A man bonowed $3700 from a bank for 6 months A friend was cosigner of the man's personal note. The bank collected 3% simple interest on the date of maturity a) How much did the man pay for the use of the money? b) Determine the amount he repaid to the bank on the due date of the note
Q: At an interest rate of 6% per annum, the amount he should deposit in his account should be:
A: Present Value of Perpetuity: It refers to the present worth of perpetual cash flows and is computed…
Q: An insurance firm needs to make a payment of $10000 in 3 years, the market interest rate to discount…
A: Note: This post has multiple questions. The first three questions have been answered below.
Q: Jim has an annual income of $240,000. Jim is looking to buy a house with monthly property taxes of…
A: Here,
Q: You own an a townhome with an assessed value of $184,600. The tax rate is $2.20 per $100 of assessed…
A: The tax paid to the state government for owing a property is known as property tax. The rate of…
Q: If markets are efficient, periodic (e.g. daily) portfolio returns should have zero serial…
A: In efficient market hypothesis , zero setial correlation imply that price changes in consecutive…
Q: Consider a non-paying dividend stock sells for 150. George wants to sell his stock in one year for a…
A: Hedging is an risk management technique in which an investors manages ot removes his potential risk…
Q: bugh Syron Books Inc. recently reported $18 million of net income. Its EBIT was $25.2 million, and…
A: First we need to calculate earning before tax by using this equation Earning before tax =Net…
Q: he Equator Principles set out a step-by-step process for 'green financial institutions.' Select…
A: There are many risk related to the finance of the projects and environmental and social have…
Q: 10. Simple-interest loan $1800 @ 8% for 12 months with a monthly payment of $156.60. After 8 months…
A: Simple Interest is calculated as: = Principal * Rate * Time Here, principal is the opening balance…
Q: At any given time, the bank will purchase foreign exchange currency at what cost? a. market price…
A: Standard Disclaimers“Since you have asked multiple question, we will solve the first question for…
Q: bond call price
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: the rate of return
A: The rate of return refers to the earnings on the investment invested by the investors. The higher…
Q: Stock X has a 10% expected return, a beta coefficient of 0.9, and a 35% standard deviation of…
A: a) To find out which stock is riskier, should calculate Coefficient of Variation. Coefficient of…
Q: Maria's retirement fund has an accumulated amount of $50,000. If it has been earning interest at…
A: Given that: Monthly Interest rate =2.86%/12 =0.002383333%Quarterlyrate=(1+0.002383333)3-1=0.0071669…
Q: A with a total investment value of Rp. 500,000,000,- The ect is 5 years old. Based on the…
A: Net present value is the difference between present value of cash flow and initial investment of the…
Q: 12. Consider two mutually exclusive service projects. Which option is better if the interest rate is…
A: NPV of Project A=[-1000/(1+0.12)0]+[-400/(1+0.12)1]+[-400/(1+0.12)2]+[(-400+200)/(1+0.12)3] on…
Q: Starbucks (Croatia). Starbucks opened its first store in Zagreb, Croatia, in October 2010. In…
A: Given, The price in Croatia is 25.66 Croatian kunas The price in New York is $2.65 Exchange rate is…
Q: A $140,000 mortgage was amortized over 25 years by monthly repayments. The interest rate on the…
A: Price of house $ 1,40,000.00 Time Period 25 Interest Rate 4.10%
Q: Auditing Sales/Revenue Transactions When an auditor needs to obtain an understanding of the overall…
A: Management is the management of an institution, whether it be a corporation, a semi, or a federal…
Q: Suppose you held a diversified portfolio consisting of a $7,500 investment in each of 20 different…
A: The portfolio's beta is the weighted average of the individual asset betas, with the weights…
Q: All else equal, an increase in the information asymmetry between informed traders and liquidity…
A: Asymmetric information causes illiquidity, which is then exacerbated by liquidity providers'…
Q: QUESTION 1 You are approved for a loan of $25,000 at 5.3% compounded quarterly If you plan to pay…
A: Present Value of Ordinary Annuity refers to a concept that determines the value of cash flows at…
Q: Why do firms hedge their risk and what determines the choice of contract for hedging?
A: Hedging is a risk management approach that involves acquiring an opposing position in a comparable…
Q: A firm reported the following financials for 2021: Sales revenue = $3,060 %3D Accounts receivables =…
A: Sales = $3060 COGS = $1800 Total operating expenses = $600 Interest expenses = $126 Tax rate = 40%…
Q: Jean and Dan both work. Each earns a salary of $51,000, but only Jean is a member of a registered…
A: Given That: Jean and Dan Salary=$51000 Jean's Contribution to pension= 2% Dean's unused…
Q: Midwest Water Works estimates that its WACC is 10.45%. The company is considering the following…
A: The IRR rule is a formula for determining whether a project or investment should be pursued. The…
Q: Bonus Homework Question: Ahome is being purchased for $175,000 requiring a 20% down payment. The…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: What should you do? What is the YTM of the
A: The yield to maturity on a bond is the yearly annual rate of interest earned if the bond is held…
Q: A company has issued preferred shares with a dividend of $0.97. The current price per share is…
A: Preferred Shares are the hybrid security that has features of bonds as fixed preferred dividend and…
Q: a. How many payments are required to settle the loan? payments Round up to the next payment b. What…
A: Loan: It represents a sum of the amount borrowed by the borrower from the lender. The borrower pays…
Q: Write the present value function, letting x represent the number of years.
