An employee has a promissory note, due N years hence, whose maturity value is P250,000. If the rate of interest is 16% compounded bi-monthly, The employee had ask for P175,000 on the promissory note. Find: N a. None of these b. 2.22 years c. 2.26 years d. 2.62 years

An employee has a promissory note, due N years hence, whose maturity value is P250,000. If the rate of interest is 16% compounded bi-monthly, The employee had ask for P175,000 on the promissory note. Find: N a. None of these b. 2.22 years c. 2.26 years d. 2.62 years

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter4: Gross Income: Concepts And Inclusions

Section: Chapter Questions

Problem 21CE

See similar textbooks

Related questions

Q: ASE TYPE IT AND NOT HANDWRITTEN An obligation will be amortized by quarterly payments of P5,000 for…

A: The loans are amortized based on the period and interest rate and loan amount.

Q: A person contracts two obligations of $ 10,000.00 and $ 15,000.00 that will be paid, the first…

A: The company's aim will be to increase the profits of the company. The profits will be arrived at by…

Q: A limited company borrows form commercial bank 1,000,000 at 12% interest to be paid in equal annual…

A: Installments are the scheduled payments as per the agreed terms and conditions and the loan amount…

Q: Suppose a certain manufacturer deposits 3000 at the beginning of each 3 month period for 8 years in…

A: Deposit at the beginning of 3 months = 3000 Year = 8 Terms(n) = 8*3 = 24 Interest Rate(r) =8% per…

Q: Equal – quarterly deposits of P 2,000 for 2 years which starts immediately is made at a savings…

Q: An accountant is entitled to received 35,000 pesos at the beginning of each year for 18 years. What…

A: Annual receipt (C) = P 35,000 Number of annual receipts (n) = 18 Interest rate (r) = 3%

Q: Mr X borrowed P100k at 5% per month payable in 60 equal end the month payments. a). How much of the…

A: Loan Amount P 1,00,000.00 Time Period (Months) 60 Interest rate (Months) 5%

Q: Clark borrows P 600,000 at 15% compounded annually agreeing to repay the loan in 15 equal payments.…

A: Loan amount (PV) = P600,000 Interest rate (r) = 15% Number of payments (n) = 15

Q: 1. A fully secured loan of P30,000 was to be amortized by 10 equal semi-annual payments, the first…

A: As per the honor code, We’ll answer the first question since the exact one wasn’t specified. Please…

Q: Suntech Distributors, Inc., deposits $4,000 at the beginning of each 3-month period for 7 years in…

A: Formula: A = P [ 1 + ( r / N )NT ] Interest : Interest is a fee charged on the borrowed amount.

Q: A loan company advertises that $100 borrowed for one year may be repaid by 12 monthly installments…

A: Effective annual interest is the amount which is expressed in terms of percentage paid annually to…

Q: On January 1, a company agrees to pay $20,000 in three years. If the annual interest rate is 10%,…

A: Present value: It can be defined as today’s value of the sum of money that will be received by the…

Q: Suppose a certain manufacturer deposits $3,000 at the beginning of each 3 month period for 6 years…

A: a) The question gives the following information:

Q: A $12,000 non-interest-bearing promissory note is discounted at 6% compounded monthly, three years…

A: Maturity amount (MV) = $12,000 Interest rate = 6% Monthly interest rate (r) = 6%/12 = 0.50% Period =…

Q: years, (b) a 10-year me s, (c) interest payabl 00. For each obligatic ime an operating cycl borrows…

A: BE11-1 1 )a -It is a non current liability as same is due in2 years b) $ 30,000 is a current…

Q: A MAN PAYS HIS DEBT IN THE FOLLOWING MANNER: P1,000 AFTER 1 YEAR, P900 AFTER 2 YEARS, P800 AFTER 3…

A: Payment after year 1 = P 1000 Payment after year 2 = P 900 Payment after year 3 = P 800 Payment…

Q: You have taken a loan of $76,000.00 for 22 years at 5.2% compounded quarterly 1st-3rd month…

A: Payment refers to the periodic payments which are made in lieu of repayment of a loan. Payment…

Q: If for the next 30 years you place OMR 3,610 in equal annual year-end-deposits into an account…

A: Future value of annual year end deposits is calculated by future value of ordinary annuity formula.…

Q: Mr John Week borrowed $ 2,400 at 1% per month payable in 24 equal end-of-the month payments. How…

A: The loan amount which is unpaid is needed to be paid in installments. If this amount will not paid…

Q: Nelson took out a 25-year home loan of $500,000. He made equal month-end repayments at the interest…

A: A loan is an amount that is borrowed from a bank or any other party. Loans are used by individuals…

Q: Adam received a low-interest loan of $25,000 from his employer on January 1st. The loan is to be…

A: Income tax payable is an obligation by the tax payer to the government on the taxable income. Income…

Q: A loan with interest at 10% converted semiannually is to be amortized by equal payments of…

