Soledad receives a bill for P18,000 dated July 7 with terms 6/15, 4/30, n/60. What cash discount will she received if she pays (a) in 15 days; (b) on the 25th day; and (c) on the 40th day? Round to the nearest centavo

Soledad receives a bill for P18,000 dated July 7 with terms 6/15, 4/30, n/60. What cash discount will she received if she pays (a) in 15 days; (b) on the 25th day; and (c) on the 40th day? Round to the nearest centavo

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: For items 16-30, when asked about an amount of money (interest, discount, present value, future…

A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…

Q: Margeaux's bill of P6 000 was due on March 6. A purchase of P 2 000 was made on March 18 and P 4 500…

A: Current balance of Margeaux's bill on the 6th of the month is P7891.39

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: Roscoe signs a note for $2000 due in 18 months at 15% monthly. After five months, Gertrude sells it…

A: The present value would be considered as the value of the future value which is being received…

Q: Trevor purchased a 90-day interest-bearing note at 4.80% p.a. that has a face value of $25,000.00.…

A: Solution:- When an interest bearing note is purchased, it provides interest to the holder. So,…

Q: how much would each monthly payment be? (Please round to two decimal places)

A: The Monthly installment can be calculated using the following formula = P ×r(1+r)n÷ ((1+r)n-1)…

Q: A mother purchases a piece of furniture for P25,000. She pays a 20% down payment and agrees to pay…

A: Finance charge is calculated by multiplying simple interest rate by the value of the borrowed…

Q: A mother borrowed P200.000 with 2% interest monthly and promised to pay the amount in 30 equal…

A: EMI or Equated monthly installment is an arrangement entered between the lending institution and the…

Q: Sam Monte deposits $21,500 into Legal Bank, which pays 6% interest that is compounded semiannually.…

A: Using excel PV function

Q: Ron Prentice bought goods from Shelly Katz. On Aug. 15, Shelly gave Ron a time extension on his bill…

A: Formula: Maturity value = Principle value + Interest value.

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: Caridad borrowed $17,500 at 11% ordinary interest for 160 days. After 60 days, she made a partial…

A: The final amount is computed by adding the loan amount and interest due and then subtracting the…

Q: Calvin Johnson has a $4,500 debt balance on his Visa card that charges 13.3 percent APR compounded…

A: Here, Debt Amount of Credit Card is $4,500 APR is 13.3% Compounding Period (m) is Monthly i.e 12…

Q: Jasmine is making monthly contributions of of $340 to her savings account which pays Interest at the…

A: Given:

Q: Jefrey Yang receives a bill of P30,500 dated January 13 with terms, 7, 5/10 and n/30. What cash…

A: As per payment terms, Jefrey Yang will get 7% discount if paid immediately, 5% discount if paid…

Q: Margeaux's bill of P6 000 was due on March 6. A purchase of P 2 000 was made on March 18 and P 4 500…

A: Average daily balance is calculated as the average of the account balance at the end of each billing…

Q: Fatin buys a new café furniture worth RM 9,200. She receives an invoice dated 19 April 2021 with…

A: Fatin buys a new café furniture worth RM 9,200. She receives an invoice dated 19 April2021 with…

Q: OSarah began her credit card billing cycle with a zero balance, and her billing date is March 20.…

A: Bill Date 20-Mar Purchase date 21-Mar Amount $ 4,600.00 Bill Date 24-Mar Due…

Q: Calvin Johnson has a $5,000 debt balance on his Visa card that charges 13.8 percent APR compounded…

A: Data given: Debit balance =$5000 APR compounded monthly =13.8% /12 = 0.0115 a) Minimum monthly…

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: 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: A man received an invoice dated March 9, with term 3/10, n/30 amounting to $510. He paid the…

A: Formula to calculate cash discount:Cash discount = cash amount * Discount rate

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: On August 19, Siobhan O’Sullivan started an ordinary annuity. She arranged to have $150 deducted…

A: Annuity refers to the fixed periodic payments which are paid monthly, quarterly, semi-annually or…

Q: Jasmine is making quarterly contributions of of $440 to her savings account which pays interest at…

Q: Nesrin, purchased a new car for $9,420, paying $3,000 down payment and agreeing to 12 monthly…

A: Credit rate: The amount charged for a credit loan or purchase is usually represented as a…

Q: Eugene is offered a 5% discount for immediate payment of a bill which is due in 90 days. What is the…

A: Simple interest rate is the rate which is calculated without taking any compounding frequency.

Q: zack borrowed $30,000 at 9 % on July 23, 2020. He repaid $15,000 on October 21 and $10,000 on…

Q: Jill Walsh purchases a bedroom set for a cash price of $3,920. The down payment is $392, and the…

A: The goods financing system refers to a system in which the buyer can use the goods without paying…

Q: Ron Prentice bought goods from Shelly Katz. On April 5, Shelly gave Ron a time extension on his bill…

A: Given, Principal (P) = $3,200 Rate of interest (R) = 9% Time (T) = 155 / 360 = 0.4305 I = P* R * T…

Q: A mother borrowed 180,378 with 0.09 compounded monthly and promised to pay the amount by 20 equal…

A: The monthly payment can be calculated by using the present value of annuity function

Q: Engr. Russel Clarete loan an amount of P200,000 at a local commercial bank at 12% compounded…

A: The series of monthly payments discussed here is a form of annuity wherein an equal payment is made…

Q: On August 1, Rachael Westlake joined a Christmas Club. Her bank will automatically deduct $105 from…

