1. On July 15, 1996, what will John receive on selling note to Ben to whom money is worth 4%compounded semiannually?July 15, 1995Three years from date, I promise to pay John Ordonez an orderPHPB,000 with accumulated interests from date at 3%compounded semiannually.(Signed) Samuel Garcia2. P25,000 was borrowed on May 15, 1996. It was to be paid on August 15, 1999 with accumulated interest at6% compounded quarterly. No payment will be made until August 15, 2000. What is due then if the creditordemands that interest shall be at the rate of 8% compounded semiannually after August 15, 1999?3. If money is worth 5 % % compounded semiannually, which obligation is the more valuable: a) e 7,500due at the end of 2 years, or b) 8,000 due at the end of 3 years?

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Answered: 1. On July 15, 1996, what will John…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 1PA: On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10%...

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1. On July 15, 1996, what will John receive on selling note to Ben to whom money is worth 4% compounded semiannually? July 15, 1995 Three years from date, I promise to pay John Ordonez an order PHP8,000 with accumulated interests from date at 3% compounded semiannually. (Signed) Samuel Garcia