need june 30 paymentoct 10 payment oct 31 interesrt Note: The October 10 payment is not enough to cover the interest accrued to October 10. Nothing can be deducted from theprincipal, but the interest is not added to the principal, the interest is carried over.October 31 Interest PaymentCalculate the interest accrued to October 31. (Inclusive)Add the interest plus the unpaid interest from October 10.Check The Continental Bank made a loan of $20,000 on March 25 to Dr. Hirsch to purchase equipment for her office. The loan was securedby a demand loan (note?) subject to a variable rate of interest that was 7% on March 25. The rate of interest was raised to 8.5%effective July 1 and to 9.5% effective September 1. Dr. Hirsch made partial payments on the loan as follows: $600 on May 5; $800 onJune 30; and $400 on October 10. The terms of the note require payment of any accrued interest up to, and including, October 31.How much must Dr. Hirsch pay on October 31? (Use the Declining Balance Method)May 5 PaymentCalculate the interest accrued to May 5.Calculate the amount of the payment that can be applied to the principal.Calculate the remaining principal.June 30 PaymentCalculate the interest accrued to June 30.Calculate the amount of the payment that can be applied to the principal.Calculate the remaining principal.October 10 PaymentCalculate the interest accrued to July 1.Calculate the interest accrued to September 1.Calculate the interest accrued to October 10.Calculate the amount of the payment that can be applied to the principal.(A negative number.)Calculate the remaining principal.Note: The October 10 payment is not enough to cover the interest accrued to October 10. Nothing can be deducted from the

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Answered: The Continental Bank made a loan of…

