Answered: A man invested P110,000 for 31 days.…

A man invested P110,000 for 31 days. The net interest after deducting 20% withholding tax is P890.36. Find the rate of return annually. · A. 11.50 % · B. 11.75 % · C. 11.95 % · D. 12.32 %

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: You invested $3000 in two accounts paying 5% and 8% annual interest. If the total interest earned…

A: Let "a" be the investment made in 5% annual interest-paying account

Q: If P10,000 is deposited in a bank for 10 yrs at an interest rate of 7% compounded quarterly,…

A: Deposit = 10,000 Nominal Rate = 7% Compounded Quarterly Number of compounding periods = 4

Q: P20,000 was invested at simple interest, part at 11% for 2 years, and the rest at 8% for 3 years.…

A: Simple interest is when the interest is charged only on the principal amount. The formula of the…

Q: You invested $23355 for 12 years at 6.68% per annum. How much more would you receive at the end of…

A: Investment amount = $ 23355 Period = 12 Years Interest rate = 6.68%

Q: A man borrowed P12,000 and agreed to repay it with P4,650.70 interest. If the interest is 6%…

A: Borrowed amount (PV) = P12000 Interest amount = P4650.70 Future value (FV) = 12000+4650.70 =…

Q: How much interest is earned in 4 years on P8,000.00 deposited in an account paying 6% interest,…

A: Compounded interest is a method of calculating interest on debts where interest is paid on interest…

Q: James invested an amount of P100,000 where he obtalned an interest of P16,000 at the end of 2.5…

A: Here, Invested Amount (PV) is P100,000 Interest Received at the end is P16,000 Therefore,…

Q: 10,000). This por ed gross pre-tax and then can be till valued at $40

A: Purchasing cost : $400,000pre- tax income for 6 years32500+23800+34000+24500+36000+26500…

Q: a person borrowed $7,500 at 12% nominal interest compounded quarterly. What is the total amount to…

A: Answer Borrowing amount = $7,500 Interest rate = 12% Compounding Quarterly

Q: If money is worth 12% compounded quarterly, find the present value of 28 quarterly payment of PHP…

A: Interest rate = 12% Quarterly interest rate (r) = 12%/4 = 3% Number of quarterly payments (n) = 28…

Q: $10,000 is invested at 7% compounded annually. Over the next 25 years, how much of the investment's…

A: Simple interest It is the interest amount earned on the original principal. It remains the same for…

Q: A business person invests $4,962 at 4% compounded semiannually for two years. What is the future…

A: Present Value (PV) = $4,962 Rate of interest = 4% per annum = 2% for 6 months Time period = 2 years…

Q: A firm takes out a $300,000 loan to purchase an asset. It makes yearly payments of $30,000 plus…

A: Before tax cash flow is calculated in real asset property. It is the net income after subtracting…

Q: A corporation deposits $20 million in a money market account for 1 year. What will be the difference…

Q: 4. Leti Fuschia decided to invest P100,000.00 in Road Dirty Inc., for a period of 6 years. Determine…

A: Future value can be referred to as the value of an underlying asset or security at a future date.…

Q: Libra Ltd borrowed $120 000 from its local bank to finance their operation. Annual payments are…

A: The formula to compute annual payment:

Q: AB PC Supplies obtains a P5 million bank loan t 8% interest compounded semi-annually. The company…

A: The loan refers to the funds which are borrowed by individuals, companies, and business firms for…

Q: per annum for 11,5 years interest rate paid annually is invested at the same rate but with interest…

A: Information Provided: Present Value = 18,400 Interest rate = 13.2% compounded monthly Term = 11.5…

Q: If the tax 2000 OMR, depreciation is 3000 OMR, amortization 1000 OMR, EBITDA to interest coverage is…

A: Given the following information: Tax: $2,000 Depreciation: $3,000 Amortization: $1,000 EBITDA to…

Q: if $11,000.00 is invested at 18% annual simole interest, how long does it take to be accumulated to…

A: Investment (P) = $ 11000 Interest rate (r) = 18% Future value (F) = $ 34,760 Period = n

Q: Suppose that $290,000.00 is owed on a house. The monthly payment for principal and interest at 8.0%…

A: The amount paid by the borrower on the amount owed is regarded as interest rate.

