Q: what is the amount (in $) of interest on the loan?
A: Simple interest are calculated on the basis of principal amount of loan. Simple interest does not…
Q: A firm borrowed $50,000 from a mortgage bank. The terms of the loan specify quarterly payments for a…
A: Effective annual rate: It can be defined as an equivalent interest rate that is already provided for…
Q: A ski company takes out a $400,000 loan from a bank. The bank requires eight equal repayments of the…
A: Introduction: Non current liabilities: Non current liabilities ae to be shown in Balance sheet.…
Q: A company borrowed $18,000 paying interest at 6% compounded semi-annually. If the loan is repaid by…
A: For loans, outstanding balance refers to amount which is payable towards lender at a given point of…
Q: NTA Co. borrowed P100,000 for six months from the bank. The rate is prime plus 1 percent. The prime…
A: Compounding of interest means, interest is received on principal as well as the earned interest…
Q: A customer takes out a loan of $150,000 on January 1, with a maturity date of 36 months, and an…
A: Interest on loan:-It is the rate levy on the initial amount of loan and this is the additional…
Q: A financial institution made a $2,000,000 1-year discount loan at 11% interest, requiring a…
A: Effective interest rate on the loan with compensatory balance is always higher than the stated…
Q: Prepare the following calculations. principle on a note is $ 4,000, interest rate is 5%, time is 2…
A: 1. Interest = Principle x Interest rate x Time in Years = $4000 x 5% x 2 = $400 2. Interest =…
Q: Sterling Inc. has two long-term notes outstanding. One is a five-year note for $50,000. An equal…
A: The balance sheet represents the financial position of the business with assets and liabilities on a…
Q: A local business received a $45,000 loan at 4.95% compounded semi-annually. The business settled the…
A: Here, Value of Loan is $45,000 Interest Rate is 4.95% Monthly Payment is $650 Compounding Period is…
Q: Martinez Sporting Goods borrows $4,500, at 5% interest, for 120 days. Use the exact interest method…
A: Interest amount is the fixed amount that the lender will charge for lending some amount for certain…
Q: ABC’s bank offered a loan with conditions of a P5,000,000 face amount, 6-month term, 4% interest…
A: Effective annual interest rate is the interest rate which an investor expects in a year after taking…
Q: Earth Company assigned P3,000,000 of accounts receivable as collateral for a P2,000,000 loan with a…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: A company issues 4% loan notes with a nominal value of $20,000,000. The loan notes are issued at a…
A: Loan Notes: Loan notes or loan stocks are financial instruments that helps the issuer to raise…
Q: Assume Credins Bank made a €10 million, 1-year discount loan at 7% interest, requiring a…
A: Discount loan is a the loan in which interest is deducted from loan amount. Effective annual rate on…
Q: Automotive Excellence Inc. borrowed $18,000.00 on june 21 with an interest rate of 8.9% per annum.…
A:
Q: A company has a $500,000 30 year fixed loan payable at an interest rate of 4% monthly loan payments…
A: The entry for first month loan payment are as follows
Q: H. CANSY Merchandising borrowed P800,000 from ABC Bank at 10% simple interest or one year and six…
A: H) Amount borrowed (A) = P 800000 r = 10% simple interest rate n = 1 year 6 months = 1.5 years
Q: A local business received a $45,000 loan at 4.95% compounded monthly. The business settled the loan…
A: Loan repayments of equal amounts can be defined as an annuity. The principal amount of loan is the…
Q: A credit is paid as follows: a down payment corresponding to 30% of the value of the credit, 16…
A: Fist we need to calculate present value of all payments starting at 3 months after by using annuity…
Q: July 1, Bee Company will need a fixed interest rate loan of P1,200,000 for 6 months starting on…
A: A company can borrow money from the bank if the company needs money for the business. The bank will…
Q: Anderson Co. issued a $55,000, 60-day, discounted note to National Bank. The discount rate is 6%. At…
A: In the above case, the borrower must pay the par value at the maturity which is $55,000. The…
Q: Determine the following: The rate of simple interest. The corresponding discount rate.
A: Simple Interest: It is the interest amount calculated by charging the interest rate on the…
Q: Sunlight Growers borrows $250,000 from a bank at a 4% annual interest rate. The loan is due in three…
A: Formula: Interest amount = Principal amount x Interest rate x Time period
Q: On January 1, 20x1, Next Co. obtains a P4,000,000 bank loan due on December 31, 20x4. Interest of…
A:
Q: The bank statement opposite shows transactions over a one-month period for a savings account that…
A: Interest on savings account is calculated on daily balance in the account.
Q: In reporting the note in Karen Company statement of financial position, prior to maturity what rate…
A: Prime Rate is the interest rate charged by commercial banks to their most creditworthy customers.
Q: Jhar Industries has borrowed $125,000 under a line-of-credit agreement. While the company normally…
A: Borrowed Amount is $125,000 Amount to be maintained in lenders account is $15,000 Compensating…
Q: What is the correct debit/credit entry for... Company borrows $3 million from a bank with interest…
A: There are 3 golden rules for recording journal entry : 1. Debit what comes in , Credit what goes out…
Q: Bulldogs Inc. loaned a certain amount from a reputable bank for a term of one year at 8% quoted rate…
A: Compensating loan is a provision that the bank asks the loan taker to maintain as a security when…
Q: A bank charges an interest rate of interest is 6% compounded annually. A customer takes a loan of…
A: In order to find the outstanding balance one has to deduct the payment from the loan amount.
