Answered: On March 15th Ron went to the bank to…

On March 15th Ron went to the bank to borrow $3,000 at 8.5% interest. Ron plans to repay the loan July 1st. Assume ordinary interest. How much will Ron repay?

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 15E

See similar textbooks

Related questions

Q: Pedro borrows P300,000.00 from lender ABC today at 12% compounded monthly. To fulfill his obligation…

A: As you have asked a question with multiple parts, we will solve the first 3 parts as per policy of…

Q: HiLo purchased inventory for $30,000 by signing a 4% 4-month note. How much would HiLo need to repay…

A: Notes are instrument issued by company acknowledging the debt raised by company . It is a liability…

Q: Andrew Bolkonsky borrows $200,000 to purchase a house for investment purposes on January 1st 2006.…

A: The concept of present value states that a sum of money is worth today more than the same sum of…

Q: On May 1, 2020, Hazel borrowed a sum of money from Far East Bank , payable for 2 years at 8% simple…

A: The amount of Simple interest is obtained by multiplying the rate of interest and the time period in…

Q: Kris borrows some money in her senior year to buy a new car. The car dealership allows her to defer…

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

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

Q: Rahma borrowed OMR 600 at the rate of 12% from Bank Dhofar for 6 years. Find the interest she will…

A: Given taht, Loan amount = OMR600 Rate of interest = 12% Number of year for which loan has taken =…

Q: Grace borrowed P150,000 payable in 2 years. To repay the loan, she must pay an amount every month…

A: The PMT function is a type of financial function which helps to determine the total monthly payment…

Q: Dan opens a line of credit at a local bank, and immediately borrows 2080 dollars. 5 months later, he…

A: A financial instrument that provides never-ending borrowing and paying facility to the borrowers is…

Q: Claudia intends to accumulate $35,000, so 6 months earlier she opens an account with $7,500, earning…

A: Simple interest = Principal * interest * time Amount = Principal + simple interest Amount =…

Q: On September 19, Lynn Knight joined a Christmas club. Her bank will automatically deduct $100 from…

A: a) Computation: Hence, the future value is $201.50.

Q: Adrian received the proceeds from an inheritance on May 14. He wants to set aside enough on May 15…

A: Simple interest is calculated directly on the given principal amount. The formula for calculating…

Q: Diego invested 10,500 the bank gives him 2,520 simple interest per month.If you receive 2,520 as…

A: Solution:- Interest means the increase in amount invested for a certain time period for deferring…

Q: Salma borrowed $600from a bank for 2 years and was charged simple interest. The total interest that…

A: The annual interest rate on the loan is calculated using the simple interest formula given as below:…

Q: 17. In January, Joanna deposited $250 into her savings account. In February, she deposited an…

A: Solution:- When an amount is invested somewhere, it earns interest.

Q: Tom borrowed money from a credit union for 6 years and was charged simple interest at an annual rate…

A: The loan is the sum of money borrowed by the borrower from the lender, where the borrower agrees to…

Q: Homer promises to pay $1,000 at the end of 6 months in obtaining a loan from a banker who charges 6%…

A: Loan amount (PV) is $1,000 Loan Period is 6 months Interest Rate charged in advance is 6% (We…

Q: Dominic Torreto borrows $300,000 from a lending company in his hometown at 12% interest compounded…

A: Loan Amount = $300,000 Interest rate = 12% Time Period = 6 Months

Q: Isabelle makes deposits of $365 monthly (at the end of each month) into an account that pays 1.5%…

A: Annuity refers to series of equalized payments that are either made at start or end of specific…

Q: Jason borrowed $2,500 on March 1 from a bank and promised to pay back the money in 90 days at 6%…

A: Amount borrowed “P” = $2500 Number of days “n” = 90 Stated rate of interest = 6%

Q: Leslie and Mackoy both opened a savings account with a starting balance of P20,000 on the first day…

