An electric cooperative charges 5% per month on any past due bills. If your bill of Php 4215.25 bill were owed for 6 months, what interest would you pay to the electric cooperative compounded monthly?

An electric cooperative charges 5% per month on any past due bills. If your bill of Php 4215.25 bill were owed for 6 months, what interest would you pay to the electric cooperative compounded monthly?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 15MC: Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual...

See similar textbooks

Related questions

Q: An automobile loan of $15,000 at 12% APR compounded monthly for 36 months requires equal monthly…

A: Repayment of loan is made in installments of fixed amount which include interest as well as portion…

Q: Your electric bill is $134. You are charged 8% simple interest for late payments. How much do you…

A: Interest = Original bill value * rate * time Interest = $134 *8% * 5/12 Interest = 4.47

Q: ARAB Bank pays 0.074 percent, compounded weekly (based on 52 weeks), on an 8-month certificate of…

A: The effective annual rate of interest is the real return on the savings account when the effects of…

Q: ARAB Bank pays 0.07 percent, compounded weekly (based on 52 weeks), on an 8-month certificate of…

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

Q: Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime…

A: Interest rate= Prime rate +4% = 8% + 4%= 12% Interest is calculated for the number of days on…

Q: A payday loan company charges a $95 fee for a $350 payday loan that will be repaid in 11 days.…

A: A payday loan is a short-term unsecured loan, often characterized by high-interest rates. The term…

Q: You sign a simple discount promissory note for $7,000 at a discount rate of 7%, for 24 months. What…

A: Discount = Amount*Interest rate*Time period/12 Proceeds= Principal Amount- Discount

Q: Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime…

A: Prime rate The current interest rate charged by the financial institution to its customers is known…

Q: A person borrows $3,000 on a bank credit card at a nominal rate of 18% per year, which is actually…

A: Annual Percentage Rate It the total interest paid each year which is before consideration for the…

Q: ZLX Inc owes a consulting firm $1,256,300, payable in 12 months. To fund this bill today, how much…

A: Amount payable $1,256,300 Rate is 4% compounded monthly

Q: On March 1, Minnerly Motors obtains a business loan from a local bank. Theloan is a $25,000…

A: The formula to compute interest charge as follows:

Q: First National Bank charges 15 percent compounded quarterly on its business loans. First United Bank…

A: The effective annual rate of interest is the actual or the real rate of interest paid or received…

Q: Suppose a customer has to pay a total amount of PhP 20,676 as a payment of a personal loan at the…

A: Solved using Financial Calculator FV = 20,676 N = 3.5 * 4 = 14 I/Y = 4/4 = 1 CPT PV = 17,987.35

Q: ABC Factory borrows Php 700,000 at 6% interest compounded every 4 months for 36 months. How much…

A: Borrowed amount (P) = Php 700,000 Annual interest rate = 6% Interest rate per 4 months (r) = 6%*4/12…

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: Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime…

A: Cook security systems has line of credit = $37500 Annual charge rate = 4% On October 1, Opening…

Q: July 1, Bee Company will need a fixed interest rate loan of P1,200,000 for 6 months starting on…

A: A company can borrow money from the bank if the company needs money for the business. The bank will…

Q: nterest , a company that you regularly do business with, gives you a $11,000 note. The note is due…

Q: A payday loan company charges a $60 fee for a $450 payday loan that will be repaid in 10 days.…

A: Equivalent annual interest rate = fees changes/(Loan amount*number of days of loan/365)

Q: A payday loan company charges a $25 fee for a $550 payday loan that will be repaid in 14 days using…

A: Interest Amount = Principal * Rate * Time

Q: If you borrow $5000 that you agree to repay in 8 equal quarterly payments at 2.8% interest per…

A: given, Principal = $5000 r=2.8% per quarter number of quarter = 8

Q: Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime…

A: Interest rate applicable = Prime rate + premium Interest will be charge when the line of credit…

Q: XYZ Bank pays simple interest of 2% with quarterly compounding for deposits in their savings…

A: LIFO method is also called Last -In first out method. Under this method money that is deposited at a…

Q: A payday loan company charges 5% interest for a 2 week period. What would be the annual interest…

A: Interest Rate = 5%Period of Interest Charge = 2 WeeksNumber of Weeks in a Year = 52 Calculation of…

Q: A payday loan company charges a $85 fee for a $500 payday loan that will be repaid in 14 days.…

A: Payday loan is a type of short term borrowing. This loan is based on the income of the borrower and…

Q: Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime…

A: New balance = balance on 31 October + interest

Q: The pawn shop adds 2 percent to loan balances for every two weeks a loan is outstanding. What is the…

A: Given. Pawn Shops Adds 2% to loan balances for every two weeks here interest is adding to the…

Q: A payday loan company charges a $45 fee for a $550 payday loan that will be repaid in 18 days.…

A: In this question we need to compute the equivalent annual interest rate.