Q: businessman invested P1,000.00 and after 4 years, it becomes P1,608.44 when he invested at a certain…

A: Future Value = Present value * (1+r)^n Where r = bimonthly rate n= no. of compounding period i.e. 4…

Q: Maturity Value

A: The formula to calculate the maturity value is given by: V = P*(1+r)^n Where P is the principal…

Q: Larry invested $12,000 at an interest rate of 10.18% for 4 years. If the amortization schedule needs…

A: Amortization table is a schedule which shows periodic lease or loan payments. The periodic payment…

Q: Dirk Ward borrowed $12,000.00 for investment purposes on May 19 on a demand note providing for a…

A: Here, Borrowing Amount is $12,000 Interest Rate on May 19 is 4% Interest Rate from 1st August is…

Q: What is the value of before tax equity reversion if sales price is Tk. 8900000, selling expense is…

A: Sales price = Tk. 8900000 Selling expense = 20% of sales = 20% x Tk.…

Q: Mr. Kuri made a money market placement of ₱1M for 45 days at 7.5%. If the withholding tax is 20%,…

A: Given: Amount = 1 Million or 1,000,000 Days = 45 Interest rate = 7.5% Tax = 20%

Q: How much money was originally invested?

A: Simple interest is a method for calculating the interest for loans and other borrowings. It identify…

Q: A man bought an equipment costing P60,000 payable in 12 quarter payments, each installment payable…

A: Cost (PV) = P60,000 Number of payments (n) = 12 Interest rate = 24% Quarterly interest rate (r) =…

Q: A company issues a P300,000, 10 percent, 20-year bond. The tax rate is 40 percent. What is the…

A: Semiannual interest payment = Face value of Bond x interest rate x no. of months/12 = P300,000 x 10%…

Q: 10. Francis, a resident citizen, invested P1,000,000 in a debt instruments (deposit substitute)…

A: The question relates to final tax withhold by UniBank in the first quarter of the issue on an…

Q: JRT Publishers invests P100,000 today to be repaid in five years in one lump sum at 12% compounded…

A: Time value of money is a concept which states that the value of one unit of currency in today's time…

Q: 17. P100,000 was placed in a time deposit which earned 9% compounded quarterly tax free. After how…

A: Calculation of years taken to earned total interest of P 50000 are as follows

Q: If the fringe benefits (13th month pay, 14th month pay and allowances) total 89,000 Php, what will…

A: Solution: If the fringe benefits (13th month pay, 14th month pay and allowances) total 89,000 Php,…

Q: P200,000 was placed in a time deposit at x% compounded quarterly and was free of taxes. After…

A: A time deposit account would seem to be a type of depository account provided by banks which pays…

Q: 17. Brix invested P500,00.00 in a long-term savings account with an interest rate of 7.5% compounded…

A: Compound interest is referred as the interest which is calculated on principal amount which involves…

Q: A man borrowed P12,000 and agreed to repay it with P4,650.70 interest. If the interest is 6%…

A: Here, Borrowed Amount is P12,000 Interest Paid is P4,650.70 Interest Rate is 6% Compounding Period…

Q: If P250,000 is invested for two years, what is the maturity value (disregard withholding tax for #s…

A: Future Value = Present Value x (1 + r)^n

Q: Additional Information The corporate tax applicable for the previous assessment year was 30%. The…

A: Degree of operating leverage means the division of contribution with net income. It means that how…

Q: Locust Inc. owes $20,000.00 to be repaid by monthly payments of $510.00. Interest is 6%…