A: Given: Balance = P20,000 Interest rate = 8% Periods = 5 years

Q: On March 1, 2012, Jason's Deli loaned $12,000 to Mark Johnson for one year at 5 percent interest.…

A: Given the following information: Principal amount: $12,000 Interest rate: 5% Time period: from…

Q: Gabe opened an RRSP deposit account on December 1, 2008, with a deposit of $2000. He added $2000…

A: Computation:

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

A: Future value of an investment is the combined sum of the principal amount and interest amount.…

Q: Jennifer Richards went to her credit union to borrow $5,500 at a rate of 8.11 % p.a. The date of the…

A: Data given: P=Loan amount = $ 5,500 r=Rate= 8.11% p.a. Date of the loan = September 7 Date of…

Q: Sixteen Months after borrowing money, Ronron Cayabyab Pays an interest of ₱8,426. How much did he…

A: Simple compound interest calculation is a technique for calculating the portion of interest paid to…

Q: Amy has accumulated a credit card debt of $7,100 and she has decided to pay it off over the next 3…

A: The question is based on the concept of repayment of loans on reducing balance method. The loan…

Q: Tristan and Bella borrowed $1,700 to buy a dog at 7.5% interest on March 10. They plan to repay the…

A: Given, Amount borrowed = $1,700 Interest rate = 7.5% Loan borrowed = March 10 Repay loan = August 15

Q: Sean purchased an interest-bearing promissory note for $11,000.00 at 5.00% p.a., due in 90 days. If…

A: The promissory note refers to a debt instrument that is issued by a person who writes a note by…

Q: Pedro borrows P300,000.00 from lender ABC today at 12% compounded monthly. To fulfill his…

A: As you have asked a multiple subpart question, we will answer the first three subparts for you. To…

Q: Max borrows $15,500 for her last 2 years of college, acquiring a federal student loan at 8%…

A: Federal student loans, also known as government loans, allow students and their parents/guardians to…

Q: George borrowed $1,500 from Sally on April 13, 2018. George repaid the loan on September 20, 2018,…

A: Given Information: Principal amount = $1,500 Interest = $60

Q: Ahmed Yehda borrowed $8,000, signing a promissory note for 2.5 years at 15% interest. What was the…

A: Promissory note is one of the ways to borrow the amount for a particular period and specific amount…

Q: Suat opens a deposit account in a bank by depositing 10,000 TL. In addition, he will deposit 6,000…

A: Initial Deposit = 10,000 Deposit after one year = 6000 Deposit after two years = 4000 Value in…

Q: On September 8, Bert Sarkis joined a Christmas club. His bank will automatically deduct $100 from…

A: Therefore, the future value is $302.

Q: On May 30, 2021, Fred loaned ₱150,000 in a bank. It was agreed that he will pay the amount with a 6%…

A: Whenever we need to borrow funds for the business, it can be from internal members or from outside…

Q: Pedro borrows P300,000.00 from lender ABC today at 12% compounded monthly. To fulfill his obligation…

A: Loan Amount = P 300,000 Interest rate = 12% Time Period = 6 Months

Q: Jamal has been approved for a $215,000 loan, 30- year mortgage with an APR of 4.3%. He made a 10%…

A: Annual percentage rate refers to the rate of interest charged on the borrowed funds from the lender…

Q: Jack borrowed $12,000 from a bank for 3 years at 15% interest annually. What is the total…

A: Simple interest is the fixed rate of interest which is paid or payble on amount borrowed. It is…

Q: On April 16, Anthony borrowed$1279 to buy a new laptop. The loan had a simple interest rate of 3.8%…

A: The main source of income for banks or financial institutions is the difference between the interest…

Q: Lamis borrowed OMR 10,000 from Bank Muscat with an interest rate of 5% for 3 years. The amount she…

A: The amount that has to pay after three years is the sum of principal and compound interest on the…

