Sagip Corporation borrowed P 9000 from Kalinga Corporation on Jan 1, 2000 and P 12000 on Jan 1, 2002. Sagip corporation made a partial payment of P 7000 on Jan 1, 2003. It was agreed that the balance of the loan would be amortized by two payments one of Jan 1, 2004 and the other on Jan 1, 2005, the second being 60% larger than the first. If the interest rate is 12%, what is the amount of the larger payment? O P 9426.27 O P15082.03 O P 8801.25 O P14082.01

Sagip Corporation borrowed P 9000 from Kalinga Corporation on Jan 1, 2000 and P 12000 on Jan 1, 2002. Sagip corporation made a partial payment of P 7000 on Jan 1, 2003. It was agreed that the balance of the loan would be amortized by two payments one of Jan 1, 2004 and the other on Jan 1, 2005, the second being 60% larger than the first. If the interest rate is 12%, what is the amount of the larger payment? O P 9426.27 O P15082.03 O P 8801.25 O P14082.01

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter21: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 10P: The D.J. Masson Corporation needs to raise $500,000 for 1 year to supply working capital to a new...

See similar textbooks

Similar questions

On January 1, Kilgore Inc. accepts a 20,000 non-interest-bearing, 5-year note from Dieland Company for equipment. Neither the fair value of the note nor the equipment is determinable. Kilgore had originally purchased the equipment for 18,000, and the equipment has a book value of 14,000 on January 1. Kilgore knows Dielands incremental borrowing rate of 9%. Prepare the journal entry for Kilgore to record the sale of the equipment on January 1.
Electro Corporation bought a new machine and agreed to pay for it in equal annual installments of 5,000 at the end of each of the next 5 years. Assume a prevailing interest rate of 15%. The present value of an ordinary annuity of 1 at 15% for 5 periods is 3.35. The future amount of an ordinary annuity of 1 at 15% for 5 periods is 6.74. The present value of 1 at 15% for 5 periods is 0.5. How much should Electro record as the cost of the machine? a. 12,500 b. 16,750 c. 25,000 d. 33,700
On January 1, 2019, Park Company accepted a 36,000, non-interest-bearing, 3-year note from a major customer in exchange for used equipment. The equipment had originally cost Park 200,000 and had a book value of 20,000 on the date of the sale. At the 12% imputed interest rate for this type of loan, the present value of the note is 25,500 on January 1, 2019. Park uses the effective interest rate. What is the carrying value of the note receivable on Parks December 31, 2019, balance sheet? a. 28,560 b. 29,000 c. 32,500 d. 36,000
Acosta holdings borrowed P9000 from smith corporation on January1, 1998 and P12000 on January 1,2000.Acosta holdings made a partial payment of P7000 on January1, 2001.It was agreed that the balance of the loan would be amortized by two payments. One on January 1,2002 and one January 1,2003.The second being 50% larger than the first.If the interestrate is 12%, what is the amount of each payment?
Jones Corporation borrowed P80,000 from Brown Corporation on Jan 1,1993 and P12,000 on Jan 1, 1995. Jones Corporation made a partial payment of P10,000 on Jan 1, 1996. It was agreed that the balance of the loan will be amortized by two payments, one on Jan. 1, 1997 and the other on Jan. 1, 1998, the second being 60% larger than the first. If the interest rate is 12%, what is the amount of each payment?
Sanchez corporation borrowed a working capital from Barroga Corporation for two consecutiveyears – Php 101250 and Php 105621, on January 1, 1996 and January 1, 1997, respectively. Sanchezcorporation made a partial payment of Php 79200 on January 1, 2000 and agreed with the lender thatthe balance of the loan would be amortized by 9 equal payments. The interest rate of the loan is12.5% compounded semiannually. Find the amount of each payment.
Sanchez corporation borrowed a working capital from Barroga Corporation for two consecutive years – Php 96000 and Php 103540, on January 1, 1996 and January 1, 1997, respectively. Sanchez corporation made a partial payment of Php 79900 on January 1, 2000 and agreed with the lender that the balance of the loan would be amortized by 8 equal payments. The interest rate of the loan is 16% compounded semiannually. Find the amount of each payment.
Jones Corporation borrowed $ 9,000 from Brown Corporation on 1978 and $12,000 on 1980. Jones Corporation made a partial payment of $ 7,000 on 1981. It was agreed that the remaining balance of the loan would be paid by two payments, one on 1982 and the other on 1983, the second being 50% larger than the first. If the interest rate is 12% compounded annually. a) What is the amount of the first payment? b) What is the amount of the second payment?
Jones Corporation borrowed ₱9,000 from Brown Corporation on Jan. 1, 1978 and₱12,000 on Jan. 1, 1980. Jones Corporation made a partial payment of ₱7,000 on Jan. 1, 1981. It was agreed that the balance of the loan would be amortized by twopayments, one of Jan. 1, 1982 and the other on Jan. 1, 1983, the second being 50% larger than the first. If the interest rate is 12%, what is the amount of each payment?Ans: ₱9,136.91; ₱13,705.36
FIVESIX Company, a lending institution lent P2,000,000 at 8.0000% perannum, to LAMANEH, Inc. The loan is payable after 5 years. Thecompany incurred direct origination costs of P200,000 and indirectorigination costs of P50,000. The company also charged origination feesto the borrower amounting to P295,000.The implicit interest rate on this loan is 9.2284%How much is the initial carrying value of the loan receivable?
On January 1, 2002, Cougar Company received a two-year $500,000 loan. The loan calls for payments to made at the end of each year based on the prevailing market rate at January 1 of each year. The interest rate at January 1, 2002, was 10 percent. Aggie company also has a twoyear $500,000 loan, but Aggie's loan carries a fixed interest rate of 10 percent. Cougar Company does not want to bear the risk that interest rates may increase in year two of the loan. Aggie Company believes that rates may decrease and they would prefer to have variable debt. So the two companies enter into an interest rate swap agreement whereby Aggie agrees to make Cougar's interest payment in 2003 and Cougar likewise agrees to make Aggie's interest payment in 2003. The two companies agree to make settlement payments, for the difference only, on December 31, 2003. If the interest rate on January 1, 2003, is 12 percent, what will be Cougar's settlement payment to/from Aggie? $5,000 payment $10,000 payment…
On January 1, 2018, Kline Inc. borrowed P9,000 from Harvard Co., and on January 1, 2020, it borrowed P12,000. On January 1, 2021, Kline Inc. paid a P7,000 half payment. The loan balance would be amortized over two payments, one on January 1, 2022 and the other on January 1, 2023, with the second payment being 50 percent bigger than the first. What is the amount of each payment if the interest rate is 10%?With a bit of explanation please.