Pamela borrowed $18,000 for investment purposes on March 12 on a demand note providing for a variable rate of interest andpayment of any accrued interest on December 31. She repaid $1,780 on June 17, $1,810 on September 10, and $3,490 on November8. How much is the final payment on December 31 if the rate of interest was 10.5% on March 12, 7.75% effective August 1, and 5.45%effective October 1? (Use the Declining Balance Approach)June 17 PaymentCalculate the interest accrued to June 17.Calculate the amount of the payment that can be applied to the principal.Calculate the remaining principal.September 10 PaymentCalculate the interest accrued to August 1.Calculate the interest accrued to September 10.Calculate the amount of the payment that can be applied to the principal.Calculate the remaining principal.November 8 PaymentCalculate the interest accrued to October 1.Calculate the interest accrued to November 8.Calculate the amount of the payment that can be applied to the principal.Calculate the remaining principal. November 8 PaymentCalculate the interest accrued to October 1.Calculate the interest accrued to November 8.Calculate the amount of the payment that can be applied to the principal.Calculate the remaining principal.December 31 PaymentCalculate the interest accrued to December 31. (Not Inclusive)Calculate the payment required to pay off the loan on December 31.Note that is question is not the same as the last few questions.In the last few questions we were asked for the interest including the last day. (Inclusive)But in this question we are paying the loan off on December 31, so we do not charge interest for the last day.Check

Here, Borrowed Amount is $18,000 on March 12 Payment of $1,780 on June 17 Payment of $1,810 on…

Answered: Pamela borrowed $18,000 for investment…

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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Similar questions

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
(Round to the nearest cent as needed.)
Zoey signs a note to repay $10,000.00 plus 8% interest in 1 year. Four months before the note is due, the debt is commuted into 3 equal payments. The first payment is due immediately and the 2nd and 3rd payment are due 4 and 12 months from the date of commutation. The interest rate is set at 9% and the focal date 4 months from the date of commutation. Calculate the amount of the new payments.
On January 1, 2021, Norwood borrows $470,000 cash from a bank by signing a five-year installment note bearing 6% interest. The note requires equal payments of $111,575 each year on December 31. Required: 1. Complete an amortization table for this installment note. 2. Prepare the journal entries in which Norwood records the following: (a) Norwood borrows $470,000 cash by signing a five-year, 6% installment note. (b) Record the first installment payment on December 31, 2021. (c) Record the second installment payment on December 31, 2022. Complete this question by entering your answers in the tabs below. Req 1 Complete an amortization table for this installment note. Note: Round your intermediate calculations to the nearest dollar amount. Period Ending Date Req 2 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025 Total Beginning Balance Debit Interest Expense + Debit Notes Payable 6 of 6 Ending Balance Next > mnt
zack borrowed $30,000 at 9 % on July 23, 2020. He repaid $15,000 on October 21 and $10,000 on December 16. Find the final payment required on the February 12, 2021 using merchant’ rule?
Carla borrowed $1010.00 from the Central Bank at 8.8% per annum calculated on the monthly unpaid balance. She agreed to repay the loan in blended payments of $220.00 per month. Construct a complete repayment schedule for the loan including totals for Amount Paid, Interest Paid, and Principal Repaid. Complete the repayment schedule below. (Round to the nearest cent as needed.) Payment Number Balance Before Payment Amount Paid Interest Paid Principal Repaid Balance After Payment S1010.00 1 $1010.00 $220.00
A mother borrowed 180,378 with 0.09 compounded monthly and promised to pay the amount by 20 equal monthly installments which will start at the beginning of each period. Determine the monthly payment.
Ben borrows a loan of $6,000 at 11% per annum on March 10. He plans to pay it different smaller amounts when he has some cash available. He manages to pay $2,500 on June 30th, and another $,2000 on September 5th. If Raymond pays the balance on November 15, how much will be his final payment. Note: from March 10 to June 30=112 days (March=31-10+1=22 + Apr=30 + May=31 + June=29 = 112 days
On August 1, Rachael Westlake joined a Christmas Club. Her bank will automatically deduct $105 from her checking account at the end of each month and deposit it into her Christmas Club account, where it will earn 6 7 8 % interest. The account comes to term on December 1. (Round your answers to the nearest cent.) (a) Find the present value of the given annuity.$ (b) Interpret the present value of the given annuity. You would have to invest a lump sum of $ now instead of $105 per month.
Myerson borrowed $8,500 at 7% ordinary interest for 200 days. After 160 days, he made a partial payment of $5,000. What is the final amount due on the loan? $3,433.89 $3,630.56 $3,636.11 $3,793.72
Last month, En Bey borrowed P 25,000 at 12% interest rate. He repaid the loan in four installment payments. If he wanted to pay P 6,250 in the following three months and pay the remaining balance on the fourth month, compute the ordinary interest (with 360-day year) using unpaid-balance method.
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: $

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