6. From a borrower's perspective, interest if the fee paid on an amount of money, whether loaned or borrowed. 7. Ordinary simple interest is computed on the basis of one banker's year which is 366 days a year. 8. The original sum of money borrowed in a loan is known as the principal.
Q: A man borrowed ₱180 000 from a bank payable in two years. The bank discounted the loan by ₱30 000.…
A: Theoretical interest rate is an interest rate which is calculated on amount borrowed whereas actual…
Q: 2. A bank offers a 272 - day discounted loan at a simple discount rate of 12%. (a) How much money…
A: Solution Concept Simple interest rate is the rate that does not have the effect of compounding To…
Q: the interest rate on a loan charging $748 simple interest on a principal of $2750 after 8 years. 3.…
A: In this we need to use simple interest rate formula.
Q: 1. What is the market rate of interest at which the lender can loan proceeds if the borrower prepaid…
A: Market interest rate is the rate which is prevailing in the market at present.
Q: A bank charges 1 ½% per month on the unpaid balance for purchases made with its credit card. This is…
A: The equivalent effective annual rate can be calculated through the compounding interest formula. The…
Q: 4. You borrowed $10,000 on a 10% discounted loan for a period of 8 months. a. What is the loan's…
A: Mortgage/ Borrowings: A mortgage represents a credit given to the borrower by the lender for the…
Q: If the same two $15,000 deposits are made (at time 0 and end of year 4) into a differ account that…
A: i) If $15,000 invested at time 0 Considering time period is 5 years Solved using Financial…
Q: A corporation made a monthly payment on a bank loan of $550 which included interest of $50. What is…
A: Introduction When a bank loan is repaid, there are three accounts that are affected, Cash, Accounts…
Q: 8. On April 1, you opened a savings account at Main Street Savings Bank with a deposit of $817.25.…
A: A method of computing interest amounts in which the compounding effect was not considered by the…
Q: How to adjust this Accrued interest on loans payable 18,000
A: Accrued Interest: According to accounting principles, accumulated interest refers to the amount of…
Q: Bank A pays 10% interest compounded annually on deposits, while Bank B pays 9% compounded daily.…
A: Bank A interest = 10% annually compounded Bank B interest = 9% daily compounded (365 days of…
Q: A. How much is the amount of the loan? B. How much is the payment on the first period? C. For the…
A: The amount of the loan is the stated loan amount. The interest component can be calculated by…
Q: A bank loaned out $30,500, part of it at the rate of 6% annual interest, and the rest at 5% annual…
A: Suppose P be the amount loaned at 6%. Then $30500 - P will be amount loaned at 5% Interest on 6%…
Q: Miss S. Torres borrowed P65,450.00 from a savings and loan association that charges 6.73% simple…
A: The Simple Interest for a loan is paid on amount lent as ₱65,450. The interest amount for each…
Q: What is the maturity date of a loan for $8,000 at 15% exact interest taken out on June 5?
A: Given information is: Loan amount = $8000 Interest rate = 15% Interest amount = $240
Q: ven the annual interest rate and a line of an amortization schedule for that loan, complete the next…
A: Calculating Interest Rate Given, Annual Interest rate = 9% = 9/100 = 0.09 Payments are made monthly…
Q: Use the ordinary interest method to compute the time (in days) for the loan. Round your answer up to…
A: Interest is the amount charged by bank in consideration of advancing loan to its borrowers. It is…
Q: Bank A pays 5% interest compounded annually on deposits, while Bank B pays 4.8% compounded monthly.…
A: Effective annual rate(EAR) is the rate that is actually earned or paid on investment or loan. It…
Q: 1. A financing company charges 1.5% per month on a loan. Find the equivalent effective rate of…
A: The effective annual rate of interest (EAR) is calculated as the actual rate of return earned after…
Q: 2. If a nine-month term deposit at a bank earns a simple interest rate of 9% per annum, how much…
A: Simple interest is the type of interest that is not accumulated on the previous balance and…
Q: Lexi took out a loan from a loan shark with an interest rate of 5% bi-monthly, compounded…
A: Interest rate = 5% bi-monthly compounded semi-monthly Which means the interest rate is 5% every 2…
Q: Find the amount (in $) of interest on the loan.
A: Interest: It refers to the monetary charge paid by the borrower to the lender for taking a loan. It…
Q: a) What is the rebate fraction of a 36 month loan paid off after the 15th payment?
A: Solution: (a). Loans paid off after 15 th payment. Number of payments remaining = 36 - 15 = 21 Total…
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: Interview someone who borrowed from the bank, know how much is the rate pplied to the loan, term of…
A: A loan is made if, in return for the payment of both the principal and interest, you obtain cash or…
Q: a. What was the payment size? Round to the nearest cent b. What was the size of the interest portion…
A: Amortization: It represents the process of paying the loan by making periodic payments. These…
Q: Assume the following information for a car note: Original loan amount = $23,500 Annual interest rate…
A: Calculation of Principal Balance:The principal balance on the loan after six months is…
Q: 4- Bank America offers a stated annual interest rate of 5.0 percent, compounded quarterly, while…
A: To understand in which bank you should deposit your money, we need to calculate Effective interest…
Q: Jansen Carlo Odron made a loan on August 1, 1976 and repaid on November1, 1982. What lump-sum amount…
A: A single complete sum of money is known as a lump sum amount.
Q: (a) What is the rebate fraction of a 36 month loan paid off after the 13th payment? (b) What is…
A: Total loan period = 36 months Months completed =13 months Remainig months = total loan period -…
Q: A loan with a nominal value of ($3000) payable after (250) days. The debtor paid the amount before…
A: The discount rate is the interest rate which is charged to commercial banks and other institution…
Q: 1. Citibank pays 9% ordinary simple interest on a 30-day time deposit. How much money will the…
A: Future Value: A present asset's future value, abbreviated as FV, is the value that asset is expected…
Q: 2. Find the amount (in $) of interest on the loan
A: Interest: It is the monetary charge paid to the lender by the borrower for taking a loan. Interest…
Q: Find the amount (in $) of interest on the loan. Principal Rate (%) Time Interest $70,000 5 4 1 2…
A: The interest is the amount that is received or paid on the principal amount for the specified time…
Q: Compute the principal (in $) for the loan. Use ordinary interest when time is stated in days.…
A: Interest = Principal × rate of interest × time $1080 = principal × .12 × 1.5 year $1080 = principal…
Q: A man agreed to pay the loan he is borrowing from the bank in six (6) equal end of the year payments…
A: STEP 1 Given man agreed to pay loan to the bank in six equal payments:- Given information:- Rate of…
Q: Bank A pays 2% interest compoundedannually on deposits, while Bank B pays 1.75% compounded daily.a.…
A: Formula for EFF is: EFF = (1+r/n)^n - 1 where r is the nominal rate of interest & n is the…
Q: 4.) This refers to the number of years for which the money is borrowed or invested. A. Conversion…
A: 4) Any investment has the initial principal, interest rate and duration as the main factors to…
Q: 2. A loan of $94028.12 is repaid by monthly payments of $625.75. The interest rate charged is 5.1%…
A: Loan amount (PV) = $ 94028.12 Monthly payment (P) = $ 625.75 Annual interest rate = 5.1% Monthly…
Q: ( A)What is the rebate fraction of a 36 month loan paid off after the 12th payment? (b) What is…
A: Rebate fraction can be calculated by using this equation Rebate fraction =Sum of digit of remaining…
Q: he chart below shows the payments made towards paying off a $12,000 loan. How ch of the third…
A: Interest amount on loan = EMI amount (periodic equated payment) - principal portion
Q: Laura borrowed a total of $18000 from two different banks. one bank charged 6% simple interest and…
A: Simple interest method is easiest way to calculate interest. In this method interest is determined…
Q: A loan was made 3 years and 8 months ago at 7.5% simple interest. The principal amount of the loan…
A: A loan is a sort of debt that is taken on by an individual or another institution. The lender, which…
