A man borrowed $3700 from a bank for 6 months A friend was cosigner of the man's personal note. The bank collected 3 simple interest on thedate of maturitya) 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 notea) The man paid Sfor the use of the money

On simple interest it should be noted that the interest amount is computed only on the principal…

Answered: A man bonowed $3700 from a bank for 6…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Q1)Zetix borrowed $20,000 on a one-year, 10 percent note payable from the local bank on March 1. Interest was paid quarterly, and the note was repaid one year from the time the money was borrowed. a)Calculate the amount of cash payments Zetix was required to make in each of the two calendar years that were affected by the note payable assuming accounting period ends on Dec. 31 each year. Q2)Glen Pool Club, Inc., has a $300,000 mortgage liability. The mortgage is payable in monthly installments of $3000, which include interest computed at an annual rate of 12 percent. a) Prepare a partial amortization table showing (1) the original balance of this loan, and (2) the allocation of the first two monthly payments between interest expense and the reduction in the mortgage’s unpaid balance. (Round to the nearest dollar.)
Jason borrowed $2,500 on March 1 from a bank and promised to pay back the money in 90 days at 6% interest using the 360-day Banker's Method. What amount will Jason pay the bank when the loan is due?
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Jennifer deposits $1000 into a bank account. The bank credits interest at a nominal annual rate of i convertible semiannually for the first 7 years and a nominal annual rate of 2i convertible quarterly for all years thereafter. The accumulated amount in the account at the end of 10.5 years is $1980. Compute the accumulated amount in the account at the end of 5 years.
Use the ordinary interest method, 360 days, to solve the following word problem. Round to the nearest cent when necessary. Roni Lockard signed a $21,500 simple discount promissory note at a certain bank. The discount rate was 14%, and the note was made on February 11 (not in a leap-year) for 119 days. (a) What proceeds (in $) will Roni receive on the note?
Trina Alcala deposited $1,950 in a new credit union savingsaccount on the first of the quarter. The principal earns 4.25% interestcompounded quarterly. She made no other deposits or withdrawals.a. What was the amount in her account at the end of 6 months?b. What is the compound interest?
Mr. Smith did not pay his full credit card balance on June 5th, the due date each month for payment. The unpaid balance was $800. He purchased a new washing machine on credit on June 30 for $1,000. If interest is charged at a rate of 18%, compounded daily, what would be the interest charge on his next credit card bill using the average daily balance method? a) $26.63 b) $21.77 c) $14.79 d) $13.32
Mr. Bacani borrowed money from the bank. He received from the bank P1,842 and promised to repay P2,000 at the end of 10 months. Determine the rate of simple interest. A. 12.19 % B. 12.03 % C. 11.54 % D. 10.29 % Mr. Bacani borrowed money from the bank. He received from the bank P1,842 and promised to repay P2,000 at the end of 10 months. Determine the rate of simple interest. A. 12.19 % B. 12.03 % C. 11.54 % D. 10.29 %
James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and Trust. He permits some customers to sign short-term notes for their purchases. He usually discounts these notes at the bank. Following are selected transactions that occurred in March 20X1. DATE TRANSACTIONS 20X1 Mar. 4 Mr. Howard borrows $34,560 from the bank on a note payable for the business. Terms of the note are 10 percent interest for 45 days. 11 A 90-day $47,520 note payable to the bank is discounted at a rate of 8 percent. 22 Sold a car to Darnell Jones for $40,320 on a 75-day note receivable, bearing interest at 7 percent. 23 Discounted the Jones note with the bank. The bank charges a discount rate of 10 percent. 25 Sold a car for $48,960 to Henry Thomas. Thomas paid $4,000 cash and signed a 30-day note, bearing interest at 9 percent, for the balance. 28 Alfred Herron's account receivable is overdue. Howard requires him to sign a 8…
James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and Trust. He permits some customers to sign short-term notes for their purchases. He usually discounts these notes at the bank. Following are selected transactions that occurred in March 20X1. DATE TRANSACTIONS 20X1 Mar. 4 Mr. Howard borrows $20,000 from the bank on a note payable for the business. Terms of the note are 8 percent interest for 45 days. 11 A 90-day $18,000 note payable to the bank is discounted at a rate of 10 percent. 22 Sold a car to Darnell Jones for $30,000 on a 75-day note receivable, bearing interest at 10 percent. 23 Discounted the Jones note with the bank. The bank charges a discount rate of 12 percent. 25 Sold a car for $30,000 to Henry Thomas. Thomas paid $4,000 cash and signed a 30-day note, bearing interest at 10 percent, for the balance. 28 Alfred Herron's account receivable is overdue. Howard requires him to sign a 12…
Sean purchased an interest-bearing promissory note for $11,000.00 at 5.00% p.a., due in 90 days. If he sold the note in 36 days by discounting it at 6.00% p.a., calculate the proceeds of the note. Round to the nearest cent
Mr. Navarro received a loan with maturity value of 811,000 at a discount rate of 11.22 % for 11 months. Find the following: 1.Bank discount 2.Proceed

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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