A man borrows money from a bank which uses a simple discount rate of 14%. He signs a promissory note promising to pay P500 per month at the end of the 4th, 6th and 7th months, respectively. Determine the amount he received from the bank.

A man borrows money from a bank which uses a simple discount rate of 14%. He signs a promissory note promising to pay P500 per month at the end of the 4th, 6th and 7th months, respectively. Determine the amount he received from the bank.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter17: Accounting For Notes And Interest

Section: Chapter Questions

Problem 1CE

See similar textbooks

Related questions

Q: Patrick went to a bank and obtained a personal loan with an interest rate of 4.00% compounded…

A: The real interest that an investor earns on the investment and a borrower pays on the loan after…

Q: arry borrowed from a bank of P25,000 for which he signed a promisory note to repay it at the end of…

A: The interest charged by the bank would be the amount written on the promissory note less the legal…

Q: A bank pays simple interest at the rate of 8% per year for certain deposits. If a customer deposits…

A: Formula: Interest amount = Deposit amount x Time period x Interest rate

Q: Bill deposits $100 into a bank account. His account is credited at a nominal discount rate of 4%…

A: Interest credited to the account of Bill and Cynthia at the end of the year will be $4 and $16…

Q: On March 1, 2015 Mr. A obtains a loan of P1, 500 from Mr. B and signs a note promising to pay the…

A: Note : will answer first question as exact one is not specified. The question is based on the…

Q: The bank requires that the Dotkoms pay their homeowner's insurance, property taxes, and mortgage in…

A: The term mortgage refers to the loan taken from bank against which bank against some collateral…

Q: Martinez Sporting Goods borrows $4,500, at 5% interest, for 120 days. Use the exact interest method…

A: Interest amount is the fixed amount that the lender will charge for lending some amount for certain…

Q: A person agreed with a bank to deposit an amount of 500 dinars at the end of each year starting from…

A: The compound value of money can be depicted as the amount of interest generated on interest earned…

Q: Suppose Jorge Otero has set up an annuity due with a certain credit union. At the beginning of each…

A: Future value = Present value ( 1 + rate of interest )Period Future value = Amount deposited * Future…

Q: Dan invested Php 25,000 in a time deposit account that earns 1.25% simple interest rate for 30 days.…

A: In finance interest can be simple interest or compound interest. Simple interest is that interest…

Q: A bank offers a 12% interest to be compounded annually. How much should a teacher deposit now if he…

A: Present value is the value of future cash flows discounted at a specified interest rate for a…

Q: Suppose Jorge Otero has set up an annuity due with a certain credit union. At the beginning of each…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: Jerome borrows ₱75,000 from the bank that advertises a 8% of simple interest rate and repays the…

A: Annual percentage Rate (APR) refers to an interest charged on an amount that is earned by investors.

Q: Jackie obtained a new credit card from a national bank, MBNA with a stated rate of 18% per year,…

A: The Compound interest is simply the interest on interest. It is the interest that is given on both…

Q: how much money is requested from the bank if the simple interest rate is 9.766% a. 36,857.114 b.…

A: Simple interest refers to the amount paid by the borrower to bank on the amount borrowed at a fixed…

Q: What are the proceeds (in $)?

A: A promissory note is a written form in which one party promises ta pay to other party for some…

Q: Determine the following: The rate of simple interest. The corresponding discount rate.

A: Simple Interest: It is the interest amount calculated by charging the interest rate on the…

Q: Suppose that you owe $2500 on a credit card that charges 18% APR and you pay either the…

A: The number of months it will take to pay off the loan can be seen from the amortization table.

Q: An employee borrows P50,000 for seven months at an interest rate of 12% per year. Find the interest…

A: Interest: It can be defined as the amount that is charged by the lender on the loan given to the…

Q: Will borrowed$1205 from his bank for 16 months using a 4.1%discount note. Determine how much…

A: The amount of money invested over a period of time with the assumption of investment growth at a…

Q: If an entrepreneur applies for a loan amounting to ₱ 500,000 in a bank, the simple interest of which…

A: Simple interest = Principal * Rate of interest*Time Rate of interest = Simple…

Q: Using the credit card, Abby purchased a bag amounting to ₱15,000 payable in 3 months at 12% per…

A: Table Showing Total Interest paid

Q: Suppose that you owe $2,000 on a credit card that charges 18% APR and you pay either the minimum 10%…

A: The time to pay off the debt, the installment, beginning, and ending balances can be seen from the…

Q: A man will deposit Php 200 with a savings and loan association at the beginning of each 3 months for…

A: Present value of deposit amount= Php 200 Time period (n)= 3 months for 9 years Interest rate= 5.5%…

Q: Collin borrowed $2100 from the bank for 21 months. The bank discounted the loan at 2.5%. How much…

A: Interest = Principal * Rate of Interest Amount received from Bank = Amount - Interest Interest =…

Q: Sean purchased an interest-bearing promissory note for $11,000.00 at 5.00% p.a., due in 90 days. If…

A: The promissory note refers to a debt instrument that is issued by a person who writes a note by…

Q: Ahmed Yehda borrowed $8,000, signing a promissory note for 2.5 years at 15% interest. What was the…

A: Promissory note is one of the ways to borrow the amount for a particular period and specific amount…

Q: Eugene is offered a 5% discount for immediate payment of a bill which is due in 90 days. What is the…

A: Simple interest rate is the rate which is calculated without taking any compounding frequency.

Q: Ken borrowed $3400 from the bank for 20 months. The bank discounted the loan at 7.4%. How much was…

A: Calculate the interest by multiplying amount borrowed , rate and the time period. Amount received…

Q: How much money is requested from the bank if the simple interest rate is 12. 987%?