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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The Continental Bank made a loan of $ 24 comma 000.00 on March 10 to Dr. Hirsch to purchase equipment for her office. The loan was secured by a demand loan subject to a variable rate of interest that was 5% on March 10. The rate of interest was raised to 5.25% effective July 1 and to 5.75% effective September 1. Dr. Hirsch made partial payments on the loan as follows: $1000 on May 24; $700 on June 28; and $300 on October 22. Each payment is first applied to any accumulated interest. Any remainder is then used to reduce the outstanding principal. The terms of the note require payment on October 31 of any interest not paid off by partial payments. How much must Dr. Hirsch pay on October 31 ? Question content area bottom Part 1 Dr. Hirsch must pay $ enter your response here on October 31. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
Pamela borrowed $12,000 for investment purposes on March 12 on a demand note providing for a variable rate of interest and payment of any accrued interest on December 31. She repaid $1,230 on June 17, $1,880 on September 10, and $3,460 on November 8. How much is the final payment on December 31 if the rate of interest was 11.5% on March 12, 8.75% effective August 1, and 6.45% effective October 1? (Use the Declining Balance Approach) June 17 Payment Calculate 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 Payment Calculate 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 Payment Calculate 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…
Dirk Ward borrowed $12,000.00 for investment purposes on May 19 on a demand note providing for a varlable rate of interest and payment of any accrued interest on December 31. He paid $900 on June 17, $100 on September 11, and $400 on November 24. How much is the accrued interest on December 31 if the rate of interest was 4% on May 19, 4 25% effective August 1, and 4.75% effective November 1? The accrued interest on December 31 is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
On June 15, Julio borrowed $950.00 from Sheridan Credit Union at 6.1% per annum calculated on the daily balance. He gave the credit union six cheques for $150 00 dated the 15th of each of the next six months starting July 15 and a cheque dated January 15 for the remaining balance to cover payment of interest and repayment of principal. 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.) Balance Before Payment $950.00 Payment Number 0 June 15 1 July 15 Amount Paid $150.00 Interest Paid Principal Repaid Balance After Payment. $950.00
Dirk Ward borrowed $15,000 for investment purposes on May 10 on a demand note providing for a variable rate of interest and payment of any accrued interest up to, and including, December 31. He paid $390 on June 25, $150 on September 20, and $200 on November 5. How much is the accrued interest on December 31 if the rate of interest was 7.5% on May 10, 6% effective August 1, and 5% effective November 1? (Use the Declining Balance Method) June 25 Payment Calculate the interest accrued to June 25. Calculate the amount of the payment that can be applied to the principal. Calculate the remaining principal. September 20 Payment Calculate the interest accrued to August 1. Calculate the interest accrued to September 20. Calculate the amount of the payment that can be applied to the principal. (a negative number) Calculate the remaining principal. The September 20 payment is not enough to cover the interest accrued to September 20. Nothing can be deducted from the principal, but the interest is…
Mrs. Chen has been approved for a personal (revolving) line of credit with National Bank at prime plus 2%. On the 15th of each month, interest is calculated (up to but not including the 15) and deducted from her chequing account. If the initial loan of $25,000 on July 2 was followed by a further advance of $30,000 on July 28, how much interest was charged on August 15. The prime rate was at 3% on July 2 and fell to 2.75% on August 5. Show all rough work (complete the table filling in all blank information) Period Number of days Principal ($) Rate (%) Interest ($) $25,000 x 0.05 x 13/365 = 44.5205 July 2-15 13 25,000 5.00 Total (Interest Due on Aug 15): Paragraph BIU
Ms. Wadeson obtained a $15,000 demand loan from TD Canada Trust on May 23 to purchase a car. The interest rate on the loan was prime plus 2%. The loan required payments of $700 on the fifteenth of each month, beginning June 15. The prime rate was 4.5% at the outset, dropped to 4.25% on July 26, and then jumped by 0.5% on September 14. Prepare a loan repayment schedule showing the details of the first four payments.
Dirk Ward borrowed $12,000.00 for investment purposes on May 8 on a demand note providing for a variable rate of interest and payment of any accrued interest on December 31. He paid $600 on June 13, $200 on September 15. and $800 on November 14. How much is the accrued interest on December 31 if the rate of interest was 8% on May 8, 8.4% effective August 1, and 8.7% effective November 1? The accrued interest on December 31 is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
During the year ended December 31, SC engaged in the following transactions involving notes payable. Aug. 6 Borrowed $12,000 from MGB, signing a 45-day, 12 percent note payable Sept. 16 Purchased office equipment from Seawald Equipment. The invoice amount was $18,000, and Seawald agreed to accept, as full payment, a 10 percent, 3 months note for the invoice amount. Sept. 20 Paid MGB the note plus accrued interest. Nov. 1 Borrowed $250,000 from Mike Swanson, a major corporate stockholder. The corporation issued Swanson a $250,000, 15 percent, 90 day note payable. Dec. 1 Purchased merchandise inventory in the amount of $5,0000 from Gathman Corporation. Gathman accepted a 90-day, 14 percent note as full settlement of the purchase. Swanson corporation uses perpetual inventory system. Dec. 16 The $18,000 note payable to replace the note that matured. Prepare journal entries (in general journal form) to record these transactions. Use a 360-day year in making the interest calculation Prepare…
Dirk Ward borrowed $14,000.00 for investment purposes on May 6 on a demand note providing for a variable rate of interest and payment of any accrued interest on December 31. He paid $800 on June 6, $100 on September 23, and $900 on November 26. How much is the accrued interest on December 31 if the rate of interest was 4% on May 6, 4.3% effective August 1, and 4.7% effective November 1 The accrued interest on December 31 is $
he following selected transactions relate to liabilities of Food Emporium whose fiscal year ends on December 31. January 26 Negotiated a line of credit with City Bank that can be renewed annually upon bank approval. The amount available under the line of credit is $4.70 million at the bank's prime rate. March 1 Arranged a six-month bank loan of $380,000 with City Bank under the line of credit agreement. Interest at the prime rate of 9% is payable at maturity. September 1 Paid the 9% note at maturity. Record the appropriate entries, if any, on January 26, March 1, and September 1. (Enter your answers in dollars, not in millions. Do not round intermediate calculations. If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) Negotiated a line of credit with City Bank that can be renewed annually upon bank approval. The amount available under the line of credit is $4.70 million at the bank's…
Rosewood Company made a loan of $12,200 to one of the company's employees on April 1, Year 1. The one-year note carried a 6% rate of interest. What is the amount of interest revenue that Rosewood would report in Year 1 and Year 2, respectively? Multiple Choice $0 in Year 1 and $732 in Year 2 $732 in Year 1 and $0 in Year 2 $183 in Year 1 and $549 in Year 2 $549 in Year 1 and $183 in Year 2

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