A man borrowed a certain sum of money from a bank which charges interest at 18%, compounded quarterly. He promised to pay the principal and interest through 36 equal payments of PHP 4,000 at the end of each three months. How much did he borrow?

A man borrowed a certain sum of money from a bank which charges interest at 18%, compounded quarterly. He promised to pay the principal and interest through 36 equal payments of PHP 4,000 at the end of each three months. How much did he borrow?

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...

See similar textbooks

Related questions

Q: Transferring corporate assets to shareholders for less than fair market value is a form of Multiple…

A: Looting is the practice of obtaining or seizing items by force, usually during a military,…

Q: Suppose the market risk premium is 6% and the risk-free interest rate is 6%. Using the data in the…

A: Risk free rate = 6% Market risk premium = 6% Starbucks beta = 0.80 Hershey beta = 0.33 Autodesk beta…

Q: Croft Corporation has a target capital structure of 70 percent common stock and 30 percent debt. Its…

A: Common stock ratio (E) = 70% Debt ratio (D) = 30% Cost of equity (Ke) = 16% Cost of debt (Kd) = 8%…

Q: You are the founder of Finance Inure Sleep, a fintech company, and you were the only shareholder…

A: Given, in this question is the information regarding funding round of 3 series.

Q: deposit $200 at the end of each month for 10 years. If the account pays 7.5% compounded monthly, how…

A: Future Value of Annuity: It is the future worth of the current cash flow stream and is computed by…

Q: Green Grow Energies, Inc. reported a taxable income of $87,599,200 last year. What was their net…

A: 1) Corporate Taxes Paid: The corporate tax rate is 21%. So, Corporate tax = $87,599,200 * 21% =…

Q: of a derivative that pays off $100 after one year if a company has defaulted during the year is $5.…

A: Probabilities of hypothetical future events that were adjusted for risk are known as risk-neutral…

Q: 1. In broad terms, why is some risk diversifiable? Why are some risks nondiversifiable? Does it…

A: Unsystematic risk is a risk that is distinctive to a particular firm or industry. Nonsystematic risk…

Q: Kirk, Klein & Co. requires $108,000 fifteen years from now to retire a debt. A sinking fund (a) What…

A: Loan: It is the amount due to the lender by the borrower and the borrower pays periodic payments to…

Q: Debt crisis and solutions?

A: To run the business, corporations have to borrow the funds which will be repaid later with…

Q: Alternative E1 E2 Capital investment Annual expenses Useful life (years) Market value (at end of…

A: Concept . Future worth method is used in an investment situation where we need to compute the…

Q: A stock has a beta of 1.14, the expected return on the market is 10.8 percent, and the risk- free…

A: The expected return of the stock can be calculated with the help of CAPM equation

Q: |МАCHINE A MACHINE B FIRST COST |11,000 18,408 ANNUAL OPERATING COST 3,500 3,162 SALVAGE VALUE…

A: Concept. Annual worth method is commonly used for comparing alternatives. In this method, all the…

Q: (a) Calculate the payback period of each project. ( ) (b) Compute the net present value of the two…

A: Payback Period: It is the period in which the project returns its initial outlay/cost. The lower…

Q: P25,000 on top of his regular annual deposit. HoW much money can he withdraw from the fund ten years…

A: Time value of money (TVM) is used to measure the value of money at different point of time in the…

Q: 15,000 is invested in an account at time 0. At the end of 4 years, an additional $15,000 IS Hivested…

A: Here, To Find: Part a. Value in the account at the end of 10 years =? Part b. In which account the…

Q: Using the same begging portion of the above problem -- A cotton buyer will be making a purchase of…

A: The cash market and future market are interrelated to each but both moves in opposite directions so…

Q: The market risk premium is 5.41% and the yield on a Treasury bond is 1.02%. What is the fair return…

A: Solution:- Capital Asset Pricing Model (CAPM) is the model which helps to compute the fair return on…

Q: How much of each bond issue would you have to buy to immunize the portfolio?

