Jackson borrowed $25,000 on August 10, 2011. He repaid $8,000 on November 1, 2011, $5,350 on December 15, 2011, and the balance on February 20, 2012. The interest rate was set at 10.00%. a) How much of the first payment was used to pay down the loan principal? (ie: not interest) b) How much of the second payment went to pay interest charges (ie: not principal)? c) How much was the final payment?

Jackson borrowed $25,000 on August 10, 2011. He repaid $8,000 on November 1, 2011, $5,350 on December 15, 2011, and the balance on February 20, 2012. The interest rate was set at 10.00%. a) How much of the first payment was used to pay down the loan principal? (ie: not interest) b) How much of the second payment went to pay interest charges (ie: not principal)? c) How much was the final payment?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter6: Business Expenses

Section: Chapter Questions

Problem 89TPC

See similar textbooks

Similar questions

Craig borrowed $350,000 on October 1, 2014 and is required to pay $360,000 on 3/1/15. What amount is the note payable recorded at on October 1, 2014 and how much interest is recognized from October 1 to December 31, 2014?
Pooh borrowed ₱10,620.00 from Dorah on October 30, 2015. He promised to repay it after four months, together with the interest at 8% simple interest rate. However, he was unable to repay the debt and its interest on time. When he settled his debt on April 16, 2016 he was required to pay an additional of 10% on the unpaid amount for the time after the due date. How much did he pay?
Brooke was required to repay a loan that matured to $3,000 on August 7, 2015. However, she realized that she could clear the loan amount on June 16, 2015 instead. How much would she have to pay to clear the loan on June 16, if the simple interest rate charged is 4.50% p.a.? Juliana invested $5,100 at 5.50% p.a. simple interest. How many days will it take for her investment to grow to at least $5,330? Meghan lent $2,340 at a simple interest rate of 2.25% p.a. to her friend on September 04, 2013. Calculate the amount of interest Meghan's friend had to pay on May 01, 2014.
Reya paid Php 9,250 on a loan made 6 months before at 12% simple interest. Find the interest generated.What is the rate of interest?What is the future value?What is the term of the loan?What is the principal in the problem?
Garry borrowed from a bank of P25,000 for which he signed a promisory note to repay it at the end of 1 year. He only received P21,915 after the bank collected advance interest and an additional amount of P85 for legal fees. What was the rate of interest the bank charged?
On May 1, Year 1, Benz’s Sandwich Shop loaned $14,000 to Mark Henry for one year at 8 percent interest. Requireda. What is Benz’s interest income for Year 1?b. What is Benz’s total amount of receivables at December 31, Year 1?c. How will the loan and interest be reported on Benz’s Year 1 statement of cash flows?d. What is Benz’s interest income for Year 2?e. What is the total amount of cash that Benz’s will collect in Year 2 from Mark Henry?f. How will the loan and interest be reported on Benz’s Year 2 statement of cash flows?g. What is the total amount of interest that Benz’s earned on the loan to Mark Henry?
Ken borrowed $3400 from the bank for 20 months. The bank discounted the loan at 7.4%.How much was the interest?$Correct State your result to the nearest penny.How much did Ken receive from the bank?$Correct State your result to the nearest penny.What was the actual rate of interest?
A man borrowed a sum of money from a lending Institution at a simple interest rate of 12%. Determine the present and future amount of the money borrowed from January 10, 2006 to October 15, 2006 if the accrued ordinary and exact Interests are ₱6,476.71 and ₱6,566.67, respectively.
Suppose that you owe $2,000 on a credit card that charges 18% APR and you pay either the minimum 10% or $20, whichever is higher, every month. How long will it take you to eliminate the debt? Assume that the bank uses the previous-balance method to calculate your interest, meaning that the bank does not subtract the amount of your payment from the beginning balance but charges you interest on the previous balance.
Ms. Kim borrowed an amount from a bank but she only recieved from the bank P1,340. She promised to pay the principal at the end of 9 months. If the corresponding discount rate or often referred toas the banker's discount is 13.73%, what is the amount borrowed?
On March 1, 2015 Mr. A obtains a loan of P1, 500 from Mr. B and signs a note promising to pay the principal and accumulated simple interest at the rate of 5% at the end of 120 days. On May 15, 2015, Mr. B discounts the note at the bank whose discount rate is 6%. What does he receive? A price tag of P 1200 is payable in 60 days but if paid within 30 days , it will have a 3% discount. Find the rate of interest. Discount 1650 for 4 months at 6% simple interest. What is the discount? Find the amount due at the end of 15 months whose present value is P 2, 000 at 5% simple discount? Compute the discount if P2, 000 is discounted for 6 months at 8% simple interest.
. On April 30, 2022, Lenny Inc. borrowed $10 million cash from Colonial Bank and issued a 5-month, noninterest-bearing note, priced to yield an effective interest rate of 10%. The stated discount rate on this loan is: A. More than the effective interest rate. B. Less than the effective interest rate. C. Equal to the effective interest rate. D. Unrelated to the effective interest rate