on 2 A student deposits $400 at the end of every 3-months for five years into an account that earns interest at ja = x%. At the end of five years, they have accumulated $11,000. Using linear interpolation, determine x. %3D

on 2 A student deposits $400 at the end of every 3-months for five years into an account that earns interest at ja = x%. At the end of five years, they have accumulated $11,000. Using linear interpolation, determine x. %3D

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 1PA: On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10%...

See similar textbooks

Related questions

Q: The amount of interest earned in 11 years on Php 1,000,000 deposited in an account paying 8%…

A: Option A . True Formula : F = P(1+r/n)^nt Where F = Future Value P = Present Value or…

Q: Connie made deposits of $2,000 at the beginning of each year for four years. The rate she earned is…

A: Given:

Q: George deposits $500 at the end of each quarter for 6 years, in an account paying 12 % compounded…

A: Annuity means a set of finite number of payments made in equal intervals of time for a certain…

Q: Find the amount that the balance decreases in year two.

A: Given Loan = 4000 period = 8 years interest rate = 9% To calculate the payment per period…

Q: A person deposits ¢ 1,000 annually, in an account for 5 years, at the end of the 5 years, withdraws,…

A: The future value method for compounding the amount is important in financial management. It helps in…

Q: On March 12, Nada joined a saving account. Her bank will automatically deduct BD 200 from her…

Q: 2. A man bought an equipment consisting Php 60,000 payable in 12 quarterly payment, each installment…

A: Cash price (PV) = P 60,000 Number of quarterly payments (n) = 12 Interest rate = 24% Quarterly…

Q: CJ borrowed from a bank at 3.34% compounded semi-ann $1,049 at the end of every six months for 7…

A: The periodic payments are paid to pay the loan and these periodic payments carry the payment for…

Q: James deposits $1000 at the end of each quarter for 10 years, in an account paying 18 % compounded…

A: Quarterly deposit (P) = $1000 Period = 10 Years Quarterly period (n) = 10*4 = 40 Interest rate = 18%…

Q: Calvin invests $3,200 at an APR of 5.3% compounded monthly. Hobbes invests $3,150 at an APR of 6%…

A: Calvin has higher balance at the completion of 2 years. The working is shown: Formulation is shown:…

Q: r deposits £1,000 into an account that pays annual compounded interest of 9% . The value of the…

A: The given problem can be solved using FV function in excel. FV function computes amount balance in…

Q: nifer deposited $54,000 at Bank of America at 20% interest compounded quarterly. a) What is the…

A: In this we need to find out the effective annual rate.

Q: de to invest $7,500 into an account that pays 1.1% annual compound interest. Write an equation for…

A: Given information : Investment amount = $7500 Interest rate = 1.1% The given question is asking for…

Q: An amount of $1900 is deposited for 7 years in an account that earns 4% interest. (Round your…

A: Future Value = Present Value * (1+r)^n Where r = rate of return per period i.e. 4%/365 = 0.010959%…

Q: During four years of college, Nolan MacGregor's student loans are $4,000, $3,500, $4,400, and $5,000…

A: “Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…

Q: A bank offers an investment account with an annual interest rate of 1.49% compounded quarterly.…

A: Using excel FV function

Q: John deposits an amount of X into an account at time 0. The account balance at the end of 10 years…

A: Accumulated amount represent the sum of amount deposited and total interest due over the period.…

Q: For numbers 4 to 5: Maria wants to have ₱750,000.00 at the end of 4 years for her graduation…

A: An annuity is made when a person deposits a set amount of money in a bank or other financial…

Q: 1. Tim deposits P750 every end of 3 months in an account paying 5% interest compounded quarterly.…

A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…

Q: . Elmo borrowed $25,000 from the Statler & Waldorf Bank at 12% APR, compounded monthly. The loan is…

A: Loan amount (PV) = $ 25,000 Annual interest rate = 12% Monthly interest rate (r) = 12%/12 = 1%…

Q: Cameron opened an RRSP account and deposited $3,800 into it. He then deposited $800 at the end of…

A: Deposit now = $ 3800 Deposit at the end of year 1 = $ 800 Deposit at the end of year 2 = $ 475…

Q: essman invested $ 1,000 and after 4 years, it becomes $ 1,608.44 invested at a certain interest…

A: The given problem can be solved using RATE and EFFECT function in excel. RATE function computes…

Q: A woman deposited $10,000 into an account at her credit union. The money was left on deposit for 10…

A: Investment = 10,000 Total Time Period= 10 years First 5 years, 9% interest compounded monthly,…

Q: Assume that you deposit $1,000 in an account earning 5% simple interest for 3 years. What is the…

A: Given: Deposit = $1,000 Interest rate = 5% Years = 3

Q: 20. An investor deposits £1,000 into an account that pays continuously compounded interest of 9%…

A: GIVEN ÷ Amount deposited = £1000 Continuously compouded interest rate = 9% Time of deposit = 6 years…

Q: Bram Johnson invests $500 at the end of each quarter for 10 years. The account earns 12% interest…

A: Given:

Q: Cynthia Reynolds deposited $22,000 in an account paying interest of 4% compounded annually. Click…

A: Lets understand the basics. Compounding interest is a interest calculated on the principle as well…

Q: Encik Azhar deposited RM500 every quarter for five years in an account that paid 3.85% interest…

A: Here, Quarterly Deposit is RM 500 Interest Rate (r) is 3.85% Compounding Period (m) is Quarterly…

Q: MJ deposited 1,000, 1,500, and $2,000 at the end of the 2nd year, 3rd year and 4th year,…

A: The future value of deposits refers to the sum of the value of the deposits with the interest earned…

Q: Brian opened an RRSP account and deposited $3,300 into it. He then deposited $800 at the end of the…

Q: Ali invested 5000 Rials in a saving account that paid quarterly interest. After 6 years the money…

A: answer : let us first not down the information given in the question initial investment = 5000…

Q: A saver places £7,000 in an account. The account pays interest at the rate of 5% per year. She…

A: Using the equation M = P (1 + i)n M= 7000(1+5%)^4 = 8508.54

Q: Who has a bigger balance at the end of 7 years?