A: For a portfolio to be immunized, the duration of assets should be equal to liabilities. This risk…

Q: LO3 Discuss the discounted payback rule and some of its shortcomings. LO4 Explain accounting rates…

A: The payback period is the amount of time it takes for the investment's benefit to recoup its cost,…

Q: Golden Corporation have the following information from its books: Sales P1,600,000 Credit sales 90%…

A: Sales = P1,600,000 Credit sales are 90% of sales Average Collection period is 30 days Assume number…

Q: 6. Calculate the capitalized cost of a project that has an initial cost of P3, 000,000 and an…

A: Capitalized cost is referred as an expenses that are added to the cost basis of the fixed asset on…

Q: Questions 1. What is the Zapatoes Inc's capital structure? What is the effect of an additional debt?…

A: Capital structure is defined as the combination of the debt as well as equity, which helps in…

Q: You have 3000 dollars to invest and you buy as many calls as you can on a stock called BOON, if…

A: Call option give you opportunity to buy stock on expiration but there is no obligation to buy the…

Q: Capital Investments Project DC Company is considering the purchase of a new machine. The price of…

A: Incremental Cash flow of new machine is determined. It is the increase in cash flow if new machine…

Q: A credit card has a 21.99% APR, a minimum monthly payment of 3.15%, and a current monthly statement…

A: A credit card is a pay later facility provided by the banks to its customers. Banks charge interest…

Q: Q3. Ricardo plans to own a 1 hectare lot after 10 years for an estimated cost of P5M. To accumulate…

A: Here, Required Amount (FV) at the end of 10th year to purchase lot is P5,000,000 Interest Rate (r)…

Q: Suppose a 15- year corporate bond has a 10% coupon rate and a $1,000 par value. Coupons are paid…

A: A Bond refers to an instrument that represents the loan being made by the investor to the company…

Q: Suppose you group all the stocks in the world into mutually exclusive portfolios (each stock is in…

A: Expected return on market portfolio This can be calculated by sum of the…

Q: Develop scenarios where a project manager has to cope with pressures from stakeholders with respect…

A: Every project has a budget and a timeline attached to it. Everything runs smoothly, on time, and…

Q: choice of recerving 590,000 now, or S47,000 now and anotner S03,000 six years from now. in terms of…

A: Present value is value of money today without interest that is equivalent to the today that of…

Q: 1. Based on the work of MM Propositions, why are levered firms usually more valuable than an…

A: (Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Three mutually exclusive projects, A, B, and C, each require $100,000, S62,500, and $75,000 initial…

A: Internal Rate of Return (IRR) of a project is the rate at which the present value of all the cash…

Q: You purchase a new airplane for your company for 1,800,000 pesos by putting 10% down and using…

Q: 4. How much money will accumulate that generates a cash flow of P1000 every year for the next 8…

A: A cash flow analysis is a financial statement that shows how much money flows into and out of your…

Q: arket value at the end of its life. Operating and maintenance expenses for the system are projected…

A: The capitalized cost of system is the present value of all cost of the system that would incur…

Q: Case A—firm uses only equity financing Case B—firm uses 35% debt with an 8% interest rate and 65%…

A: Debt is the amount of money that a company borrows which it has to pay back with interest. Equity is…

Q: An company uses a technology which it purchased for $15 million. Operating costs are $2 million per…

A: IRR stands for internal rate of return and refers to a method that is used for analyzing the…

Q: ILK has preferred stock selling for 97 percent of par that pays an 8 percent annual coupon. What…

A: The cost of preferred stock is calculated as ratio of preferred dividend and the preferred stock…

Q: discussion defining a skip person and to which type of transfers does the GSTT apply?, Define…

A: Taxable income is part of the total income used to calculate tax obligations for a particular tax…

Q: Styles Ms. Rahat hails from a business family. She is considering starting a supermarket with an…

A: " Hi, Thanks for the question. Since you asked multiple sub parts question, we will answer first…

