A company borrows $ from a bank. The interest rate on the loan is percent compounded semiannualy. The company agrees to repay the loan in equal semiannualy installments over the next years. The first payment is to be made six months from now. Use factor table in Appendix B for calculation
Required : What is the amount of each semiannual payment? $
Required : In the first payment, what is the amount of principal cancelled? $
Required : In the second payment, what is the amount of interest paid? $
Required : In the last payment, what is the amount of the last payment to cancel the loan? $
Required : Assume the debt contract has the option to make one extraordinary payment of up to of the principal. If the company decides to exercise the right and make the extra payment together with the th payment, how much it must pay in dollars at the th payment to pay off the loan? $
Required : What is the amount reported in the annual audited balance sheet for this loan at the end of period $
Required : What is the amount of interest expense reported in the annual audited income statement for this loan at the end of period $