A: Given thatF = future value = $50,000Interest rate = r = 2.8% = 0.028Number of period per year =…
Q: Which of the following is an example of economic exposure but not an example of transaction…
A: There are three types of exposures: 1. Translation exposure 2. Transaction exposure 3. Economic…
Q: QUESTION TWO A large Bahraini company issued BD10,000, 10%, 10-year bonds that paid interest semi-…
A: Par value = BD10,000 Coupon rate = 10% Coupon amount = 10,000*0.10/2 = BD500 Years to maturity = 10…
Q: A 5-year project will require an investment of $100 million. This comprises of plant and machinery…
A: Earnings before taxes (EBT) is a metric used to assess a company's financial performance. It is a…
Q: Stocks A and B have the following probability distributions of expected future returns: Probability…
A: Here, Risk-free rate = 2.5% To Find: Part a). Expected rate of return =? Part b). Standard…
Q: Over time, a portfolio manager’s cumulated trade implementation shortfall will equal
A: Trade implementation shortfall is Cumulated direct transaction costs and liquidity costs , Cumulated…
Q: calculate the payment amounts when the mortgage is below are renewed for a second term. Assume…
A: To Find: New Payment
Q: The simple interest note was discoanted at 15%. Find the discount period in days and the proceeds.…
A: In order to calculate the proceeds of the simple interest note, we are required to calculate the…
Q: Bianca & John saved a deposit for $500,000 to buy their first investment property with a market…
A: The amount invested is $500,000 Market value of property one year ago is $1,500,000. property…
Q: A $350,000 house in Hamilton was purchased with a down payment of 20.00% of its value and a 20 year…
A: Price of house $ 3,50,000.00 Down Payment 20% Time Period 20 Interest Rate 3.50%
Q: The earnings stated in the consolidated income statement of a U.S. MNC is likely to ____ in the…
A: Given: Euro is depreciated relative to US. Earnings are stated in US dollars.
Q: Network Systems is introducing a new network card. Suppose Network Systems knows its fixed costs are…
A: Breakeven refers to the point at which the original cost equals the market price which is determined…
Q: For a farmer wishing to hedge the sale of wool in 6 months time which of the following stateme is…
A: The parties to forward contracts are obligated to purchase or sell the underlying securities at a…
Q: Consider the following bonds: What is the percentage change in the price of each bond if its yield…
A: Price of a bond = sum of present values of all cash flows that will occur in future. The present…
Q: A family of four has an income of $15,000 today and will earn $24,000 tomorrow. a. If the family…
A: Income =$15,000 today Income =$24,000 tomorrow. Time = 2 period
Q: Suppose, spot Rate is $1 = Tk. 79.20 - 80.40 Calculate swap points for 3 months, when interest…
A: Swap Points: It is difference in interest rates in between transaction currencies.
Q: A loan is to be amortized by n level annual payments of X where n > 5. You are given (1) The amount…
A: Let L = Loan amount Number of payments = n Annual payments = X Interest rate = r
Q: General Computers Inc. purchased a computer server by taking a loan of $33,000 at 3.50% compounded…
A: Amount of loan “L”= $33,000 Rate = 3.5% compounded semi-annually Semi-annual rate “r” = 3.5%/2 =…
Q: What is this firm's WACC?
A: WACC or Weighted average cost of capital is the weighted average cost of different sources of…
Q: Carson Electronics’ management has long viewed BGT Electronics as an industry leader and uses this…
A: To Find: Debt ratio Average collection period Fixed asset turnover Return on equity
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- A customer was unable to pay the accounts receivable on time in the amount of $34,000. The customer was able to negotiate with the company and transferred the accounts receivable into a note that includes interest, along with an up-front cash payment of $6,000. The note maturity date is 24 months with a 15% annual interest rate. What is the entry to recognize this transfer?Kelly Jones and Tami Crawford borrowed $12,000 on a 7-month, 6% note from Gem State Bank to open their business, Cullumber's Coffee House. The money was borrowed on June 1, 2022, and the note matures January 1, 2023. (a) Prepare the entry to record the receipt of the funds from the loan. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation June 11 Debit CreditA man borrowed $ 3700 from a bank for 6 months. A friend was cosigner of the man's personal note. The bank collected 7 1\2% simple interest on the date of maturity.