Q: A bank gives6-month 7.2% interest rate compounded monthly(the interest rate is that the bank applies…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: Moon Company assigned P1,500,000 of accounts receivable as collateral for a P1,000,000 loan with a…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: Canliss Mining Company borrowed money from a local bank. The note the company signed requires five…
A: Given the certain rate of return, present value (PV) is the current value of a future sum of money…
Q: What are the correct portions assigned to principal interest of the final payment?
A: Loan (mortgage) amortization schedule refers to a schedule which is prepared to shows the periodic…
Q: months. What is t
A: The outstanding principle after the 10th payment can be calculated as follows :
Q: A company has borrowed $210,000 under a line-of credit agreement. It must pay a stated interest rate…
A: The loan can be taken from the organized banks and through the local lenders. The lender of the…
Q: Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual…
A: The accrued interest is the interest due for payment but not paid yet by the business yet.
Q: Jack Abrams borrowed $8,000 for nine months at an interest rate of 7% (simple interest). The bank…
A: Actual interest rate is computed below:
Q: Canliss Mining Company borrowed money from a local bank. The note the company signed requires five…
A: Solution : Calculate the PV of the Ordinary Annuity: Payment $10,000 n 5 i 7% Present…
Q: A company lends its supplier $154,000 for 3 years at a 10% annual interest rate. Interest payments…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: A bank charges a 12% bank discount on short-term loans. A borrower needs GH¢2000 cash to be repaid…
A:
Q: Bulldogs Inc. loaned a certain amount from a reputable bank for a term of one year at 8% quoted rate…
A: Calculation of Effective rate of interest EIR = Interest / usable fund x 12/12 = 33200 /…
Q: Cooper Stereos has a $22,500 line of credit which charges an annual percentage rate of prime rate…
A: The calculation is:
Q: ABC’s bank offered a loan with conditions of a P5,000,000 face amount, 6-month term, 4% interest…
A: The annual effective rate is the actual rate of interest which is implied on the principal amount.…
Q: A note with a face value of BD 2,600 will mature after 3 Years from today is sold to a bank that…
A: Given information is: Face value of Note = BD 2600 Period = 3 years Compound interest rate = 6% Bank…
Q: A local restaurant decides to take out an amortized loan as follows: Amount of loan = $50,000;…
A: As per our guidelines, we will answer the first question. Please repost the remaining questions…
A company received a P 500,000 line of credit from its bank. Some information about the credit line is as follows:
Stated interest rate 10%
Compensating balance requirement 20%
Assuming that the company drew down the entire amount at the beginning of the year, and that the loan is discounted, what is the effective interest rate on the loan?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- 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. $2,383A company collects an honored note with a maturity date of 24 months from establishment, a 10% interest rate, and an initial loan amount of $30,000. Which accounts are used to record collection of the honored note at maturity date? A. Interest Revenue, Interest Expense, Cash B. Interest Receivable, Cash, Notes Receivable C. Interest Revenue, Interest Receivable, Cash, Notes Receivable D. Notes Receivable, Interest Revenue, Cash, Interest ExpenseA ski company takes out a $400,000 loan from a bank. The bank requires eight equal repayments of the loan principal, paid annually. Assume no interest is paid or accumulated on the loan until the final repayment. How much of the loan principal is considered a current portion of a noncurrent note payable in year 3? A. $50,000 B. $150,000 C. $100,000 D. $250,000
- Everglades Consultants takes out a loan in the amount of $375,000 on April 1. The terms of the loan include a repayment of principal in eight, equal installments, paid annually from the April 1 date. The annual interest rate on the loan is 5%, recognized on December 31. (Round answers to the nearest cent, if needed.) A. Compute the interest recognized as of December 31 in year 1. B. Compute the principal due in year 1.Cost of Bank Loan On March 1, Minnerly Motors obtains a business loan from a local bank. The loan is a 25,000 interest-only loan with a nominal rate of 11%. Interest is calculated on a simple interest basis with a 365-day year. What is Minnerlys interest charge for the first month (assuming 31 days in the month)?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 bank offered a 1-year loan to a commercial customer. The instrument is a discounted note with a nominal rate of 13%. What is the effective interest rate to the borrower? 13.20% 14.94% 12.00% 10.71% 13.64%A company has borrowed $210,000 under a line-of credit agreement. It must pay a stated interest rate of 12% paid at maturity and maintain, in its checking account, a compensating balance equal to 14% of the amount borrowed. a. Calculate the compensating balance amount. b. Calculate the effective interest rate? c. Calculate the effective interest rate if the interest paid in advance?A bank is offering a loan of $20,000 with an interest rate of 9%, payable with monthly payments over a 4-year period. a. Calculate the monthly payment required to repay the loan. b. This bank also charges a loan fee of 4% of the amount of the loan, payable at the time of the closing of the loan (that is, at the time the borrower receives the money). What effective interest rate is the bank charging?
- A bank charges 11% simple interest in advance (that is 11% bank discount) on short term loans. Find the sum received by the borrower who request (i) GH¢900 for 90days, (ii) GH¢1500 from May 3 to October 15.A company received in payment for the merchandise sold an interest bearing note with a face amount of 100,000, an annual interest rate of 12%, and a term of 6 months. The company sold this note to bank, at discount rate of 15%, when the note had 90 days remaining to maturity. How much interest expense should the company report as a result of discounting, assuming the discounting is accounted for as a secured borrowing?NOP Co. has agreed to the following loan proposal by a bank:▪ Stated interest rate of 10% on a one-year discounted note ▪ 15% of the loan as compensating balance with zero-interest current account to be maintained with the bank. ▪ The loan will have net proceeds of P1,500,000. Required:1. How much is the principal amount of the loan?