Question Help ▼Scott invested a total of $5900 at two separate banks. One bank pays simple interest of 10% per year while the other pays simple interest at a rate of 8% per year.Scott earned $534.00 in interest during a single year, how much did he have on deposit in each bank?Scott had $on deposit at the bank that payed 10% interest.ur

The amount invested/ deposited by Scott at the bank that payed 10% interest is $3,100. Refer step 2…

Answered: Question Help ▼ Scott invested a total…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA3: Time Value Of Money

Section: Chapter Questions

Problem 15E

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Gifts Galore Inc. borrowed 1.5 million from National City Bank. The loan was made at a simple annual interest rate of 9% a year for 3 months. A 20% compensating balance requirement raised the effective interest rate. a. The nominal annual rate on the loan was 11.25%. What is the true effective rate? b. What would be the effective cost of the loan if the note required discount interest? c. What would be the nominal annual interest rate on the loan if the bank did not require a compensating balance but required repayment in three equal monthly installments?
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
Future Value of a Single Cash Flow Jenkins Products has just been paid $25,000 by Shirley Enterprises, which has owed Jenkins this amount for 30 months but been unable to pay because of financial difficulties. Had it been able to invest this cash, Jenkins assumes that it would have earned an interest rate of 12% compounded monthly (1% per month). Required: Note: Round answers to two decimal places. 1. Prepare a cash flow diagram for the investment that could have been made if Shirley had paid 30 months ago. 2. Determine how much Jenkins has lost by not receiving the $25.000 when it was due 30 months ago. 3. CONCEPTUAL CONNECTION Indicate whether Jenkins would make an entry to account for this loss. Why or why not?

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