Answered: Mr. So borrowed Php200,000 from a…

Mr. So borrowed Php200,000 from a cooperative that charges 15% yearly. He used the loan to start his food stand business. How much will he pay for the loan after 18 months?

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

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter8: Taxation Of Individuals

Section: Chapter Questions

Problem 64IIP

See similar textbooks

Related questions

Q: Dina Naples is saving money at the IBM Credit Union for a down payment on a house. How much does she…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: Barry wants to re-model the store that he has for his business. His cousin Diego agrees to give him…

A: An agreement which carry terms and condition of loan is called loan agreement (LA). LA is written…

Q: Imelda took a loan of Php 950,000 from a financial institution to purchase a TV. If the company…

A: Compound Interest is also called interest on interest. It is the addition of interest in the…

Q: Sarah is the owner of Sunshine Bakery. Sunshine Bakery produces 10,000 units of bread per year and…

A: Accounting profit is computed by deducting business expenses from revenue; whereas, economic profit…

Q: Mang Moises needed a refrigerator for his canteen. The refrigerator, which costs P:26,000, may be…

A: In financing, amortization is the amount of loan, in which principal loan paid according to the…

Q: Lupe made a down payment of $8000 towards the purchase of a new car. To pay the balance of the…

A: The present value of the annuity is the current worth of a cash flow series at a certain rate of…

Q: Mr. Sosa borrowed Php. 1,500,000 for the purchase of a car. If his monthly payment is Php.27,000 on…

A: The total amount of interest paid over the life of mortgage can be calculated by subtracting total…

Q: Daryl Yap invested the amount of Php100,000 in a bank that offers 15 % per annum simple interest.…

Q: Cardo borrowed money from a local cooperative. He received P18,420 but promised to pay P20,000 in…

A: Present Value = 18,420 Future Value = 20,000

Q: Leo wants to have $6500 to buy furniture when he moves into an apartment in 3 years. He invested…

A: The future value is the future worth of the amount that will be paid or received at future.

Q: Jungkook purchased a new car under these terms: 800,000 php downpayment and 17,500 php each month…

A: Cash price is the price that will include the downpayment plus the present value of the loan.

Q: Mike Smith just turned 16 years old. He wishes to buy a used car in one year, and he is willing to…

A: The value of money changes with time. Therefore, the time value of money considers the money…

Q: Sandy, a manufacturing engineer, just received a year-end bonus of Php 31, 000.00 that will be…

A: Given Information: Present value of Savings = Php 31,000 Rate of interest = 8% per year Time = 20…

Q: 1. Buchoy deposits Php10 000 in a bank that pays 4% compound interest annually. How much money will…

A: Interest means the extra amount which we received because of investment made and will be paid in…

Q: A medical student who was offered by a Foundation Php100, 000 loan to finance his medical studies…

A: Here,

Q: In four years of employment, John was able to save P250,000 after he had invested on purchasing a…

A: The stock market is a location where traders may purchase and sell equities,investors can invest in…

Q: Ruby loaned 500,000 php in preparation for her daughter’s college education. The loan comes with 8%…

A: Note: This post has two questions, each with multiple sub-parts. The first question has been…

Q: Karl Yates needs $5,000 to pay for the remodeling work on his house. A contractor agrees to do the…

A: Given, The amount required is $5,000 Rate of interest is 6.3% Term is 10 months

Q: Assume that a carpenter borrowed $2,000 to be paid offin a year to finance a machine that would make…

A: The formula used to solve this problem: This is a type of simple interest problem. The final value…

Q: Being cautious with money, Cyril has contributed $1,700 at the start of every month into an RRSP,…

A: value of investment in 10 years from now can be calculated using following function in excel. FV…

Q: Moshe will need R145 000 in three years’ time, to open a bakery. He immediately starts to make…

A: The following formula will be used to calculate the monthly deposit:

Q: Mr. Rizki is a private employee who is currently planning to buy a car to support mobility in his…

A: The interest rate is used to calculate the amount of interest per period that will be paid. The…

Q: John made a down payment of RM20,000 toward the purchase of a car. He secured a 9-year loan from a…

A: Down payment (DP) = RM 20,000 Monthly payment (P) = RM 715 Period = 9 Years Number of monthly…

Q: Sergio purchased a house for $440,000; he paid $44000 as a down payment and financed the balance…

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

Q: How much will be her savings after 8 years?

A: PMT is $6,000 semi annually, n= 12 compounding monthly, t=1/2 , 1, 3/2 , 2, 5/2, 3, .....8 which is…

Q: George used to work as a research analyst earning $80,000 per year. George has decided that he has…

A: Accounting profits only includes explicit costs such as material, labor, overheads, which are…

Q: Cardo invested a certain amount at 20% simple interest per year. After 8 years, the interest she…

A: solution concept under simple interest the interest is calculated on the principal amount only .…

Q: Joan Hart borrowed $9,800 to travel to France to see her son Dick. Joan’s loan was to be paid in 50…

A: A loan rebate signifies the amount saved by paying a loan early. The amount is generally saved from…

Q: A salesman earns a salary of $2000 per month plus 4% of all sales he make. The salesman make $25000…

A: Formula: Total Income = Salary + Bonus Sum of both salary and bonus derives the total income per…

Q: Karl Yates needs $6,000 to pay for the remodeling work on his house. A contractor agrees to do the…

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

Q: how much did Juan have

A: Introduction: A specific kind of retirement savings account is a 401(k) plan. It is a tax-deferred…

Q: The Carp family makes a $30,000 down payment on a $150,000 home. They finance it for 15…

A: Data given: Property amount ($) 150000 Down payment ($) 30000 Time (in years) 15…

Q: A young engineer borrowed P 10,000 at 12% interest and paid P 2,000 per annum for the last 4 years.…

A: Loan amount = P 10000 Interest rate = 12% Annual payment = P 2000 Number of annual payments = 4

Q: Kween Yazmine's mother borrowed Php35,000 to fix their car. The bank charges 5% interest for two…

A: Borrowed amount (PV) = Php 35,000 Interest rate (r) = 5% Period (n) = 2 Years

Q: Bob purchases a car for $28,000. He makes $640 a month payments for 36 months on a 6.9% interest…

A: Excel formulas:

Q: You need Php 80,000 per year for four years to go to college. Your father invested Php 100,000 in a…

A: Investment = Php 100,000 Interest rate = 7% Annual fees = Php 80,000 Number of payments = 4 Future…

Q: After graduation, you plan to work for Asia Corporation for 12 years and then start your own…

Q: Aretha ran up $38,800 on her credit card, which charges 13.95%. If she decides to cut up her card…

A: A stream of equal cash flows (CF) paid or received periodically is termed as annuity. Annuity is…

Q: Last January, Robyn bought a laptop worth Php 48,000 on loan. To pay off th made monthly payments of…

A: In this we need to calculate the the present value of loan paid and than find out the monthly…

Q: Irmgard borrowed ¢7 million from her friend at a rate of 21% converted monthly 2 years ago. If no…

A: Loan is a contract between lender and borrower where lender provide funds to borrower for definite…

Q: A man bought his girlfriend a new necklace for $259. Instead of paying cash, he paid $19 down,…

A: Time has been precious in all perspectives, however in terms of finance, time has a monetary value.…

Q: Ria buys a two-year-old Honda from a car dealer for P450,000. She puts P150,000 down and finances…

A: Equated monthly installments(EMI) is the equally divided monthly installments that outgoes to clear…

Q: Ericson deposited PhP 35,000 into his savings account that earns 4% interest. How much will he have…

A: Interest is calculated by multiplying the principal and rate by the time period.

Q: Farouk bought an electric appliance through an instalment plan which he paid RM200 down payment. He…

A: Down payment (DP) = RM 200 Monthly payment (P) = RM 120 Annual interest rate = 5% Monthly interest…

Q: Mr smith wants to borrow P100,000 from a bank to rebuild his shop from damages caused by an…

A: First we need to calculate size of quarterly payment of loan amount. PMT =PV*i1-1(1+i)n where PV…

Q: Marlon borrowed 15,000 Php from a lending company that charges a simple interest rate of 11%.…

A: Borrowed amount = 15000 Php. Interest rate = 11%

Q: Mr. So borrowed Php200,000 from a cooperative that charges 15% yearly. He used the loan to start his…

A: The amount to be paid after 18 months can be calculated as the future value of loan. Given, Present…

Q: Last year, Charlie had $30,000 to invest. He invested some of it in an account that paid 10% simple…

A: Simple interest is one of the methods of calculating interest in which interest is calculated only…

Q: Cathy borrowed $24,000 to buy a new car and expects to pay $400 per month for the next 3 years to…

A: Compound interest is also interest on interest that is the interest which is accumulated on the…

Concept explainers

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.

Question

Mr. So borrowed Php200,000 from a cooperative that charges 15% yearly. He used the loan to start his food stand business. How much will he pay for the loan after 18 months?

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 with 2 images

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

Carlos opens a dry cleaning store during the year. He invests 30,000 of his own money and borrows 60,000 from a local bank. He uses 40,000 of the loan to buy a building and the remaining 20,000 for equipment. During the first year, the store has a loss of 24,000. How much of the loss can Carlos deduct if the loan from the bank is nonrecourse? How much does Carlos have at risk at the end of the first year?
Today, Engr Santos borrowed Php 250,000 to purchase furniture for her new office. She can repay the loan in five equal annual installments with interest based on 5% per year. How much is the annual installment starting next year?
Joshua borrows 35,000 pesos from a cooperative to buy a laptop. He will repay the loan in equal monthly payments over 2 years at the end of each month. If he is charged 10% interest compounded monthly, how much is his monthly payment? What is the total amount that he repays?
Kiki bought a computer for Rp. 8,000,000, -. If he bought itWith credit, he must prepare advance money and be able to pay the rest byInstallments every month for 9 months with 24% interest. If he wants biginstallments per month are exactly Rp. 800,000, - according to his income, how much advance money that he must prepare.
Ericson deposited PhP 35,000 into his savings account that earns 4% interest. How much will he have after 18 months?
Kristine bought a smartphone worth Php72,000 and made a downpayment of Php15,000. The remaining balance must be paid every 4 months for 3 years. How much is her regular payment if the interest rate is 3% compounded every 4 months?
In order to start a small business, Samy borrowed RM40, 000 from a bank. The loan is repaid by monthly installment for five years. The interest charged is 5% on the original balance. (a) Determine the monthly payment. (b) Immediately after paying for three years and six months, he decided to pay off the loan. Using the Rule of 78, calculate the amount he has to pay.
Michael borrowed RM420,000 to buy an apartment in Damansara. His loan cost was 6% and he promised to repay the loan in 30 equal annual payments. How much is the principal outstanding after the first loan payment?
Imelda took a loan of Php 950,000 from a financial institution to purchase a TV. If the company charges compound interest at 12% per annum during the first year and 12½% per annum during the second year, how much will she have to pay after 5 years?
Rose, recently purchased a new automobile for $25,000. She made a $5,000 down payment and financed the balance over 48 months using a loan with a 12 percent annual nominal rate of interest. What are her monthly payments?
Arianne borrowed $6200 to buy a vehicle to drive to school. She plans to study for 3 years, and then start her career using her education. Interest is charged on the loan at 7.64% compounded annually. If she starts making month-end payments of $230 when she begins working, how many payments will she have to make?
A businessman saves Php 6, 000 every 6 months in a bank that pays 0.25% compounded monthly.How much will be her savings after 8 years?