A $7,000 non-interest-bearing promissory note is discounted at
10% compounded quarterly, two years before maturity. What...
A $7,000 non-interest-bearing promissory note is discounted at
10% compounded quarterly, two years before maturity. What are the
proceeds from the sale of the note?
A seven-year, $10,000 promissory note, dated May 1, 2007, with
interest at 12% compounded quarterly is discounted four years after
the date of issue at 16% compounded semi-annually. What are the
proceeds of the note?
Find the nominal annual rate of interest compounded quarterly
that is equal to an effective rate of 19.25%
$4,000 is due in five years. If money is worth 12% compounded
annually, what is the equivalent payment in two years that would
settle this debt?
A...
Canterbury Co. issues a discounted, non-interest-bearing note in
exchange for borrowed funds. Choose whether the cash received will
be higher or lower than the face value of the note, and whether the
effective annual interest rate will be higher or lower than the
discount rate:
Cash Received vs. Face Value of Note
Effective Rate vs. Discount Rate
a. Higher Lower
b. Lower Higher
c. Lower Lower
d. Higher Higher
How is Interest-Bearing Note different from Non-Interest
Bearing Note?
How are the journal entries different for each of
them? Provide examples of each joirnal entry.
1. The journal entry to record the payment at maturity of an
interest-bearing note is
A. debit Accounts Payable; credit Cash
B. debit Notes Payable and Interest Receivable; credit Cash
C. debit Notes Payable and Interest Expense; credit Cash
D. debit Cash;
credit Notes Payable
2. The entry to record the issuance of common stock at a price
above par includes a debit to
A. Common Stock
B. Paid-In Capital in Excess of Par—Common Stock
C. Cash
D. Organizational Expenses...
aa 9 year promissionary note of $1100 with interest of
3.8 % compounded quaterly was discounted at 6 % compounded semi
annually hielding proceeds of $7600. how many mnths befoe the due
date was the discounting rate
A debt of $10 000.00 with interest at 8% compounded
quarterly is to be repaid by equal payments at the end of every
three months for two years.
a) Calculate the size of the
monthly payments.
b) Construct an amortization
table.
c) Calculate the outstanding
balance after three payments.
Amortization
Table
Payment
Number
Amount
Paid
Interest Paid
Principal
Repaid
Outstanding
Principal Balance
0
1
2
3
4
5
6
7
8
Barbara borrowed $12 000.00 from the bank at...
You are saving $100
for two years with 10% interest rate (annually compounded).
a. What is FV at the
end of year 2?(and show the equation)
b. What is the
interest earned on interest? (and show the equation)
1) A 7%, 60-day note is discounted 15 days before the maturity
date. If the discount rate is 5.5% and the proceeds received are
RM997.77, find:
a) The amount of discount charged.
b) The discount date, if the maturity date of the note is 26
October 2018.
c) The face value of the note.
2) A 6%, 110-day note dated 31 August 2018 has a maturity
value of RM4,073.33. On 12 October 2018, the note is discounted and
the proceeds...
The interest rate on a $100,000 loan is 7.5% compounded
quarterly. What quarterly payments will reduce the balance to
$75,000 after five years? (Do not round intermediate
calculations and round your final answer to 2 decimal
places.)
What lump sum deposited today at 12% compounded quarterly for
10 years will yield the same final amount as deposits of $3000 at
the end of each 6-month period for 10 years at 10% compounded
semiannually?
The value of the lump sum is $___