Answered: A nine months, 15% note for $9000 dated…

Business

Accounting

A nine months, 15% note for $9000 dated April 15 is reciebed for a customer. The maturity value of the note is what

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter6: Fixed-income Securities: Characteristics And Valuation

Section: Chapter Questions

Problem 21P

See similar textbooks

Related questions

Q: A loan of $21,919 was repaid at the end of 18 months. What size repayment check (principal and…

A: Answer - Given Data, P = $ $21919 r = 10.7% = 0.107 t = 18 months = 18/12 = 1.5 yrs Formula,…

Q: Kylah Enterprises signs a 3-month, noninterest-bearing note with a stated rate of 13.5% and a…

A: Given, Principal =$215,000 Interest =13.5% Computation of interest =$215,000 * 13.5% *3/12…

Q: An interest-bearing promissory note for $5,500 is due in 180 days with simple interest at 4.75% p.a.…

A: Here, Face value = 5,500 Interest rate = 4.75% Discount rate = 6.75% Time to maturity = 180 days…

Q: A company receives a 10%, 90-day note for $5,700. The total interest due on the maturity date is:…

A: Notes Receivables (also known as promissory notes) are a promise in writing to receive a certain…

Q: Jain Enterprises honors a short-term note payable. Principal on the note is $425,000, with an annual…

A: Journal:Journal is the method of recording monetary business transactions in chronological order. It…

Q: Use the ordinary interest method, 360 days, to solve the following word problem. Round to the…

A: compute the proceeds that R receives on note: Bank discount=MV×Bank discount rate×Discount…

Q: You sign a simpie discount promissory note for $7,000 at a discount rate of 5%, for 30 months. What…

A: Given: Discount rate = 5% Amount = $7,000 Period = 30 months

Q: maturity value of a $67200, 6%, 9-month note receivable

A: Note receivable is a balance sheet item which represents claims of a credit to record the values of…

Q: A company borrowed $10,000 by signing a 180-day promissory note at 11%. The maturity value of the…

A: Amount Borrowed =$ 10,000 Number of days = 180 Rate of Interest = 11% per annum = 11/12 % Maturity…

Q: Roni Lockard signed a $28,500 simple discount promissory note at a certain bank. The discount rate…

A: Maturity date of notes receivable is calculated on the basis of the wordings in the note. If it is…

Q: After being held for 40 days, a 120-day, 12 % interest bearing note receivable was discounted at a…

A: The net proceeds are the amount the seller received at the time of the maturity of the note which is…

Q: A promissory note has a face value of 22275.00 and it has a date of issue of November 15 this year.…

A: Simple Interest is the method in which we calculate the interest on a specific principal amount at a…

Q: Use the ordinary interest method, 360 days, to solve the fol problem. Round to the nearest cent when…

A: Interest amount on promissory note = note value (principal) x rate x time /100

Q: Sydney limited draws a promissory note with a face value of $50 000 and a maturity of 181 days. The…

A: Interest rate can be calculated as: = Discount amount / Present value * 365/ Days to maturity * 100

Q: on June 8th Alton Co issued an $70620 11% 120 Day note payable to seller Co. Assuming a 360 day year…

A: Interest on Note = Face value of Note x rate of interest x No. of days /360 days =…

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: The maturity value of a P100,000 , four-month, 9% note is

A: Note receivable is one of the current assets of the business, on which payment is expected to be…

Q: A 7 year, $7,500 promissory note bearing interest at 6% compounded monthly was sold after 2 years.…

A: Face Value of Promissory note = $7500 Interest rate = 6% Interest rate monthly = 6%/12 = 0.50%…

Q: On January 1, you deposit K100 in an account that pays a nominal interest rate of 11.33463%, with…

A: Computation:

Q: You purchase a TIP note with an original principal amount of $1,.000,000 and a 9 percent annual…

A: Original Principal Amount = $1,000,000 Annual coupon Rate = 9% Inflation over the first six months =…

Q: ne 8, Alton Co. issued an $79,432, 10%, 120-day note payable to Seller Co. Assuming a 360-day year…

A: Solution: Maturity value of the note is amount that is arrived by adding total amount of interest…

Q: Determine the maturity date, interest at maturity, and maturity value for a 90-day, 10 percent,…

A: Given: Note value : $36000 Interest rate = 10% Bill date : 15 Feb Due date = 90 days

Q: If the company accepted a Notes Receivable on Oct 1, X1 for $60,000 at 8%, due in one year, what is…

A: Maturity value is the total amount including the interest on the Notes Receivable till it's maturity…

Q: A promissory note with a maturity value of 1300 matures in 60 days. The note is sold 23 days before…

A: Given that: Maturity Value= 1300 n=60 Discount Rate (r)=5.5%

Q: The face value of a simple interest note and bank discount note is $8,000each. Assume both notes…

A: “Hey, since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

Q: Assume Mango. Co. Ltd. issued a mortgag e note payable for 1,000,000 yuan at 18% annual interest…

A: Notes payable are the liabilities recorded in the books when a person or a company borrows money…

Q: An interest bearing promissory note for 90 days at 5.6% p.a. has a face value of $120,000. If the…

A: Step 1 Discount of trade bills is short-term financing or credit facility provided by bank in which…

Q: TORR, Inc. issues a $500,000, 6%, six-year note on January 1, 20X1. If the monthly payment is…

A: A note is one of the debt instruments that is issued by companies in order to raise funds. Note…

Q: Find the maturity value of a note for 15,000 pesos at 12% ordinary simple interest for 182 days.

