A five-year, $3000 note bearing interest at 8% compounded annually was discounted at 12% compounded semi-annuallyyielding proceeds of $4000.03. How many months before the due date was the discount date?The discount date was months before the due date.(Round to the nearest month.)

Notes are financial instruments that promise to pay the specified amount on the maturity of the…

Answered: A five-year, $3000 note bearing…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 15MC: Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual...

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A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an annual interest rate of 11%. If 6 months have passed since note establishment, what would be the recorded interest figure at that time? A. $7,150 B. $65,000 C. $14,300 D. $2,383
Jain Enterprises honors a short-term note payable. Principal on the note is $425,000, with an annual interest rate of 3.5%, due in 6 months. What journal entry is created when Jain honors the note?
If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?
Chemical Enterprises issues a note in the amount of $156,000 to a customer on January 1, 2018. Terms of the note show a maturity date of 36 months, and an annual interest rate of 8%. What is the accumulated interest entry if 9 months have passed since note establishment?
Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual interest rate of 6%, and payable in four months. How much interest will Marathon Peanuts owe at the end of four months? A. $2,600 B. $7,800 C. $137,800 D. $132,600
A $12,000 non-interest-bearing promissory note is discounted at 6% compounded monthly, three years before maturity. What are the proceeds from the sale of the note?
Four years and 7 months before its due date, a seven-year note for $2650, bearing interest at 9% compounded quarterly, is discounted at 8% compounded semi-annually. Find the compound discount.
A five year promissory note with a face value of $5000, bearing interest at 6% compounded semi-annually, was sold 18 months after its issue date to yield the buyer 4% compounded quarterly. What amount was paid for the note?
When discounted to yield 8.2% compounded quarterly, a $4,200 six-year promissory note bearing interest at 9.5% compounded semiannually was priced at $5,406.33. How long after the issue date did the discounting take place? (Do not round the intermediate calculations. Round your answer to the nearest month.) The discounting took place: ? year(s) and:? month(s) after issue.
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When discounted to yield 8.8% compounded quarterly, a $4,800 five-year promissory note bearing interest at 10.5% compounded semiannually was priced at $6,302.35. How long after the issue date did the discounting take place? (Do not round the intermediate calculations. Round your answer to the nearest month.) The discounting took place _ year(s) and _ month(s) after issue. Help me fast so that I will give Upvote.
When discounted to yield 9.2% compounded quarterly, a $6,600 four-year promissory note bearing interest at 12.6% compounded semiannually was priced at $8,571.44.How long after the issue date did the discounting take place? (Do not round the intermediate calculations. Round your answer to the nearest month.)The discounting took place year(s) and month(s) after issue.

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A five-year, $3000 note bearing interest at 8% compounded annually was discounted at 12% compounded semi-an yielding proceeds of $4000.03. How many months before the due date was the discount date? The discount date was months before the due date.