QUESTION 16 Consider the following statements and indicate whether they are true or false. For some of them, you will need to calculate the answers to confirm whether they are true or false A IR150 is lent at 12% pa simple interest, it yields R240 after 5 years A. True A Compounded interest is interest paid on previously earned interest plus the initial B. False principal amount C. True D. True E. True F. False A B. B. If R150 is invested at 12% pa compounded interest, it will yield R264,35 Straight line depreciation in accounting is similar to the compound interest concept You are provided with an interest rate of 12% per annum, the effective interest rate will be 12.45% A An annuity in which payments are made at the end of each period is an ordinary annuity B. A sinking fund is an example of the PV of an ordinary annuity here the first payment is made later than the G. True H. False 4

QUESTION 16 Consider the following statements and indicate whether they are true or false. For some of them, you will need to calculate the answers to confirm whether they are true or false A IR150 is lent at 12% pa simple interest, it yields R240 after 5 years A. True A Compounded interest is interest paid on previously earned interest plus the initial B. False principal amount C. True D. True E. True F. False A B. B. If R150 is invested at 12% pa compounded interest, it will yield R264,35 Straight line depreciation in accounting is similar to the compound interest concept You are provided with an interest rate of 12% per annum, the effective interest rate will be 12.45% A An annuity in which payments are made at the end of each period is an ordinary annuity B. A sinking fund is an example of the PV of an ordinary annuity here the first payment is made later than the G. True H. False 4

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 85E: ExerciseInstallment Notes ABC bank loans $250,000 to Yossarian to purchase a new home. Yossarian...

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ExerciseInstallment Notes ABC bank loans $250,000 to Yossarian to purchase a new home. Yossarian will repay the note in equal monthly payments over a period of 30 years. The interest rate is 12%. Required: If the monthly payment is $2,571.53, how much of the first payment is interest expense and how much is principal repayment? (Note: Round to the nearest cent.)
A Series EE U.S. government savings bond accrues 3.5% interest each year. The bond matures in three years, at which time the principal and interest will be paid. The bank will pay the taxpayer at a 3.5% interest rate each year if he agrees to leave money on deposit for three years. What tax advantage does the Series EE bond offer that is not available with the bank deposit?
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