculate the annual payments that he should expect to receive so that he can recover his initial investment and earn the agreed-upon 6% on his investment. Calculate the annual payment and complete the following capital recovery schedule: Ending Balance Interest Paid Principal Paid Payment Year Beginning Amount $20,000.00 1 2 $0.00

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Transcription requires _____ to add nucleotides to form an new molecule. Question 58 options: a) DNA polymerase b) RNA polymerase c) ribosomes d) tRNA Question 59...

Biology
Q

Licensing agreements Joint ventures O Business alliances partnerships with a company in another nation Which...

Biology
Q

14 For the cantilever beam and loading shown determine the slope and deflection at point...

Statistics
Q

3 Express 7 45 as a ratio of integers

Calculus
Q

Question Content Area Keating Co. is considering disposing of equipment that cost $54,000 and...

Accounting
Q

What are some of the options available to families with inadequate savings?

Accounting
Q

The Global Reporting Initiative (GRI) has developed a sustainability reporting framework that A.Manages...

Accounting
Q

On January 1,2024 , White Water issues $580,000 of 8% bonds, due in 15 years,...

Accounting
Q

Selected financial data for Channel Co. is provided below: ($ in millions) Sales $ 50,000...

Accounting
Q

Marv's breakeven point is $304,500 of sales. His current sales are $870,000. What is Marv's...

Accounting
Q

How many users can use Spreadsheet Sync concurrentlyf or a connected Quckbooks online advanced company

Accounting
Q

E10-2 Recording a Note Payable through Its Time to Maturity [LO 10-2] Many businesses borrow...

Accounting