A: Simple interest method is a method of computing interest on borrowed amount where interest is…

Q: A bank employee passed the ICWA examination and his salary was raised by P30,000 starting from the…

A: Annunuity per year is P30,000 Interest rate compounded semi annually is 6% Time period is 20 years…

Q: Alana Olsen borrowed $5,000 for 90 days from First Bank. The bankdiscounted the note at 7 percent.a.…

A: Borrowed amount=$5000Discount rate=7%Time period=90days

Q: Suppose Jorge Otero has set up an annuity due with a certain credit union. At the beginning of each…

A: given, annuity due, monthly payment = $130 number of period= 16 the table given in the question is…

Q: An automobile financier claims to be lending money at simple interest, but he includes the interest…

A: Following is the answer to the question

Q: A man borrows money from a bank which uses a simple discount rate of 14%. He signs a promissory note…

A: “Since you have asked multiple questions, we will solve the one question for you. If you want any…

Q: Engr. Salvador has to pay her bill in credit card in instalment basis. First payment is P50,000 at…

A: Calculation of total payment of Engr. Salvador after 10 years at the rate of 10% per annum: Payment…

Q: Jerome obtains Php 15,000 as the proceeds of a 300-day loan from a bank charging 5% Discount. What…

A: A loan simply refers to the amount borrowed from a lender. The lender in such a scenario might be a…

Q: A man borrowed Php 8000 from RCBC and agreed to pay the loan at the end of 9 months. The bank…

A: AMount borrowed is Php 8000 Time period is 9 months Amount received after discount is Php 5000 To…

Q: Ms. Kim borrowed an amount from a bank but she only recieved from the bank P1,340. She promised to…

A: Actual amount received = P 1340 Discount rate = 13.73%

Q: A student decides to make annual payments of Php 1619 into a bank that has a nominal interest of 4%…

A: Formula Future value = P*((1+i)n-1)/i Where P = Annual payment i.e. Php 1619 i = Annual interest…

Q: A man borrowed P18,400.00 from a credit union that charges 8% simple interest for 1 year and 9…

A: Total months = 12 + 9 = 21 months

Q: A man borrows money from a bank but he only received 83% of the amount requested. He signs a…

A: Simple interest rate is computed on the principal portion of the amount borrowed. Unlike compound…

Q: bank offers 5%compound interest calculated on half - yearly basis. A customer deposit 1600.00 each…

A: In this question future value is to be find out. Future value is the value of an asset grown to some…

Q: A merchant buys a bill of goods requiring the payment of 1500php at the end of 180 days. He is…

A: Rate of discount=5%Purchase price=1500

Q: Suppose Jorge Otero has set up an annuity due with a certain credit union. At the beginning of each…

A: Month deposit (P) = $ 130 Interest rate = 6% Monthly interest rate (r) = 6%/12 = 0.50% Period (n) =…

Q: Vincent borrows Php 4,800 with interest at 18% compounded quarterly. How much should he pay to the…

A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…

Q: Engr. De Robles borrowed Php 10,000 from a bank and promised to pay the amount for 1 year. But he…

A: Proceeds = Php 9600 Discount = Php 400 Borrowed amount (P) = Php 10000 n = 1 year Let the discount…

Question

Expert Solution

This question has been solved!

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

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Miss Evilla borrowed money from a bank. She receives from the bank P1,340.00 and promised to pay P1,500.00 at the end of 9 months. Determine the corresponding discount rate or often referred to as the “banker’s discount”?
A man borrows money from a bank which uses a simple discount rate of 14%. He signs a promissory note promising to pay P500.00 per month at the end of 4th, 6th, and 7th month respectively. Determine the amount of money that he received from the bank. a. P1403.68 c. P1102.37 b. P1340.38 d. P1030.28
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 borrows money from a bank but he only received 83% of the amount requested. He signs a promissory note that he would pay P73,330 at the end of 8 years. How much money is requested from the bank if the simple interest rate is 10.211%?
Suat opens a deposit account in a bank by depositing 10,000 TL. In addition, he will deposit 6,000 TL into the account one year later and 4,000 TL the following year. The deposit account is valued at the annual fixed effective interest rate %. Calculate the interest rate, i, if the value of the money in Suat's account is 22,000 TL at the time that Suat deposits 4,000 TL.
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?
Will borrowed$1205 from his bank for 16 months using a 4.1%discount note. Determine how much interest will paid the bank for the use of its money and how much Willreceivedfrom the bank.
Garry borrowed from a bank of P25,000 for which he signed a promisory note to repay it at the end of 1 year. He only received P21,915 after the bank collected advance interest and an additional amount of P85 for legal fees. What was the rate of interest the bank charged?
Nick borrowed $6000 for 24 months from his bank using an 11 and a 1/2 percent discount note. A. How much interest did Nick pay the bank for the use of the money? B. How much did he receive from the bank?
a man borrows money from the bank but only received 86% of the amount requested. he signs a promissory note that he would pay P55,980 at the end of 7 years. how much money is requested from the bank if the simple interest rate is 9.766% a. 36,857.114 b. 38,662.539 c. 33,249.783 d. 30, 365.448
John signed a 90-day note with a face value of $6,000 and a discount rate of 14.57%. How much did the John receive from the bank? (ordinary time)
A man deposits P500 in a credit union at the end of each year for 5 years. The creditunion pays 5% interest, compounded semiannually. At the end of 5 years, immediatelyafter the fifth deposit, how much does the man have in his account.