i really an struggling to find part H (the last photo) could you help me...

70.2K

Verified Solution

Question

Accounting

i really an struggling to find part H (the last photo) could you help me ? i added photos of answers i got right for context
image
image
image
image
Since it is important to not round until the final step of the calculations, the spreadsheet applet above and its buil-in formulas wil be very helpful answering the questions below. H.E. Pennypacket, a wealthy American industrialist, is looking to purchase a silver mine in the mountains of Peru. in need of a loan, Pennypacker finances the entire value of the mine and borrows $291,693,500 from Varnsen Savings and Loan. The terms of the loan stipulate that Pennypacker will pay an annuat interest rate of 3.468%, compounded quarterly, for a term of 15 years. (a) First, determine the "future value" of the loan, from the perspective of Varnsen Savings and Loan. To the directors of Varnsen Sal, when an amount of $291,693,500 is compounded quarterly for 15 years, what is the future value of the money? To use the spreadsheet, enter the interest per period in cell B4, You should be entering a fraction here, NoT a rounded number. Remember to arrow out of the cell instead of hitting enter. Then enter the total number of compounding periods for the duration of the loan in B5. The future value of the loan wilt bo calcutated in cell B6. We witt round this value to the nearest cent and use the rounded value for future calculations From the perspective of Varnsen S8L, the Future value of the loan will be (round to the nearest cent). (b) From the list below, identify the formula used by the spreadsheet to compute the answer to part (a). A. F=(nt)P((1+n2)n+11) B. F=P(1+rt) c. F=Pent D. rr=(1+nr)n1 E. F=P(1+rn)nr F. None of these Dart of the formuls, enter "NONE" in the blank (a) Nonc, when preparing the foun paperwork and agreements, Varnsen Savings and Laan needs to determine what Percypacker's payments will be it order to repay the loan. From the perspective of Varnsen, they can ithink of the payments as an ordinary annuity, with a poal of reschind the future value found in part (a). payments in 1812 . The payment will display in a13 Varnsen Savings end Loan wall require a quaterly payment of 1 (round to the neareat cent) in their ioan repayment centract with Pernypacker. (6) From the lis below, idencliy the formula used by the spreadsheet to compute the answer to part (o). A. F=P(1+r) B. F=Pcn c. F(t)p(1+y1) D. F=P(1+n)m E fx=(1+n4)x1 (1) Fill in the blanks below with the values that should be used for each variable in the formula chosen in part (e). If a letter is fisted that is not part of the formuts, enter "NONE" in the blank. n=15t=15r= (g) Now, we switch to Pennypacker's perspective on the loan. He will receive a lump sum of $291,693,500 from Varsen S\&L in order to purchase the silver mine. Then, he will make pre-determined foxed quarterly payments (one payment every 3 months) for the full 15 year term of the loan agreement. These are referred to as amortization payments. The amount of each payment will be the amount found above in part (d). Determine ali of the following information about Pennypacker's loan. For each step, use the value of the payment rounded to the nearest cent. Total value of the mine (amount of original loan) is $ Penmpacker's quarterly amortization payments will each be $ The total number of amortization payments over the 15 year term will be The total amount that Pennypacker will pay back to Varnsen Savings and Loan over the full 15 years will be $ The total amount of interest that Pennypacker will pay over the term of the loan will be s (h) Now, for this last part, we will assume that 11 years have passed. Penmypacker has made all of his quarterly payments throughout those 11 years, So, the total amount that he has paid to Varnsen Savings and Loan so far is \$ continues to make quarterfy payments for the remaining 4 years, then he will pay a total of $ (to the nearest cent). If Pennypacker over those 4 years. (to the nearest cent) to the bank (h) Now, for this last part, we will assume that 11 years have passed. Pennypacker has made all of his quarterly payrnents throughout those 11 years, So, the total amount that he has paid to Varnsen Sawings and Loan so far is $ (to the nearest cent), if Pennypacker continues to make quarterly payments for the remaining 4 years, then he will pry a fotal of $ (to the nearest cent) to the bank over those 4 years. Pennypacker is considering paying off the remaining loan in a lump sum in one day (at the end of 11 years), If he does this, he will not need to pay the romaining 4 years of interest, just the remaining balance due on the mine. Pennypacker's friend Art Vandelay showed him the formula to compute the remaining balance. Since there are 4 years remaining and P is the amount of each payment (as found above in part ( 9 )), they compute Thus, the balance remaining on the loan after 11 years will be 4 (to the nearest cent). Now, recall that the original value of the mine (the original amount of the loan) was 1 is. (to the nearest cent). In other words, Pennypacker's equity in the silver mine is Thus, after 11 years, Pennypacker's equity in the mine \% (round percent to 3 decimal places) after 11 years

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