A man bought a lot worth P2424737 if paid in cash. By installment, he paid a down payment of P250,000; P584444 at the end of one year; P406358 at the end of 3 years and final payment at the end of five years. What is the final payment if the interest was 20% cpd. annually?

A man bought a lot worth P2424737 if paid in cash. By installment, he paid a down payment of P250,000; P584444 at the end of one year; P406358 at the end of 3 years and final payment at the end of five years. What is the final payment if the interest was 20% cpd. annually?

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

See similar textbooks

Related questions

Q: AI Dente's cash balance on October 1 is $2,500. It has provided the following information for the mo...

A: The cash collection schedule is prepared to estimate the cash collected from customers during the pe...

Q: Borrowed $5,000 cash from the bank, giving a 60-day non-interest-bearing note. T July 15 note is dis...

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal....

Q: Using the aging method for recording bad debt expense, estimated uncollectible accounts are $80,000....

A: Calculation of balance after adjustment and cash flow from financing activity are as follows

Q: Star, Inc. used Excel to run a least-squares regression analysis, which resulted in the following ou...

A: Total Cost = Fixed Cost + (Variable Cost per unit * Production Volume) Fixed Cost = Coefficients o...

Q: QS 6-3 Cash and equivalents LO C2 Choose from the following list of terms and phrases to best comple...

A: Financial Accounting is the one branch of accounting where financial transactions including regular ...

Q: The Sino-Fizer Company is concerned about the cash flow of the company. They consulted you to prepar...

A: Budgeting is the method to forecast the future cashflows, sales, production and other important area...

Q: Pendragon Inc. has an operating loan with a balance of $52,000 on September 1 with interest set at p...

A: The answer is stated below:

Q: company's inventory records report the following: Beginning balance August 1 August 5 August 12 24 u...

A: Calculation of value of inventory under FIFO method are as follows.

Q: At January 1, 2022, Blossom Company reported the following property, plant, and equipment accounts: ...

A: 1)Accumulted depreciation on asset sold on May 1 Deoreciation per annum = 3000000/10 = 300000 per an...

Q: Broker A loans Broker B 1,000 shares of IBM for the price of $100 per share at that time. When A ret...

A: Recognised gain refers to the amount of gain from sale of an asset which is taxable, or simply it is...

Q: On February 3, Smart Company sold merchandise in the amount of $2,400 to Truman Company, with credit...

A: Journal entries are used to keep financial transactions organized. You enter transaction data into y...

Q: Develop a flowchart for revenue cycle of 7-Eleven retail store containing their cash disbursement, p...

A: Revenue cycle is the method used for recording the generation of revenue in an accounting period. Th...

Q: USD565,000 and paid ordinary dividends of USD59,000. It also has 25,000 cumulative preference stocks...

A: Earnings per Share (EPS) refers to the amount of Earnings attributable to every shares of the compan...

Q: Give all journal entries related to the disposal of Machine B in the current year. (If no entry is r...

A: At the time of sale of a fixed asset, accumulated depreciation is deducted from the original cost of...

Q: What is the annual interest rate earned by a 33-day T-bill with a maturity value of $1,000 that sell...

A: solution Given Maturity value 1000 Present value 996.16 Duration of t bill 33 day ...

Q: end öf each following year. a) To what sum will the investment grow at the time of the 10th deposit?...

A: Interest is amount of money which the company earns on the investment made by the company which has ...

Q: Hame the Sub-headings under which Shareholder's Funds shall be classified in pany's Balance Sheet,

A: Solution Concept In a balance sheet there are two sides , assets and liabilities and equity In liabi...

Q: Frank has 200 shares of XYZ, Inc. with a basis of $5,000 and a value of 7,500. He receives a tax-fre...

A: Dividend- A dividend is an allocation of profits by a company to its shareholders. When a company ea...

Q: Pamana Company's bookkeeper is not familiar with accrual accounting concepts. He determined net inco...

A: Net income means the income left after deducting all expenses and including all income whether opera...

Q: A medium-sized manufacturing firm seeks to expand its operation in Mindanao. With a loan amounting t...

A: Amortization is the average amount that would be paid off in a loan arrangement over the period of t...

Q: A resident citizen taxpayer sold share of stock of a domestic corporation though the local stock exc...

A: Capital Gains Tax is a tax on capital gains arising upon sale of an asset. It is assumed that the ju...

Q: Mountain Sports manufactures snowboards. Its cost of making 1,890 bindings is as follóws: (Click the...

A: Total Variable cost = Total Cost - Total Fixed cost Difference = Cost of buying - Cost of Making Net...

Q: HUM., Co. gave fringe benefits to employees as follows: To its Clerks and Janitors P 100,000 To its ...

A: solution concept Fringe benefit to rank and file employee are not subject to fringe benefit tax Frin...

Q: Prepared ledger account for following transaction 1- Jan Started business with $ 2,000 in the bank 2...

A: Ledger- A subsidiary ledger is a group of related accounts with consolidated balances equal to the g...

Q: A company is considering investing £46,000 in a machine that will be operated for 4 years, after whi...

A: Annual profit= Cashflow- Depreciation

Q: Assume that the custodian of a $450 petty cash fund has $59.50 in coins and currency plus $385.00 in...

A: About Petty cash is a little amount of money that is keep on the company premises to pay for needs...

Q: Suppose at the end of the year before any adjusting entries, a company has a balance in Allowance fo...

A: Disclaimer: “Since you have asked multiple question, we will solve the first question for you. If yo...

Q: age of time B. Completion of percentage of a project C. Performan

A: Revenue refers to the sum value of money gained by a business by selling its goods or services in th...

Q: If you received 8% annual interest rates on the above loans and each of your projects was late B mon...