Q: An industrial firm can purchase a special machine for $70,000. A down payment of $5,000 is required,…

A: Cost of Machine = $70,000 Down payment = $5,000 number of installments =…

Q: The employee credit union at State University is planning the allocation of funds for the coming…

A: Given: Loan Annual return Automobile loans(A) 9% Furniture loans(F) 11% Other secured…

Q: 2. What is the future worth of P600 deposited at the end of every quarter for 4 years if the…

A: The value of an asset at a specific date is referred to as its future value. It is the present value…

Q: 1.) Mr. Roanito wants to put money in an account that pays 5% interest each year, compounded…

A: Hi! Thank you for the question, As per the Honor Code, we are allowed to answer one question in case…

Q: Investment - Total Rate of Return. Bailee purchased 475 shares of Millersview Corp. at $22.78 and…

A: The sum of capital yield and the dividend yield is known as the total yield on stocks. The dividend…

Q: You believe that Rose, Inc., the stock is going to fall and you’ve decided to sell 1,300 shares…

A: Given, Number of shares 1300 Current price of share is $58 Initial margin is 60%

Q: What is the coupon payment? R What is the annual coupon rate? %

A: The coupon payment is the periodic interest that the bond pays to its investors. The present value…

Q: You are asked to invest $30 million in a bond portfolio consisting of only two bonds. Bond A has a…

A: Concept. Bond duration is way of measuring how much bond prices are likely to change if there is…

Q: 3. Pet Palace had a net income before taxes of $1,175,200. Calculate the net income after taxes.…

A: Net income after tax is calculated as net income before tax less taxes

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Sub-Cinema Inc. borrowed $10,000 on Jan. 1 and will repay the loan with 12 equal payments made at the end of the month for 12 months. The interest rate is 12% annually. If the monthly payments are $888.49, what is the journal entry to record the cash received on Jan. 1 and the first payment made on Jan. 31?
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.
Pickles R Us is a pickle farm located in the Northeast. The following transactions take place: A. On November 6, Pickles borrows $820,000 from a bank to cover the initial cost of expansion. Terms of the loan are payment due in six months from November 6, and annual interest rate of 3%. B. On December 12, Pickles borrows an additional $200,000 with payment due in three months from December 12, and an annual interest rate of 10%. C. Pickles pays its accounts in full on March 12, for the December 12 loan, and on May 6 for the November 6 loan. Record the journal entries to recognize the initial borrowings, and the two payments for Pickles.
Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual interest rate of 6%, and payable in four months. How much interest will Marathon Peanuts owe at the end of four months? A. $2,600 B. $7,800 C. $137,800 D. $132,600
Jain Enterprises honors a short-term note payable. Principal on the note is $425,000, with an annual interest rate of 3.5%, due in 6 months. What journal entry is created when Jain honors the note?
If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?
A man deposited Php 20,000 in a savings bank that pays 4 ½% compounded semi-annually for 2 years and 6 months. What is the compound amount at the end of the term?
Vincent borrows Php 4,800 with interest at 18% compounded quarterly. How much should he pay to the creditor after 4 years to pay off his debt?
Last month, En Bey borrowed P 25,000 at 12% interest rate. He repaid the loan in four installment payments. If he wanted to pay P 6,250 in the following three months and pay the remaining balance on the fourth month, compute the ordinary interest (with 360-day year) using unpaid-balance method.
A man borrowed Php200000 from his friend and agreed to pay years at an interest rate of 10% per annum. How much should the man deposit monthly in a bank in order to discharge his debt, if the bank offers 6% annual interest rate?
An engineer loans an amount of P500,000 at a local commercial bank at 4% compounded quarterly. How much is his monthly payment if he is required to pay at the end of each month for a period of 5 years?
Jack has borrowed money from his financial institution, and has agreed to pay $200 at the end of each month for six years. The bank charges interest on the loan at 6.6% compounded quarterly. How much did Jack borrow? How much is the cost of financing (The amount of interest to be paid)?