What is the interest expense for the first year?
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Jane company bought a new machine and agreed to pay in equal annual installment of P150,000 at the end of each of the next 5 years. The prevailing interest rate for this type of transaction is 12%. The rpesent value of an ordinary annuity of 1 at 12% for five periods is 3.60. The future amount of an ordinary annuity of 1 at 12% for five periods is 6.35. The present value of P1 at 12% for five periods is 0.567. What is the interest expense for the first year?
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- 2. Jeanneth company bought a new machine and agreed to pay in equal annual installment of P300,000 at the end of each of the next 5 years. The prevailing interest rate for this type of transaction is 12%. The rpesent value of an ordinary annuity of 1 at 12% for five periods is 3.60. The future amount of an ordinary annuity of 1 at 12% for five periods is 6.35. The present value of P1 at 12% for five periods is 0.567. What is the interest expense for the first year?Janess company bought a new machine and agreed to pay in equal annual installment of P300,000 at the end of each of the next 5 years. The prevailing interest rate for this type of transaction is 12%. The rpesent value of an ordinary annuity of 1 at 12% for five periods is 3.60. The future amount of an ordinary annuity of 1 at 12% for five periods is 6.35. The present value of P1 at 12% for five periods is 0.567. What amount should be reported as note payable if financial statements were prepared today?in equal annual installment of P600,000 at the end of each of Joshua Company bought a new machine and agreed to pay in equal annual installment of P600,000 at the end of each of the next five years. The prevailing interest rate for this type of transaction is 12%. The present value of an ordinary annuity of 1 at 12% for five periods is 3.60. The future amount of an ordinary annuity of i at 12% for five periods is 6.35. The present value of 1 at 12% for five periods is 0.567. 1. What amount should be reported as note payable if financial statements were prepared today? a. 1,700,000 b. 2,160,000 c. 3,000,000 d. 3,810,000 2. What is the interest expense for the first year? a. 259,200 b. 187,200 c. 360,000 d. 457,200
- 20. Jane company bought a new machine and agreed to pay in equal annual installment of P150,000 at the end of each of the next 5 years. The prevailing interest rate for this type of transaction is 12%. The present value of an ordinary annuity of 1 at 12% for five periods is 3.60. The future amount of an ordinary annuity of 1 at 12% for five periods is 6.35. The present value of P1 at 12% for five periods is 0.567. What is the interest expense for the first year?An annuity contract provides for the payment of P2,200 at the end of every month for 10 years. Money is worth 7% compounded semi-annually. What is the conversion period A.m=1 B.m=2 C.m=4 D.m=6 What is the amount of the annuity at the end of 10 years? A.P3,838,328.45 B.P3,670,994.35 C.P380,786.58 D.P378,698.24An amount of P100,000 was borrowed and was to be repaid in ten installments at the end of every year thereafter with each payment P1,000 more than the preceding. If interest is 12% compounded annually, determine the amount of first payment paid by the borrower. P12,000 O P11,342.26 P11,746.35 O P14,113.76
- Kirk Company purchased equipment by making a down payment of P400, 000 and issuing a note payable for P1, 800,000. A payment of P600, 000 is to be made at the end each year for three years. Theapplicable rate of interest is 8%. The present value of an ordinary annuity of 1 for three years at 8% is2.58, and the present value for the future amount of a single sum for three years at 8% is .735. Shippingcharges for the equipment of P200, 000 and installation charges of P350, 000 were incurred. What is thecapitalized cost of the equipment?An annual payment of P14 000 is made with interest rate of 10% compounded quarterly for 16 years. 1. Determine the present worth considering annuity due. 2. Compute the difference of the future amounts of the annuity due and ordinary annuity. 3. If the first payment was made at the end of the 10th year, determine the present worth considering ordinary annuity.2. Find the accumulated amount of the ordinary annuity paying an amortization of P1,000 per month at a rate of 12% compounded monthly for 5 years.
- Electro Corporation bought a new machine and agreed to pay for it in equal annual installments of $5,000 at the end of each of the next 5 years. Assume a prevailing interest rate of 15%. The present value of an ordinary annuity of $1 at 15% for 5 periods is 3.35. The future amount of an ordinary annuity of $1 at 15% for 5 periods is 6.74. The present value of $1 at 15% for 5 periods is O. 5. How much should Electro record as the cost of the machine? a. $12,500 b. $16,750 c. $25,000 d. $33,70013. A businessman borrowed P750,000 with interest at a rate of 7% compounded semi- annually. He agrees to discharge his obligation by paying a series of 6 equal semi-annual payments, the first being due at the end of 6 ½ years. Find the semi-annual payment?A money is compounded annually at the rate of 6%, find the present value of a sequence of 12 semi-annual payments of P300.00 each, the first of which is due at the end of 4 1/2 years. O a. P1,875.04 O b. P1,758.04 O c. P1,578.04 O d. P1,587.04