- 2. On April 1 Kendrick opened a savings account at a bank that paid 3.55 $1,000. On April 20 he withdrew $500. On April 30 the bank calculated the daily percent interest. His initial deposit was $3,200. On April 9 he deposited another interest. a) How much simple interest did his money earn? b) How much was in the account after the bank calculated the daily interest on April 30?Kelly Jones and Tami Crawford borrowed $33,000 on a 7-month, 6% note from Gem State Bank to open their business, Crane’s Coffee House. The money was borrowed on June 1, 2022, and the note matures January 1, 2023. Prepare the entry to record the receipt of the funds from the loan. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit June 1 enter an account title to record the receipt of the funds from the loan on June 1 enter a debit amount enter a credit amount enter an account title to record the receipt of the funds from the loan on June 1 enter a debit amount enter a credit amount eTextbook and Media List of Accounts Prepare the entry to accrue the interest on June 30. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)…Q.No.4. Following are the transactions given, you are required to pass Journal Entries for each and every transaction.o A bank loans the Business named, ABC Company ,$1,020,000; o The note has a 15% interest rate, payable quarterly to the bank.o ABC wires funds to the bank to pay for the interest expense, o On the date specified in the agreement, ABC pays the $1,020,000 loan back to the lender.o The Business Purchases made from Salim and Co. worth of $12000o Salim and Co. retuned defective goods worth of 500 Dollarso The Business Sold goods for $ 10,000 for casho Few goods were returned back to the business worth of 300 Dollarso The Business paid rent worth of $ 500o The Business paid salaries worth of $ 5,000
- Kelly Jones and Tami Crawford borrowed $30,000 on a 7-month, 9% note from Gem State Bank to open their business, Crane’s Coffee House. The money was borrowed on June 1, 2022, and the note matures January 1, 2023. Prepare the entry to record the receipt of the funds from the loan. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit June 1 enter an account title to record the receipt of the funds from the loan on June 1 enter a debit amount enter a credit amount enter an account title to record the receipt of the funds from the loan on June 1 enter a debit amount enter a credit amount eTextbook and Media List of Accounts Prepare the entry to accrue the interest on June 30. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and…Kelly Jones and Tami Crawford borrowed $10,500 on a 7-month, 8% note from Gem State Bank to open their business, Oriole’s Coffee House. The money was borrowed on June 1, 2022, and the note matures January 1, 2023. Prepare the entry to record the receipt of the funds from the loan. Date Account Titles and Explanation Debit Credit June 1 enter an account title to record the receipt of the funds from the loan on June 1enter an account title to record the receipt of the funds from the loan on June 1 enter a debit amountenter a debit amount enter a credit amountenter a credit amount enter an account title to record the receipt of the funds from the loan on June 1enter an account title to record the receipt of the funds from the loan on June 1 enter a debit amountenter a debit amountKelly Jones and Tami Crawford borrowed $30,000 on a 7-month, 9% note from Gem State Bank to open their business, Crane’s Coffee House. The money was borrowed on June 1, 2022, and the note matures January 1, 2023. Correct answer iconYour answer is correct. Prepare the entry to record the receipt of the funds from the loan. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit June 1 enter an account title to record the receipt of the funds from the loan on June 1 enter a debit amount enter a credit amount enter an account title to record the receipt of the funds from the loan on June 1 enter a debit amount enter a credit amount eTextbook and Media List of Accounts Partially correct answer iconYour answer is partially correct. Prepare the entry to accrue the interest on June 30. (Credit account titles…
- Nugget discovered that cheque 735 written in March for $767 and cleared the bank was recorded in their books as $676On April 1, Moore gave Pipkin a check properly drawnby Moore on Zebra Bank for $5,000 in payment of apainting to be framed and delivered the next day. Pipkinimmediately indorsed the check and gave it to YeagerBank as payment in full of his indebtedness to thebank on a note he previously had signed. Yeager Bankcanceled the note and returned it to Pipkin.On April 2, upon learning that the painting had beendestroyed in a fire at Pipkin’s studio, Moore promptlywent to Zebra Bank, signed a printed form of stop payment order, and gave it to the cashier. Zebra Bankrefused payment on the check upon proper presentmentby Yeager Bank.a. What are the rights of Yeager Bank against Zebra Bank?b. What are the rights of Yeager Bank against Moore?c. Assuming that Zebra Bank inadvertently paid theamount of the check to Yeager Bank and debitedMoore’s account, what are the rights of Mooreagainst Zebra Bank?Mr. P's bank statement dated 31.12.2021 showed a balance with his Bank of $924, when checked with his Cash Book the following were noted :(a) During December, the Bank had paid $200 for a yearly contribution of Mr. P made to a local charity, as per his standing order. This amount appeared in the Bank statement but not in the Cash Book.(b) The Bank had credited his account with $28 interest and had collected on his behalf `$230 as dividends. No corresponding entries were made in the Cash Book.(c) A cheque of $65 deposited into the Bank on 28.12.2021 was not cleared by the Bank till after 31.12.2021(d) A cheque of $150 deposited into and cleared by the Bank before 31.12.2021 was not entered in the Cash Book, through an oversight.(e) Cheques drawn by and posted to parties by Mr. White on 31.12.2021 for $73, $119 and $46 were presented for payment to the Bank only on 3.1.2021.