A: Monthly Deposit is $105 First Deposit starts on 1st August Closing of Account on 1st December…

Q: Engr. Salvador has to pay her bill in credit card in instalment basis. First payment is P50,000 at…

A: Calculation of total payment of Engr. Salvador after 10 years at the rate of 10% per annum: Payment…

Q: A widower was granted a loan of P20,000 by her employer with an interest of 6% for 3 months. The…

A: A promissory note is a type of debt instrument that consists of a written pledge by one party (the…

Q: Hannah received an invoice in the mail from Carpet Country for $4235. The invoice was dated March 22…

A: Given, Hannah received an invoice in the mail from Carpet Country for $4235 Invoice was dated March…

Q: In October, a store offers the public a "Buy Now Pay Later" sales plan. With this plan, Mrs.…

A: Interest rate (r) = 55% per annum = 4.5833% per month Number of installments (n) = 12 Monthly…

Q: how large must each payment be for you to end up with $1,000 on January 1, 2022?

A: Time value of money (TVM) means that the amount of money received in the present period will have…

Q: Fatin buys a new café furniture worth RM 9,200. She receives an invoice dated 19 April 2021 with…

A: Cash discount: Cash discount is an incentive provided by the selling party to the purchaser for a…

Q: 8) Sara accepted a bill of exchange from Sharooq for OMR6,000 at 2% for 2 months. After the due…

A: The bill of exchange is created as a promissory note to make payment on due date.

Q: Billy accepts a 6%, 22,000 note due in 60 days. What is the total amount Billy will receive when…

A: Interest on Notes = Face value of note x rate of interest x no. of days / 365 days = 22,000 x 6% x…

Q: On February 14, 2014, Rogine borrowed Php60,250 at 7% compounded semiannually. How much does he…

A: Solution:- When an amount is borrowed, it has to be repaid along with interest. The amount borrowed…

Q: Engr. Salvador has to pay her bill in credit card in instalment basis. First payment is P15,000 at…

A: Compounding is a way to consider a money’s time value and find FV of present amount by using…

Q: Jessica borrows $1,000.00 from a credit card company at 25% annually for two years. Determine…

A: Loan amount = $1000 Annual interest = 25% Duration (n) = 2 years = 24 months Monthly payment = X

Q: 3. Jefrey Yang receives a bill of P30,500 dated January 13 with terms, 7 , 5/10 and n/30. What cash…

A: 2/10 net 30 means 2% discount will be there if payment is made with in 10 days and no discount after…

Q: Calvin Johnson has a $6,000 debt balance on his Visa card that charges 11.1 percent APR…

A: Data given: Debit balance on Visa card= $6000 APR (compounded monthly) = 11.1% i) Minimum monthly…

Q: Calvin Johnson has a $5,500 debt balance on his Visa card that charges 12.2 percent APR compounded…

A: Given that: Interest rate = 12.2% annually periodic payment (pmt)=$220 present value= $5500 future…

Q: As a buyer for the J&J company, you receive an invoice with terms 3/10, EOM, net 60. The invoice…

A: 1. 3/10 EOM means buyer can get the cash discount of 3% if he pays the amount within 10 days from…

Q: Please show the formula used. At age 30 you deposit 150 pesos at teh end of each month into SSS…

A: The interest earned at the end of the period can be calculated with the help of future value of…

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

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, finance and related others by exploring similar questions and additional content below.

Similar questions

Gear Up Co. pays 65% of its purchases in the month of purchase, 30% in the month after the purchase, and 5% in the second month following the purchase. What are the cash payments if it made the following purchases in 2018?
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?
Mystic Magic issued a $120,250 note on January 1, 2018 to a customer, Amy Arnold, in exchange for merchandise. Terms of the note are 9-month maturity date on October 1, 2018 at a 9.6% annual interest rate. Amy Arnold does not pay on her account and dishonors the note. On November 10, 2018, Mystic Magic decides to sell the dishonored note to a collection agency for 25% of its value. Record the journal entries for Mystic Magic for the following transactions. A. Initial sale on January 1, 2018 B. Dishonored note entry on October 1, 2018 C. Receivable sale on November 10, 2018
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.
On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan.
On January 1, 2019, Kunto, a cash basis taxpayer, pays 46,228 for a 24-month certificate. The certificate is priced to yield 4% (the effective interest rate) with interest compounded annually. No interest is paid until maturity, when Kunto receives 50,000. In your computations: a. Compute Kuntos gross income from the certificate for 2019. b. Compute Kuntos gross income from the certificate for 2020. Round any amounts to the nearest dollar.
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?
Can the 10,000 note be repaid on May 1? Explain.
3. Jefrey Yang receives a bill of P30,500 dated January 13 with terms, 7 , 5/10 and n/30. What cash discount will he receive if he pays a. Immediately? b. In 9 days? c. On the 25th day?
On May 12, Scott Rinse accepted an $4,500, 11%, 90-day note for a time extension of a bill for goods bought by Ron Prentice. On June 12, Scott discounted the note at Able Bank at 10%. What proceeds does Scott receive? Note: Use 360 days a year. Do not round intermediate calculations. Round your final answer to the nearest cent.
ron prentice bought goods from shelly katz. on may 8, shelly gave ron a time extension on his bill by accepting a $3,000, 8%, 180-day note. on august 16, shelly discounted the note at roseville bank at 9%. (use days in a year table.) what proceeds does shelly katz receive? (use 360 days a year. do not round intermediate calculations. round your answer to the nearest cent.): Proceeds received: ??
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”?