On January 1, 2020, a company buys a piece of equipment costing $666,633 with a 14% installment note. The note will be paid off with 6 semiannual payments over three years (2 payments a year for 3 years). Each payment is $139,857. Required:
Prepare the installment note schedule

Installment Note Schedule:

Period      Beginning Balance    Interest       Principal     Ending Balance

1. Year #1$666,633.00$46,664.31$93,192.49$573,440.51

2. Year #1$573,440.51$40,140.84$99,715.97$473,724.54

3. Year #2$473,724.54$33,160.72$106,696.09$367,028.45

4. Year #2$367,028.45$25,691.99$114,164.81$252,863.64

5. Year #3$252,863.64$17,700.45$122,156.35$130,707.29

6. Year #3$130,707.29$9,149.51$130,707.29$0.00

Explanation:

a) Data and Calculations:

Cost of equipment = $666,633

Rate of interest = 14%

Payment terms = semiannual payments over three years

Payment for each period = $139,857

Loan Amount  $666,633

Loan Term  3  years  0  months

Interest Rate  14

Compound  Semi-annually

Pay Back  Every 6 Months

Results:

Payment Every 6 Months = $139,856.80 = $139,857 approx.

Total of 6 Payments = $839,140.82

Total Interest = $172,507.82

steering wheels are always situated on the left side of the car.

always drive on the right side of the road.

white lines separate lanes of traffic traveling the same direction.

hashed or broken lines means you may change lanes when it is safe.

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hashed or broken yellow lines mean you can carefully pass, paying attention to oncoming traffic.

never cross a solid yellow line (or double yellow line).

when turning left at an intersection, pass in front of any cars that are turning left from the opposing direction (do not try to pass behind them).

use the left lane to pass other cars traveling your direction.

do not pass in the right lane unless absolutely necessary.

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you must always yield to pedestrians.

come to a complete stop whenever you see pedestrians trying to cross the street.

never pass a school bus if it has flashing red lights. wait until the lights have stopped.

be aware of bicyclists. often they share the road with cars and are supposed to also follow general traffic laws.

be particularly careful about driving in cities with bike lanes -- always check before turning that a bike is not coming.

it is mandatory to pull over or stop at an intersection to allow an emergency vehicle to pass you if you see one traveling with lights flashing and/or a siren running.

do not overuse your car horn. horns are used almost exclusively for emergency situations or for when you feel unsafe.

explanation: