Mr. Allan borrowed from Mr. Tan 2k on Jan. 1988 & P5k on Jan. 1989. For 3 consecutive yrs starting Jan. 1990 Mr. Allan paid P3k. If money is worth 12% compounded annually, what7)additional payment should Mr. Allan pay on Jan. 1993 to discharge his remaining liability?A businessman is considering the purchase of a machine that is expected to be obsolete in 4 yrs. The machine is worth P200k. The prevailing rate of interest is 16% compounded8)quarterly. His estimate of the annual income from the use of the machine is as follows:Year1234IncomeP80,000P75,000P60,000P85,000Should the businessman purchase the machine.

As per honor code, we’ll answer only one question at a time, we have answered the first question…

Answered: 7) Mr. Allan borrowed from Mr. Tan 2k…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 1EA: Halep Inc. borrowed $30,000 from Davis Bank and signed a 4-year note payable stating the interest...

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Similar questions

Grummet Company is acquiring a new wood lathe with a cash purchase price of $80,000. The Wood Master Industries (the manufacturer) has agreed to accept $23,500 at the end of each of the next 4 years. Based on this deal, how much interest will Grummet pay over the life of the loan? A. $94,000 B. $80,000 C. $23,500 D. $14,000
Using the information provided, what transaction represents the best application of the present value of an annuity due of $1? A. Falcon Products leases an office building for 8 years with annual lease payments of $100,000 to be made at the beginning of each year. B. Compass, Inc., signs a note of $32,000, which requires the company to pay back the principal plus interest in four years. C. Bahwat Company plans to deposit a lump sum of $100.000 for the construction of a solar farm In 4 years. D. NYC Industries leases a car for 4 yearly annual lease payments of $12,000, where payments are made at the end of each year.
Sharapovich Inc. borrowed $50,000 from Kerber Bank and signed a 5-year note payable stating the interest rate was 5% compounded annually. Sharapovich Inc. will make payments of $11,548.74 at the end of each year. Prepare an amortization table showing the principal and interest in each payment.
Halep Inc. borrowed $30,000 from Davis Bank and signed a 4-year note payable stating the interest rate was 4% compounded annually. Halep Inc. will make payments of $8,264.70 at the end of each year. Prepare an amortization table showing the principal and interest in each payment.
M purchased a small lot in a subdivision, paying P200,000 down and promising to pay P15.000 every 3 months for the next 10 years. The seller figured interest at 12% compounded quarterly. (Include the cash flow diagram) (a) What was the cash price of the lot? (b) If M missed the first 12 payments, what must he pay at the time the 13th is due to bring himself up to date? (c) After making 8 payments. M wished to discharge his remaining indebtedness by a single payment at the time when the 9th regular payment was due, what must he pay in addition to the regular payment then due? (d) If M missed the first 10 payments, what must he pay when the 11th payment is due to discharge his entire indebtedness? Ans (a) P546,722; (b) P234,270; (e) P300,006; (d) P479,948
M purchased a small lot in a subdivision. paying P200 000 down and promising to pay P15 000 every 3 months for the next 10 years. The seller figured interest at 12% compounded quarterly. (a) What was the cash price of the lot? (b) If M missed the first 12 payments what must he pay at the time the 13th is due to bring himself up to date? (c) After making 8 payments. M wished to discharge his remaining indebtedness by a single payment at the time when the 9th regular payment was due what must he pay in addition to the regular payment then due? Include the Cash Flow Diagram.
Miller invested P15,250 for 10 years and received P9,150 in simple interest. What was the rate of that investment? Nick borrowed P6000 at 9% simple interest fro 1 ½ years to repair his rice threshing-machine. Find the simple interest, future value, and equal monthly installments? Benjamin deposited P600 in a saving account that pays 4% simple interest. How long did it take for his deposit to earn an interest of P72. What amount was invested for 5 years at 2 ¼ % if it earned interest of P2,500? At what interest rate will P15,000 earn an interest of P2,500 at 1.8%?
M purchased a small lot in a subdivision, paying P200, 000 down and promising to pay P15, 000 every 3 months for the next 10 years. The seller figured interest at 12% compounded quarterly. (a) What was the cash price of the lot? (b) If M missed the first 12 payments, what must he pay at the time the 13th is due to bring him up to date? (c) After making 8 payments, M wished to discharge his remaining indebtedness by a single payment at the time when the 9th regular payment was due, what must he pay in addition to the regular payment then due? (d) If M missed the first 10 payments, what must he pay when the 11th payment is due to discharge his entire indebtedness?Include cashflow if possible
Mr. Lee purchased a small condominium. He paid P350,000 as a down payment and agreed to pay P35,000 every 3 months for 5 years. The car seller figured interest is at 12% compounded quarterly. What is the prize of the condominium? a) P 870,711.62 b) P 809,017.02 c) P 940,463.11 d) P 520,711.62
Mr. Lee purchased a small condominium. He paid P350,000 as down payment and agreed to pay P35,000 every 3 months for 5 years. The car seller figured interest is at 12% compounded quarterly. What is the prize of the condominium?a.)P870,711.62b.)P809,017.02c.)P940,463.11d.)P520,711.62
Carl borrowed P101,466 from his friend to pay for remodeling work on his house. He repaid the loan 20 months and 12 days later with simple interest at 1.36%. His friend then invested the proceeds in a bank for 10 years paying 5.83% compounded monthly. How much will his friend have at the end of the 10 years?
Carl borrowed P183,074 from his friend to pay for remodeling work on his house. He repaid the loan 14 months later with simple interest at 4.38%. His friend then invested the proceeds in a bank for 7 years paying 6.63% compounded quarterly. How much will his friend have at the end of the 7 years?Write your answer in two decimal places.

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