Q: Find the amount (in $) of interest on the loan. Principal Rate (%) Time Interest $13,400 9.4 5 3 4…
A: Principal = $13,400 Rate = 9.4% Time period = 5,3,4 Years
Q: 5. If a credit union pays 4.125% interest compounded quarterly, what is the effective rate of…
A: Interest rate (r) = 4.125% Number of compounding per year (m) = 4
Q: f the bank advertises 10.21% accounts that yield 9.84% annually. Find how often is the interest…
A: Given: Annual Percentage Rate: 10.21%Effective Annual Rate: 9.84% Required :Compute how often the…
Q: Bank A pays 4% interest compounded annually on deposits, while Bank B pays 3.5% compounded daily. a.…
A: Effective Annual Rate is the equivalent interest rate for nominal rate which is compounded multiple…
Q: If you are to pay P 3,000.00 for a debt made 2 months ago at the rate of 7% simple interest, what…
A: Simple Interest is the method in which we calculate the interest on a specific principal amount at a…
Q: A man borrows money from a bank which uses a simple discount rate of 14%. He signs a promissory note…
A: A promissory note refers to a financial instrument which contains a promise that one party will pay…
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- A 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 ExpenseReya paid Php 9,250 on a loan made 6 months before at 12% simple interest. Find the interest generated.What is the rate of interest?What is the future value?What is the term of the loan?What is the principal in the problem?Compute the principal (in $) for the loan. Use ordinary interest when time is stated in days. Principal Rate (%) Time Interest $ 11 1 1//2 years $495
- Bank A pays 2% interest compoundedannually on deposits, while Bank B pays 1.75% compounded daily.a. Based on the EAR (or EFF%), which bank should you use?b. Could your choice of banks be influenced by the fact that you might want to withdraw your funds during the year as opposed to at the end of the year? Assume that your funds must be left on deposit during an entire compounding period in order to receive any interest.2. Find the amount (in $) of interest on the loan. Principal Rate (%) Time Interest $60,000 7 5 1 2 years $Find the simple interest on a loan if $5,682.00 was borrowed at 11 3⁄4 % from July 1 to December 31 of the same year.
- How to adjust this Accrued interest on loans payable 18,000Ms. Kim borrowed an amount from a bank but she only recieved from the bank P1,340. She promised to pay the principal at the end of 9 months. If the corresponding discount rate or often referred toas the banker's discount is 13.73%, what is the amount borrowed?For the given principal, interest rate, and time period, determine the amount of interest that would be earned in an account paying simple interest. Also determine the amount of interest that would be earned in an account paying compound interest with interest compounded annually. Determine how much more interest would be earned in the account paying compound interest. Round to the nearest cent. Principal: $810 Rate: 4% Years: 17
- Which of the following is true of a fully amortized loan? A. The amount of the payment applied to the principal remains the same during the loan period. B. Equal amounts of the payment are appiled to the principal Interest, taxes, and insurance. C. Additional payments applied to the interest during the loan period reduce the number of monthly payments required. D. Additional payments applied to the principal during the loan period reduce the number of monthly payments requiredAn amount was borrowed from a bank at a simple interest rate of 12.41% and paid after 5 years and 7 months. What is the discount rate? If the paid amount is P33,874, how much money was borrowed? If the total accumulated interest is P10,845, what amount was paid?Ken borrowed $3400 from the bank for 20 months. The bank discounted the loan at 7.4%.How much was the interest?$Correct State your result to the nearest penny.How much did Ken receive from the bank?$Correct State your result to the nearest penny.What was the actual rate of interest?