A: Interest rate = 10% Semi annual interest rate (r) = 10%/2 = 5% Period = 9 Years Number of payments…

Q: Beginning in January, a person plans to deposit $1 at the end of each month into an account earning…

A: Information Provided: Interest rate = 9% compounded monthly Amount = $1 Term = 3 years

Q: An item is sold for an initial installment of $600 and 18 payments of $500 at the end of each month,…

A: Amortization schedule: An amortization schedule is a detailed table of periodic loan payments that…

Q: A client is given a loan of principal amount of R50,000 which accrues interest of 10% per annum,…

A: A loan is a financial arrangement in which the borrower get a lump sum amount and paid it in future…

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: An engineer deposits $8500 every semiannual(first deposit will be 6 months later) into a savings…

A: Semi Annual Deposit = 8500 Total Semi Annual Periods = 32 (16 years) Interest Rate = 18% Monthly…

Q: Andrews Inc. issues a $497,000, 10% 3-year mortgage note on January 1. The note will be paid in…

A: Interest expense = Beginning carrying value of principal*Interest rate

Q: An engineer deposits $860 each month into a retirement account. After 30 years, the balance in the…

A: Introduction:- The term "return" refers to the profit made on an investment. Any change in the…

Q: Beginning in January, a person plans to deposit $10 at the end of each month into an account earning…

A: Future value of annuity is a stream of regular , fixed interval cashflow compounded at specified…

Q: e pays an employee $1000 at the end of the first semi-annual, $1500 at the end of the second…

A: First we need to compute the effective semi annual rate. Then, The given problem can be solved…

Q: Compute the amount or maturity value of a note at the end of 3 years, if the principal or face value…

A: Compound interest is one of the form of interest used for calculation. Under it, interest is charged…

Q: A man borrows S195,500 from a bank with interest at 7% compounded annually. e agrees to pay his…

A: Loan Amount= $195500 Rate of Interest (r) = 7% Amount payable at the end of 10 years…

Q: An insurance company must make payments of $3 million in two years and $2 million in three years on…

A: Payment in second year is $3 million Payment in third year is $2 million Current Interest rate is 8%…

Q: On January 1, 2Ox1, Bouncy House, Inc. obtains a $50,000, 6 year, 8% installment note for the latest…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: a man brought equipment worth P124,587 payable in 15 quarterly payments, each installment payable at…

A: Mortgage/ Borrowings: Borrowings represent the amount of credit provided by the lender to the…

Q: wed 12,000 by signing a

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

Q: A deposit of $50,000 is made into an account that pays 10% compounded semiannually. How much would…

A: Introduction: Amount which is deposited into an account now is referred to as present value. The…

Q: Chang, Inc. issued a 120-day note in the amount of $360,000 on 12/16/17 with an annual rate of 5%.…

A: Accrued interest is $739.73. Computation of accrued interest: Excel spread sheet:

Q: Yukihira paid a 10% down payment of P200,000 for a restaurant and agreed to pay the balance of…

A: We need to use the following equation to calculate monthly payment PMT =P*i1-1(1+i)n where…

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: Your company borrowed $180,000, agreeing to pay the balance in 18 equalmonthly installments at 8%…

A: Borrowings are the liability of the company which is used to finance the requirement of the funds.…

Q: A business man has an obligation to pay $ 8,000 four years from now, and another obligation to pay $…

A: Annuity refers to series of annual payment which is paid or received at start or ending of specific…

Q: Kate owes P120 000 due in 4 years plus the accumulated interest from today at 13% compounded…

A: number of installments if the first payment is made in at the beginning of the 3rd quarter of the…

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

A: Compounding means earning interest on Principal+ Interest earned on principal.

Q: Kehoe, Inc. owes $40,000 to Ritter Company. How muchwould Kehoe have to pay each year if the debt is…

A: Present Value Factor for 4 years at 12%:

Q: A man owes Php 10,000 with interest at 8% payable semi-annually. Payments are at the beginning of…

A: Loan amount (P) = Php. 10,000 Annual interest rate = 8% Semi annual interest rate (R) = 8%/2 = 4%…

Q: A bonus package pays an employee $1000 at the end of the first semi-annual, $1500 at the end of the…

A: Here, First Semi Annual Bonus is $1,000 Second Semi Annual Bonus is $1,500 Hence, There is an…

Question

a. None of these

b. 2.22 years

c. 2.26 years

d. 2.62 years

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

Similar questions

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?
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
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?
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.
Future Value Hugh Colson deposited 20,000 in a special savings account that provides for interest at the annual rate of 12% compounded semiannually if the deposit is maintained for 4 years. Required: Calculate the balance of the savings account at the end of the 4-year period.
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.
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.)
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.
Use Future Value and Present Value Tables to Apply Compound Interest to Accounting Transactions Kristen Quinn makes equal deposits of $500 semiannually for 4 years. Required: What is the future value at 8%? (Note: Round answers to two decimal places.)
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.