A: Ordinary simple interest makes use of 360 days in a year. It does not uses 365 days in a year.

Q: Rex Corporation accepted a $3,500, 5%, 120-day note dated August 8 from Regis Company in settlement…

A: Notes Receivables - Notes Receivables are the promise to pay money on the specified date with the…

Q: The Sample Company discounts a $100,000 note receivable on 15 Máy 20x2. The following facts are…

A: Maturity value can be calculated as sum of principal and interest. Further, the discount amount can…

Q: The balance on a credit card, that charges a 20% APR interest rate, over a 1 month period is given…

A: Average daily balance is the average of the monthly expenses Date No of days Balance…

Q: TORR, Inc. issues a $600,000, 9%, five-year note payable on January 1, 20X1. If the monthly payment…

A: Carrying value of note payable Liability note payable =$600000 on January 1 Add Finance cost…

Q: On June 8, Williams Company issued an $80,400, 7%, 120-day note payable to Brown Industries.…

A: Given: Face value = $80,400 Interest rate = 7% Days = 120

Q: on nov, 1. Alan co. signed a 120 day, 12% note payable, with a fac valus of 9,900. what is the…

A: Notes payable is known as a negotiable instrument signed by the promisor who agreed to pay a certain…

Q: On January 18, 2007, BusinessWeek reported yields on Treasury Bills. Bruce Martin purchased a…

A: Treasury bills: These are government-issued securities having maturity within a year. These are also…

Q: Six months from today, you wish to begin making an infinite series of semiannual withdrawals of $600…

A: An infinite series of deposit which will have same deposit is known as perpetuity. The present value…

Q: wed 12,000 by signing a

A: Note value $12000 Days 120 Interest rate 15% Interest due on maturity…

Q: the monthly payment is $5,800, what is the note's carrying value after the first month's payment is…

A: The original cost of an asset, as recorded in the books or balance sheet of a corporation, less the…

Q: e note has been outstanding 10 months, what is the annual interest rate on that note?

A: Note payable refers to the long term liabilities which reflects the sum value of money a company…

Q: On June 8, Williams Company issued an $92,400, 11%, 120-day note payable to Brown Industries.…

A: Solution: Maturity value of note is computed as principal amount of note plus interest amount till…

Q: A 120-day, 10% interest-bearing note receivable is sold to a bank with recourse after being held for…

A: It is the document that acts as a written promise for a certain payment.

Q: Calculate the missing amount for each of the following notes receivable.Face Value Annual…

A: Note receivable: Note receivable refers to a written promise received by the creditor from the…

Q: On June 8, Williams Company issued an $80,000, 5%, 120-day note payable to Brown Industries.…

A: maturity value of the note = issue price + Interest accrued

Q: five year promissory note with a face value of $5000, bearing interest at 6% compounded…

A: To calculate amount to be paid for promissory note first of all we will calculate future price after…

Q: On June 8, Williams Company issued an $74,400, 7%, 120-day note payable to Brown Industries.…

Q: A note with a face value of BD 2,600 will mature after 3 Years from today is sold to a bank that…

A: Given information is: Face value of Note = BD 2600 Period = 3 years Compound interest rate = 6% Bank…

Q: A loan of 50,000 pesos that is due in 10 months at 12% interest is guaranteed by a post dated check.…

A: Face value of the check will be amount payable of maturity date of loan.

Q: What does "2/10" mean, with respect to "credit terms of 2/10, n/30"? A. A discount of 2…

A: Given, credit terms = 2/10, n/30 n/30 indicates that the payment should be made within 30 days from…

Question

A nine months, 15% note for $9000 dated April 15 is reciebed for a customer. The maturity value of the note is what?

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

Formula to calculate the maturity value of the note:

VIEW

Compute the maturity value:

VIEW

Trending now

This is a popular solution!

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

Chemical Enterprises issues a note in the amount of $156,000 to a customer on January 1, 2018. Terms of the note show a maturity date of 36 months, and an annual interest rate of 8%. What is the accumulated interest entry if 9 months have passed since note establishment?
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?
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?
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?
Lime Co. incurs a $4,000 note with equal principal installment payments due for the next eight years. What is the amount of the current portion of the noncurrent note payable due in the second year? A. $800 B. $1,000 C. $500 D. nothing, since this is a noncurrent note payable
Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank in the amount of $500,000. The terms of the loan are 2.9% annual interest rate and payable in 8 months. Interest is due in equal payments each month. Compute the interest expense due each month. Show the journal entry to recognize the interest payment on October 20, and the entry for payment of the short-term note and final interest payment on May 20. Round to the nearest cent if required.
Blake Department Store sells television sets with one-year warranties that cover repair and replacement of television parts. In the month of June, Blake sells forty television sets with a per unit cost of $500. If Blake estimates warranty fulfillment at 10% of sales, what would be the warranty liability reported in June? A. $1,000 B. $2,000 C. $500 D. $20,000
On July 1, a company sells 8-year $250,000 bonds with a stated interest rate of 6%. If interest payments are paid annually, each interest payment will be ________. A. $120,000 B. $60,000 C. $7,500 D. $15,000
Entries for installment note transactions On January 1, 20Y2, Hebron Company issued a 175,000, five-year, 8% installment note to Ventsam Bank. The note requires annual payments of 43,830, beginning on December 31, 20Y2. Journalize the entries to record the following: