Nissan-QC, borrowed P2,250,000 on April 16 to purchase a shipment of new cars. The interest rate was 9.3% using the ordinary interest method. The amount of interest was P9,600. a.For how many days was the loan? b. What was the maturity date of the loan?

Nissan-QC, borrowed P2,250,000 on April 16 to purchase a shipment of new cars. The interest rate was 9.3% using the ordinary interest method. The amount of interest was P9,600. a.For how many days was the loan? b. What was the maturity date of the loan?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 1PB: Sub-Cinema Inc. borrowed $10,000 on Jan. 1 and will repay the loan with 12 equal payments made at...

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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

Nissan-QC, borrowed P2,250,000 on April 16 to purchase a shipment of new cars. The interest rate was 9.3% using the ordinary interest method. The amount of interest was P9,600.

a.For how many days was the loan?

b. What was the maturity date of the loan?

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