A: Solution Given Loan amounts are A $5 million B $2.8 million C $350000 Interest...

Q: D&R A3 3 - 3 Question 3. FRA Pricing, Valuation, Payoff, and Hedging Today is June 1. Sustainabl...

A: ANSWER: # days LIBOR 30 0.90% 60 1.00% 90 1.05% 120 1.10% 150 1...

Q: d. (Optional) Prepare a system Mowchart of a rode- signed computer- based system that resolve

A: Internal Control Weaknesses: Internal control weaknesses can be defined as the lack of standards i...

Q: Can A recognize the $25,000 loss in 2016? How much loss will A recognize on the IBM calls in 2017? W...

A: Here, in the example, A has made loss on two counts. The 1st loss is incurred when the shares acquir...

Q: Exercise 7-3 Sales on store credit card LO C1 Z-Mart uses the perpetual inventory system and has its...

A: Journal is the initial step in recording the financial transaction, date wise as per the dual entity...

Q: Lynwood, Inc. produces two different products (Product A and Product X) using two different activiti...

A: Machining cost assigned to product X = No. of machine hours x Machining cost per hour

Q: Krogh Lumber's 2019 financial statements are shown here. a. Assume that the company was operating a...

A: Disclaimer: “Since you have asked multiple question, we will solve the first question for you. If yo...

Q: The Products 4U Inc. manufactures and sells one product which has the following available informatio...

A: Lets understand the basics. Break even point is a point at which no profit/no loss situation is aris...

Q: Which of the following arguments is not in favour of entities being required to comply with accounti...

A: Accounting Standards are standard set of rules or practices which must be followed at the time of pr...

Q: Wilton sells softball equipment. On November 14, they shipped S4,000 worth of softball uniforms to P...

A: Wilton sells softball equipment. Answer – Selling price of the product – Defective merchandise = $4...

Q: purchase discounts and purchase returns and allowances included in the calculation of cost of goods ...

A: solution Concept Purchase discount and purchase returns and allowances are contra item to purchase a...

Q: Exercise 6-13 (Algo) Depreciation calculation methods LO 3 Millco Inc., acquired a machine that cost...

A: Straight line depreciation Cost of the asset - residual value / useful life of asse Accumulated dep...

Q: Frontier Park was started on April 1 by C. J. Mendez. The following selected events and transactions...

A: Journal entries means the book of prime entry including debit and credit item. Adjusting entry mea...

Q: Jim and Mary Jean are married and have two dependent children under the age of 13. Both parents are ...

A: The portion of your total income used to calculate how much tax you owe in a given tax year is known...

Q: Provide cash-flow (time) diagrams if applicable. In the year 2020, the stock market fell because of...

A: Definition of Cash Flow: Cash flow refers to the net balance of cash moving into and out of a busine...

Q: Accrued Interest Payable The following is a list of outstanding notes payable as of Decemb Maker Dat...

A: Accrued interst payable The amount of interest recognised as a cost by the borrower but not yet paid...

Q: Instructions: Identify each of the following accounts as an asset, Liability or Equity. DESCRIPTION ...

A: Introduction: Balance sheet: All Assets and liabilities are shown in Balance sheet. It tells the net...

Q: Nright Company's cash account shows a $31,300 debit balance and its bank statement shows $29,600 on ...

A: Bank reconciliation is prepared in order to reconcile the bank balance and the company book balance....

Q: Which of the following statements is correct?

A: Answer: Checks are those document that are issued to give or receive any amount. a.Outstanding che...

Q: Valley Spa purchased $8,000 in plumbing components from Tubman Co. Valley Spa signed a 60-day, 12% p...

A: Account receivables are considered negotiable instruments. It is classified in the balance sheet und...

Q: Substantive audit procedures Existence/Occurrence(E/O) Rights &obligations(R/O) Completeness(C) ...

A: Auditing of the financial position as well as the financial records of the organization are importan...

Q: Problem 4 Elegant Co. was organized on Jan. 1, 2022. On that date, it issued 1,000,000 shares of P1....

A: Working Note 1. Number of Shares to be remaining to be sold Total Authorised Capital- Number of s...

Question

A man bought a lot worth P2424737 if paid in cash. By installment, he paid a down payment of P250,000; P584444 at the end of one year; P406358
at the end of 3 years and final payment at the end of five years. What is the final payment if the interest was 20% cpd. annually?

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 by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Electro Corporation bought a new machine and agreed to pay for it in equal annual installments of 5,000 at the end of each of the next 5 years. Assume a prevailing interest rate of 15%. The present value of an ordinary annuity of 1 at 15% for 5 periods is 3.35. The future amount of an ordinary annuity of 1 at 15% for 5 periods is 6.74. The present value of 1 at 15% for 5 periods is 0.5. How much should Electro record as the cost of the machine? a. 12,500 b. 16,750 c. 25,000 d. 33,700
Samuel Ames owes 20,000 to a friend. He wants to know how much he would have to pay if he paid the debt in 3 annual installments at the end of each year, which would include interest at 14%. Draw a time line for the problem. Indicate what table to use. Look up the table value and place it in a brief formula. Solve.
You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.
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.
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
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.
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?
Next Level Potter wishes to deposit a sum that at 12% interest, compounded semiannually, will permit 2 withdrawals: 40,000 at the end of 4 years and 50,000 at the end of 10 years. Analyze the problem to determine the required deposit, stating the procedure to follow and the tables to use in developing the solution.
You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.
On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10% interest rate. Each annual payment is in the amount of $39,569 and payment is due each Dec. 31. What is the journal entry on Jan. 1 to record the cash received and on Dec. 31 to record the annual payment? (You will need to prepare the first row in the amortization table to determine the amounts.)