Dan opens a line of credit at a local bank, and immediately borrows 2080 dollars. 5 months later, he repays 1070 dollars. 4 months after the repayment, he borrows 740 more dollars. 6 months later, he repays 640 dollars. If no other transactions take place and the interest rate is 0.9 percent per month (compounded monthly), how much will he owe two years after he opened the line of credit?

Dan opens a line of credit at a local bank, and immediately borrows 2080 dollars. 5 months later, he repays 1070 dollars. 4 months after the repayment, he borrows 740 more dollars. 6 months later, he repays 640 dollars. If no other transactions take place and the interest rate is 0.9 percent per month (compounded monthly), how much will he owe two years after he opened the line of credit?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Q29) Sarah discounted a bill of exchange amounting to OMR 12,000 having a term of 6 months. She discounted the bill with bank immediately for a bank discount of 15%.
8. A store manager obtained a loan of $45,000, at 6 3 8 % interest, for 14 months to purchase supplies. Find the amount of simple interest. (Round to the nearest cent) $2,868.75 $3,346.88 $3,858.13 $40,162.50
Q6. Pujols Lumber Yard has a current accounts receivable balance of $394,539. Credit sales for the year just ended were $6,236,838. How long did it take on average for credit customers to pay off their accounts during the past year? (Enter the answer with 2 decimal places (e.g. 23.45)
9. On Oct 1, 20X1 ABC Co. discounted a one year 12% P600,000 note received from a customer on January 1, 20X1 with a bank at 14% on a without recourse basis. How much is the loss on discounting? 4,690 4,960 5,250 5,520
8. The average daily balance on Crandall's credit card is $4,637.23. His APR is22%. What is his finance charge for this billing cycle?A. $85.02B. $1,020.19C. $22.00D. $34.01
EX.06.144 On April 7, Wilhelm, Inc. sold goods for $50,000 and accepted a 10%, 60-day note. On April 22, the company sold the note to a bank at a 13% discount rate. Required:Compute the amount of interest revenue and the loss on sale of the note. Assume a 360-day year. Round your answers to two decimal places. Interest revenue $ Loss on sale of note $
20. On November 1, 20x1, ABC discounted a P1,000,000, 6-month note, received from a customer on July 1, 20x1, with a bank at 16% on a without recourse basis. Use months instead of days. Loss on discounting would be The correct answer is: 8,267 REQUIRED: Provide the step-by-step solution.
30. On November 1, 20x1, ABC discounted a P1,000,000, 90-day note, received from a customer on September 15, 20x1, with a bank at 16% on a with recourse basis. The bank used 365 days a year in computing the discounts. If the discounting is treated as a secured borrowing, interest expense would be The correct answer is: 5,270 REQUIRED: Provide a step-by-step solution.
12. Tony's Towing borrows $17,250, at 7.5% interest, for 320 days. If the bank uses the exact interest method, how much interest will the bank collect? (Round to the nearest cent.) $718.75 $1,134.00 $1,134.25 $1,293.75
Wyatt Oil extends credit on terms of 1/15, net 30. The percentage of Wyatt's receivables that are past due is closest to: A) 20.1% B) 32.1% C) 38.3% D) 42.2%
1. Sol Sib borrowed P14,000 for 10 months from a rural bank. The banker discounts the note at 8%, Find the discount and the proceeds.
Lily Corp. Corp. sells on term 2/20, net 40. Total credit sale for the year are P180,000. 40% pays on the 20th day and take discounts while the rest pay on the due date. What is the average amount of accounts receivable? (Use 360-day year) a. 16,000 b. 36,667 c. 26,667 d. 12,000

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