A: Time value of money(TVM) is the money worth today will be more than that of the money received for…

Q: Campus Flights takes out a bank loan in the amount of $300,000 on March 1. The terms of the loan…

A: Loan: A loan is a kind of debt that may be undertaken by a person or by a business. A quantity of…

Q: Find the amount of loan taken by Rahimah.

A: Information Provided: Payment every 2 months = PM 2,106.71 Term = 8 years Interest rate = 6%…

Q: Lee Holmes deposited $16,100 in a new savings account at 8% interest compounded semiannually. At the…

A: Future Value is an estimation in finance based on the past data and current initial investment. It…

Q: 10. Miss Calledo deposited P 1,000, P 1.500 and P 2,000 at the end of the 2nd year, grd year and 4th…

A: Deposit in year 2 = P 1000 Deposit in year 3 = P 1500 Deposit in year 4 = P 3000 Annual interest…

Q: 3- Suppose that $2700 is deposited in an account that earns 4% interest. How much is in the account…

A: Amount deposited in account allows an investor to take benefit of compounding as Interest paid after…

Q: Deposits are made at the end of Years 1 through 7 into an account paying 3%. The first deposit…

A: Present value is the current value of future cash flows at a given discount rate. It is given as: PV…

Q: Suppose $3500 is deposited in an account paying 4% interest compounded continuously for 5 years.…

A: The total amount of interest accrued at the end of 5 years is computed by deducting the principal…

Q: On January 1 of this year, Shannon Company completed the following transactions (assume a 9% annual…

A: SOLUTION- PRESENT VALUE = FUTURE VALUE / (1+i)^n PRESENT VALUE FACTOR @ 9%. YEARS PRESENT…

Q: Lee Holmes deposited $15,300 in a new savings account at 8% interest compounded semiannually. At the…

A: Given Information: Amount deposited - $15,300 Rate of interest - 8% compounded semiannually Amount…

Q: A person deposits $2750 in an account that yields 3.5% interest compounded annually. Set up a…

A: Deposit amount (D) = $2750 Annual yield (r) = 3.5%

Q: 4) Megan invests $2,000 at the end of each year into an account earning 3% effective annual…

A: Amount invested at the end of each year =$2000 Effective annual Interest =3% Effective Annual…

Q: Crystal deposited $16,000 in a new savings account at 7% interest compounded semiannually. At the…

A: Future value is worth of an account at future date where amount gets added with interest with the…

Q: Calvin invests $3,200 at an APR of 5.3% compounded monthly. Hobbes invests $3,150 at an APR of 6%…

A: a) Computation:

Q: Ms. Parajas deposited 16,400 in an account earnings 3% interest compounded quarterly. How much is in…

A: Introduction Interest may be defined as that type return which is expected by the lenders from the…

Q: Melanie invests a total of $7,000 in two accounts paying 6% and 7% annual interest, respectively.…

A: A given sum of money can be invested in various sources to achieve maximum returns.

Q: Ms. Quinto deposited 16,400 in an account earnings 3% interest compounded quarterly. How much is in…

A: Introduction Interest may be defined as that type return which is expected by the lenders from the…

Concept explainers

Risk and return

Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary.

Capital Asset Pricing Model

Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.

Question

100%

on 2
A student deposits $400 at the end of every 3-months for five years into an
account that earns interest at ja = x%. At the end of five years, they have
accumulated $11,000. Using linear interpolation, determine x.
%3D

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

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

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?
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.
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
Everglades Consultants takes out a loan in the amount of $375,000 on April 1. The terms of the loan include a repayment of principal in eight, equal installments, paid annually from the April 1 date. The annual interest rate on the loan is 5%, recognized on December 31. (Round answers to the nearest cent, if needed.) A. Compute the interest recognized as of December 31 in year 1. B. Compute the principal due in year 1.
Campus Flights takes out a bank loan in the amount of $200,500 on March 1. The terms of the loan include a repayment of principal in ten equal installments, paid annually from March 1. The annual interest rate on the loan is 8%, recognized on December 31. (Round answers to the nearest whole dollar if needed.) A. Compute the interest recognized as of December 31 in year 1 rounded to the whole dollar. B. Compute the principal due in year 1.
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.
Sub-Cinema Inc. borrowed $10,000 on Jan. 1 and will repay the loan with 12 equal payments made at the end of the month for 12 months. The interest rate is 12% annually. If the monthly payments are $888.49, what is the journal entry to record the cash received on Jan. 1 and the first payment made on Jan. 31?
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.
Pickles R Us is a pickle farm located in the Northeast. The following transactions take place: A. On November 6, Pickles borrows $820,000 from a bank to cover the initial cost of expansion. Terms of the loan are payment due in six months from November 6, and annual interest rate of 3%. B. On December 12, Pickles borrows an additional $200,000 with payment due in three months from December 12, and an annual interest rate of 10%. C. Pickles pays its accounts in full on March 12, for the December 12 loan, and on May 6 for the November 6 loan. Record the journal entries to recognize the initial borrowings, and the two payments for Pickles.
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.)
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.
Cash Flow Amounts R. Lee Rouse borrows 10,000 that is to be repaid in 24 equal monthly installments payable at the end of each subsequent month with interest at the rate of 1% per month. Required: Using the appropriate table, calculate the equal installments.