A: Since you have asked a multiple subpart question, we will answer the first three subparts for you.…

Q: A principal of P27,000 was placed in an investment which gives the interest of 12% compounded…

A: Future Value = Present Value x (1 + r)^n

Q: 4. Leti Fuschia decided to invest P100,000,00 in Road Dirty Inc., for a period of 6 years. Determine…

A: Deposit amount = P 100,000.00 Period = 6 Years

Q: Your company invested S 8,499 four years ago and this investement will become $ 16.364 after six…

A: The future value of the cash flow is the future worth of a cash flow at a certain rate of interest…

Q: A man borrowed P12,000 and agreed to repay it with P4,650.70 interest. If the interest is 6%…

A: Interest rate = 6% Compounded quarterly (r) = 6%/4 = 1.5% Present value (PV) = 12,000 Interest…

Q: 7.) Mr. Almagro made a money market placement of P1,000,000 for 30 days at 7.5% per year. If…

A: Interest : it may be defined as the regular payment made in favor of money lent or we can say that…

Q: Block Associates borrowed $100,000. The company plans to put aside money to repay the loan after 20…

A: A loan refers to a sum of the amount that is being borrowed by a borrower who is in need of funds…

Question

A man invested P110,000 for 31 days. The net interest after deducting 20%
withholding tax is P890.36. Find the rate of return annually.
· A. 11.50 %
· B. 11.75 %
· C. 11.95 %
· D. 12.32 %

Definition Definition Percentage gain or loss from a specific investment over time. The rate of return is the difference between the closing and initial values of an investment divided by the initial value of the investment. The closing value includes any intermediate cash flows such as dividends or interest amounts.

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 Introduction

VIEW

Step 2 Calculation of Annual Rate of Return

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, finance and related others by exploring similar questions and additional content below.

Similar questions

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.
Suppose that Blake Companys total pretax difference from a change to FIFO was 100,000 and the company pays a bonus of 5% of its income before income taxes and bonus to employees. If Blake pays an additional bonus | based on the change in income, would it recognize any expense? If so, when and how much?
A company has wants to earn an income of $60,000 after-taxes. If the tax rate is 32%, what must be the companys pre-tax income in order to have $60,000 after-taxes? A. $88,235 B. $19,200 C. $79,200 D. $143,000
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.
Your friend made an investment of P 45,000 for 2 months at 15% simple interest. If withholding tax is 20%, what is the net interest that he will receive at the end of 2 months?
businessman invested P1,000.00 and after 4 years, it becomes P1,608.44 when he investedat a certain rate of interest compounded bi-monthly. Determine the nominal rate and thecorresponding effective rate.
An investment of $1,000 earns annual interest of 5% (no capital gains). Assuming accrual taxes of 30%, the expected after-tax value of the investment in ten years is closest to: In Question 1, the tax drag in percentage terms is closest to:
What is the value of before tax equity reversion if sales price is Tk. 8900000, selling expense is 20%, and loan of tk. 938000, 28 years is paid off after 9 years, where rate of interest is 10.5% where monthly installment is tk. 8671.85? a. 6536989 b. 6264989 c. 5951178 d. 6049809
Vonte Company has a 21 percent tax rate. Its total interest payment for the year just ended was $19.1 million. What is the interest tax shield?
P200,000 was placed in a time deposit at x% compounded quarterly and was free of taxes. After exactly 5 years, the total interest earned was P120,000. What is the value of x? a.9.5% c. 6.35% b. 8.21% d. 7.12%
An executive invests $22,000, some at 7% and some at 6% annual interest. If he receives an annual return of $1,420, how much is invested at each rate? Pls thanks
A lot purchased for $4,500 is held for five years and sold for $13,500. The average annual property tax is $45 and may be accounted for at an interest rate of 12%. The income tax rate on the long term capital gain is 15% of the gain. What is the rate of return on the investment if the allowance for inflation is treated at an average annual rate of 7%?