fgd On April 1, 2016, John Vaughn purchased appliances fromthe Acme Appliance Company for $1,200. In order toincrease sales, Acme allows customers to pay ininstallments and will defer any payments for six months.John will make 18 equal monthly payments, beginningOctober 1, 2016. The annual interest rate implicit in thisagreement is 24%.Calculate the monthly paymentnecessary for John to pay for his purchases.

Answered: Image /qna-images/answer/e303c381-cae3-4c2e-aca5-2650e39f3d8f.jpg

Answered: On April 1, 2016, John Vaughn purchased…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 24Q: Chemical Enterprises issues a note in the amount of $156,000 to a customer on January 1, 2018. Terms...

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Gear Up Co. pays 65% of its purchases in the month of purchase, 30% in the month after the purchase, and 5% in the second month following the purchase. What are the cash payments if it made the following purchases in 2018?
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?
On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10% interest rate. Each annual payment is in the amount of $39,569 and payment is due each Dec. 31. What is the journal entry on Jan. 1 to record the cash received and on Dec. 31 to record the annual payment? (You will need to prepare the first row in the amortization table to determine the amounts.)
Otto Co. borrows money on April 30, 2019, by promising to make four payments of $13,000 each onNovember 1, 2019; May 1, 2020; November 1, 2020; and May 1, 2021. How much money is Otto able to borrow if the interest rate is 16%, compounded semiannually?
Meman
K Jie purchased a computer priced at $1316.21, financing it by paying $60.16 on the date of purchase, and signing a contract to pay equal monthly payments over the next seventeen months. If the terms of the contract state that interest is calculated at 9.4% compounded monthly, how much does Jie have to pay at the end of each month? ... Jie must make payments of $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) 2
On January 1, 2022, Anderson Company purchased a machine with a cost of $14,409.50. To complete the purchase, Anderson signs a note specifying monthly payments of $600 beginning one month from the purchase date. The interest rate is 18% compounded monthly. How many payments will Anderson make for this loan? What is the total amount of interest that Anderson will pay over the life of this loan?
On January 1, 2006, Mr. Jones took out a loan amounting to $10,000. He then made annual repayments of $1,000 on the first day of 2007, 2008, and 2009. Additionally, on July 1, 2009, he made an extra payment of $5,000 and ceased any further repayments. Assuming the quarterly discount rate is 8%, calculate the remaining balance of Mr. Jones's loan as of January 1, 2015.
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Blake Miller recently received his monthly MasterCard bill for the period June 1-30, 2021, and wants to verify the monthly finance charge calculation, which is assessed at a rate of 23 percent per year and based on ADBs, including new purchases. His outstanding balance, purchases, and payments are as follows: Previous Balance: $303 Purchases: Payments: June 4 $111 June 21 $35 June 12 $45 June 20 $127 June 26 $43 What are his ADB and finance charges for the period? (Use a table like the one in Exhibit 6.7 for your calculations.) Round the answers to the nearest cent. ADB: $ Finance charges: $
On March 1, 2015 Mr. A obtains a loan of P1, 500 from Mr. B and signs a note promising to pay the principal and accumulated simple interest at the rate of 5% at the end of 120 days. On May 15, 2015, Mr. B discounts the note at the bank whose discount rate is 6%. What does he receive? A price tag of P 1200 is payable in 60 days but if paid within 30 days , it will have a 3% discount. Find the rate of interest. Discount 1650 for 4 months at 6% simple interest. What is the discount? Find the amount due at the end of 15 months whose present value is P 2, 000 at 5% simple discount? Compute the discount if P2, 000 is discounted for 6 months at 8% simple interest.
James lends Henry 500,000. He must repay the loan with 192 end of month payments with the nominal rate of interest being 4.8% convertible monthly. The first years payments are X, and each successive years payments are 10% greater than the year before. The origination date of the loan is January 1 2014. (a) Find the total interest paid. (b) Find the total interest paid for the month of January. (c) Find the proportion of interest paid for the month of January.

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