Q: How much must Riley have in the account for Scott to receive the $220 payments for 5 years? If Riley…

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

Q: Jack has borrowed money from his financial institution, and has agreed to pay $200 at the end of…

A: To calculate amount borrowed when monthly payments are given, present value of annuity formula will…

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: Deon borrowed money from a credit union for 2 years and was charged simple interest at an annual…

A: given information total interest paid = $144 annual interest rate = 8% credit union = 2 years

Q: interest will she pay when she repays her loan on June 15? 2. What is the total amount

A: A loan amount refers to the amount which a person should borrow from the bank or financial…

Q: Eleven months after borrowing money, Dorah pays an interest of ₱2,800. How much did she borrow if…

A: In order to find the principal amount one has to find the yearly interest rate and then principal.

Q: Oliver takes out a home loan of $960,000. For the first 10 years, he only repays the interest amount…

A: Here, Loan Amount is $960,000 Opening Balance at 132 Payment is $914,997.77 Interest Paid on 132…

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

On March 15th Ron went to the bank to borrow $3,000 at 8.5% interest. Ron plans to repay the loan July 1st. Assume ordinary interest. How much will Ron repay?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 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

Samuel Ames owes 20,000 to a friend. He wants to know how much he would have to pay if he paid the debt in 3 annual installments at the end of each year, which would include interest at 14%. Draw a time line for the problem. Indicate what table to use. Look up the table value and place it in a brief formula. Solve.
Sally is in the business of purchasing accounts receivable last year Sally purchased an account receivable with a face value of 83,000 for 60,000. During the current year, Sally settled the account, receiving 65,000. Determine the maximum amount of the bad debt deduction for Sally for the current year.
Refer to the present value table information on the previous page. What amount should Brett have in his bank account today, before withdrawal, if he needs 2,000 each year for 4 years, with the first withdrawal to be made today and each subsequent withdrawal at 1-year intervals? (Brett is to have exactly a zero balance in his bank account after the fourth withdrawal.) a. 2,000 + (2,000 0.926) + (2,000 0. 857) + (2,000 0.794) b. 2,0000.7354 c. (2,000 0.926) + (2,000 0.857) + (2,000 0.794) + (2,000 0.735) d. 2,0000.9264
On April 16, Anthony borrowed$1279 to buy a new laptop. The loan had a simple interest rate of 3.8% and was for 225 days. Anthony made a partial paymentof$700 on July 19. How much will Anthonyowe on the date of maturity of the loan?
Jason borrowed $2,500 on March 1 from a bank and promised to pay back the money in 90 days at 6% interest using the 360-day Banker's Method. What amount will Jason pay the bank when the loan is due?
Sixteen Months after borrowing money, Ronron Cayabyab Pays an interest of ₱8,426. How much did he borrow if the simple interest rate is 12 1/4%?
Miss Evilla borrowed money from a bank. She receives from the bank P1,340.00 and promised to pay P1,500.00 at the end of 9 months. Determine the corresponding discount rate or often referred to as the “banker’s discount”?
Dave borrowed $1,300 on January 1, 2022. The bank charged him a $5.00 service charge, and interest was $78.20. If Dave paid the $1,300 in 12 equal monthly payments, what was the APR?
Jessica borrowed $25,000 on January 15 at a variable interest rate of 5%. On March 22, the rate increased to 6%. 1. How much interest will she pay when she repays her loan on June 15? 2. What is the total amount that she will end up paying for this loan?
Joshua borrowed $500 for one year and paid $50 in interest. The bank charged him a service charge of $5. If Joshua repaid the loan in 12 equal monthly payments, what is the APR? (Enter your answer as a percent rounded to 1 decimal place.)
Jack has borrowed money from his financial institution, and has agreed to pay $200 at the end of each month for six years. The bank charges interest on the loan at 6.6% compounded quarterly. How much did Jack borrow? How much is the cost of financing (The amount of interest to be paid)?