Q: Global Waste Management Solutions Ltd. borrowed $36,000 at 6.6% compounded semiannually. They made…

A: Borrowing Amount = 36,000 Interest Rate = 6.6% Compounded semi annually Number of compounding…

Q: What are the correct portions assigned to principal interest of the final payment?

A: Loan (mortgage) amortization schedule refers to a schedule which is prepared to shows the periodic…

Q: San Juan Rural Bank is offering to the public their savings account scheme that pays 9.84%…

A: Interest rate = 9.84% We need to find annual rate which is quarterly compounded. Let the effective…

Q: Ruby Wilson, a student at State College, has a balance of $350 on her retail charge card. If the…

A: Given Information: Amount balance of $350 Finance charge is 22% Month has 30 days

Q: Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime…

A: Interest rate will be equal to addition of current prime rate plus annual percentage rate. = 8% + 4%…

Q: Dome Metals has credit sales of $522.000 yearly If Dome offers a 2 percent discount for payment in…

A: Accounts receivables of a company are the receivables which a company will receive from the…

Q: A credit card company charges an interest rate of 1.375% per month on the unpaid balance of all…

A: Effective rate of interest is the real return on savings or any interest paying investment when…

Q: Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime…

A: Line of credit (LOC) can be defined as the prespecified of money that can be borrowed from a lender…

Q: A payday loan company charges $95 fee for a $350 payday loan that will be repaid in 13 days.…

A: Given, Payday loan company charges fee = $95 Payday loan amount = $350 Duration = 13 days

Q: Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime…

A: Line of credit is service which is provided by bank or financial body to customer or business to…

Q: Federal Savings Bank is offering a 6-month CD (certificate of deposit) with a rate of 4.5%…

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

Q: A customer has to pay an amount (principal + interest) of PhP 32,230 as a pay a personal loan at the…

A: Today value of money required will be that loan without interest.

Q: Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime…

A: Loan is a value which is borrowed from the sources like bank and amount repaid later with and extra…

Q: Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime…

A: Interest on Line of credit is based on the opening balance of the period before the balance is…

Q: A washer-dryer combination can be purchased from a department store by making monthly credit card…

A: For calculation of purchase price we need to use the following formula of annuity due PV of annuity…

Q: Cooper Stereos has a $22,500 line of credit which charges an annual percentage rate of prime rate…

A: The calculation is:

Q: If you buy a computer directly from the manufacturer for $2,825 and agree to repay it in 48 equal…

A: Principal = $ 2825 Number of monthly installments = 48 Monthly interest rate = 1.94%

Q: Onse took a loan of P2,000 that is repaid by a payment of P3,500 made 24 months later. Find the…

A: Present Value refers to the discounted value of a single cash flow or multiple cash flows today…

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 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

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
A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an annual interest rate of 11%. If 6 months have passed since note establishment, what would be the recorded interest figure at that time? A. $7,150 B. $65,000 C. $14,300 D. $2,383
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?
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.
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?
Cost of Bank Loan Mary Jones recently obtained an equipment loan from a local bank. The loan is for 15,000 with a nominal interest rate of 11%. However, this is an installment loan, so the bank also charges add-on interest. Mary must make monthly payments on the loan, and the loan is to be repaid in 1 year. What is the effective annual rate on the loan (assuming a 365-day year)?
Homeland Plus specializes in home goods and accessories. In order for the company to expand its business, the company takes out a long-term loan in the amount of $650,000. Assume that any loans are created on January 1. The terms of the loan include a periodic payment plan, where interest payments are accumulated each year but are only computed against the outstanding principal balance during that current period. The annual interest rate is 8.5%. Each year on December 31, the company pays down the principal balance by $80,000. This payment is considered part of the outstanding principal balance when computing the interest accumulation that also occurs on December 31 of that year. A. Determine the outstanding principal balance on December 31 of the first year that is computed for interest. B. Compute the interest accrued on December 31 of the first year. C. Make a journal entry to record interest accumulated during the first year, but not paid as of December 31 of that first year.
Cost of Bank Loan On March 1, Minnerly Motors obtains a business loan from a local bank. The loan is a 25,000 interest-only loan with a nominal rate of 11%. Interest is calculated on a simple interest basis with a 365-day year. What is Minnerlys interest charge for the first month (assuming 31 days in the month)?
Whole Leaves wants to upgrade their equipment, and on January 24 the company takes out a loan from the bank in the amount of $310,000. The terms of the loan are 6.5% annual interest rate, payable in three 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 February 24, and the entry for payment of the short-term note and final interest payment on April 24. Round to the nearest cent if required.