Answered: sub=26(Determine the promissory note to…

sub=26(Determine the promissory note to amortize (pay off) a $150,000 mortgage at 5.99% APR compounded monthly over a 15-year term

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 6MC: On July 1, a company sells 8-year $250,000 bonds with a stated interest rate of 6%. If interest...

See similar textbooks

Related questions

Q: "If the nominal rate is 12% compounded semi-annually, the annual percentage rate is higher than the ...

A: The annual percentage rate is is nominal rate of interest I.e. 12%

Q: The project returns 50% in present value for each current dollar invested The proiect's costs are le...

A: Profitability index is the ratio of the present value of the benefits to the amount of initial inves...

Q: Other things equal, which of the following will decrease the WACC of a firm that has both debt and e...

A: The Weighted Average Cost of Capital and Capital Structure both are important factors in an organiza...

Q: for Market Price per S

A: Step 1 The market price or market capitalization of a company is calculated using the market price p...

Q: tion above, us Figure 12.4 on page corresponding tax page 397 to determ owe the governmer 1. Who mus...

A: Because you have asked multiple questions, we will only solve the first question as per policy. Plea...

Q: Find the future worth factor of an annual payment for 15 years at 13 % compounded annually.

A: Time Period = 15 Years Interest Rate = 13%

Q: How much larger will the value of an RRSP be at the end of 20 years if the contributor makes month-e...

A: Future Value of Ordinary Annuity refers to the concept which determines the sum total of all the cas...

Q: A call option on a non-dividend-paying stock has a strike price of $30 and a time to maturity of six...

A: An option is a financial instrument that is based on the value of underlying securities such as stoc...

Q: May deposits PhP 20,000 into a fund at the beginning of nd of 15 years, she makes an additional depo...

A: The present value of the future payments to be received will give the the future value of payments r...

Q: If you negotiate a new-car deal for $22,995, including all taxes and registration, and you put 20% d...

A: The financed amount refers to the cash generated by raising a liability where borrower becomes liabl...

Q: If you take corporate taxes and the cost of financial distress are into consideration, the market va...

A: The cost of conducting business that a company in financial crisis faces, such as a greater cost of ...

Q: Discuss the impact risk exposures have on families and friends.

A: Risk exposure: While risk refers to the possibility that the actual outcome may be different from th...

Q: For each of the companies described here, would you expect it to have a low, medium, or high dividen...

A: A dividend is a distribution of a portion of a company's earnings to a group of shareholders designa...

Q: What is Chipotle’s TIE

A: TIE of a company means Times Interest ratio or interest cover ratio of a company. It evaluates a com...

Q: Suppose the interest rate is 7.7% APR with monthly compounding. What is the present value of an annu...

A: Interest rate = 7.7% Monthly interest rate = 7.7%/12 = 0.641666666666667% Three monthly payment = $...

Q: Determine the present value of the following cash flows; P4,000 at the end of 4th month and every mo...

A: Given information= P4000 at the end of 4th month and every month thereafter till the 12th Month Inte...

Q: 2021 MARKET DATA Market Price $193.42 Shares Outstanding (M) 13.7 Tax Rate 18.80% What is S...

A: Capital expenditure (or capex) is the amount spent in buying new plants, equipment and machinery.

Q: Assets (in KD) Liabilities (in KD) Cash 20000 Accounts payable 80000 Accounts receivable 100000 Accr...

Q: John Doe currently has $12,000 and decides to make a 4-year investment, which is compounded semiannu...

A: Concept. Formula of future value F = P ( 1+ i)t Where , F = future value P = principal amount i = i...

Q: QUESTION 5 (a) RM 200 is invested every month for 2 years 7 months at 10 % compounded monthly. What ...

A: Future value of annuity is referred as the value of group for the payments in recurrence at the part...

Q: 5. Suppose AW(MARR) = $5 for a single alternative. Is this investment economically justified? Justif...

A: Annual Worth: Annual worth is an alternative method for FW and PW Analysis. Almost all times; It w...

Q: Mohammed has an overdraft of £200 at the start of January. At the end of January he is in a net exp...

A: Closing balance: The amount in an account at the conclusion of a period of time, such as a month or ...

Q: Balance sheet Assets (in KD) Liabilities (in KD) Cash 53627 Accounts payable 80000 Accounts receivab...

A: Solution:- Current ratio measures the liquidity of the company ie. the ratio of current assets to cu...

Q: 11. An elective project is currently under review. The first alternative requires an initial investm...

A: A cost-benefit analysis is a systematic process that businesses use to determine which decisions to ...

Q: 8. (6) If RL equals 5%, what is the preferred investment using Roy's safety-first criterion for the ...

A: Roy's safety first criterion: Roy's safety first criterion sets a threshold limit based on an invest...

Q: A 5-year project will require an investment of $100 million. This comprises of plant and machinery ...

A: Cost of equity refers to the return that is required if an investment is made either by a company or...

Q: ABC has an authorized capital of P1,000, P100 par, 8% cumulative preference share and 100,000, P10 p...

A: Given: Cumulative preference shares 50000 Ordinary shares 90000 Additional paid in capital 90...

Q: Question: How many prospects do the crook need initially, so that on the 11th day one person remains...

A: Stock predictions are based on how the stock has behaved in the past and the current market conditio...

Q: Assume the current price of copper is $1675 per tonne, the term structure of interest rate is flat a...

A: Arbitrage: If the cost of entering into a strategy is lower than the proceeds from the strategy, a r...

Q: A fast food restaurant feels they could increase their profits by introducing ice cream. The equipme...

A: Given: Year Particulars Amount 0 Initial investment -$250,000 1 Cash inflows $125,000 2 Cas...

Q: equivalent annual salary 1

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any ...

Q: larger will the value of an RRSP

A: RRSP stands for Retirement saving plan refers to the financial plan which is used for saving and inv...

Q: 14. A man made ten annual end-of-year purchases of P1,000 common stock. At the end of 10th year he s...

A: Yield to maturity can be calculated by following function in excel =RATE (nper, pmt, pv, [fv], [typ...

Q: Choose from the two machines which is more economical: Machine B 14000 P2,000 Machine A First Cost P...

A: Taxes and Insurance = 3% Interest Rate = 16%

Q: Determine the principal remaining after 36 monthly payments have been made for a 5-year loan of P40,...

A: Loan (L) = P 40000 n = 5 years = 60 months Interest rate = 8% quarterly compounded Let r = Monthly i...

Q: r1=0.07, r2=0.065, r3=0.06, r4=0.05, r5=0.475, r6=0.04 Find current price P(t-0) with F=5000 with an...

A: We can find the annual Y rate by taking the average of all 6-year rates. We can apply the formula to...

Q: C) Present Worth Cost Method D) Equivalent Uniform Annual Cost Method

A: Out of all the available investment options a company will either choose the one that maximizes bene...

Q: TOPIC: ENGINEERING ECONOMICS "Compound Interest" SPECIFIC INSTRUCTION: Show a systematic solution an...

A: The money grow more with period of compounding because the effective rate of interest increases with...

Q: The XYX company has a bond an 8-year bond with a 6% coupon paid semi-annually 2. The XYX company has...

A: The bond price is equal to sum of the present value of all the future cash flows over the tenure of ...

Q: A stock has the following data: o Current cash flow per share: $ 12 o Growth rate for the next three...

A: Stock is one of the company’s securities which is issued to raise the funds. Stock provides funds fo...

Q: High-end airlines compete directly with other high-end airlines. When it comes to pricing, competito...

A: In a competitive environment, the companies will try to outdo each other on prices and services in o...

Q: ndholders. areholders. areholders and the federal government.

A: Interest tax sheild is the reduced cost of capital due to the advantages of tax deductions.

Q: Describe the services and characteristics that are of prime importance to you in a financial institu...

A: Financial institutions are the institutions in which the operations are all finance related. These i...

Q: A student decides to make annual payments of Php 1619 into a bank that has a nominal interest of 4% ...

A: Formula Future value = P*((1+i)n-1)/i Where P = Annual payment i.e. Php 1619 i = Annual interest rat...

Q: Calculate the amount of money Dylan had to deposit in an investment fund growing at an interest rate...

A: Interest rate = 2% Annuity amount = $11,000 Time period = 2 years

Q: What is the debt ratio at the optimal capital structure of XYZ Inc.?

A: Capital structure which maximizes the share price is the optimal one. Let D1 = Expected dividend EPS...

Q: Corporation. Cooperative. Partnership. Oropriotorchin

A: Introduction : In simple words, the given question relates to the multiple forms of business ownersh...

Q: 2

A: Step 1 The risk premium is closely linked to the risk abhorrence; The greater the abhorrence of the ...

Q: Find the simple interest of P210,000 for 3 years at 5 %.

A: Simple interest is a quick and easy way to calculate a loan's interest charge. The daily interest ra...

Q: Assets (in KD) Liabilities (in KD) Cash 263854 Accounts payable 80000 Accounts receivable 100000 Acc...

A: To Find: Quick ratio

Concept explainers

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.

Question

(please solve within 10. minutes)

sub=26(Determine the promissory note to
amortize (pay off) a $150,000 mortgage at
5.99% APR compounded monthly over a 15-year
term

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

Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual interest rate of 6%, and payable in four months. How much interest will Marathon Peanuts owe at the end of four months? A. $2,600 B. $7,800 C. $137,800 D. $132,600
Calculating interest and APR of installment loan. Assuming that interest is the only finance charge, how much interest would be paid on a 5,000 installment loan to be repaid in 36 monthly installments of 166.10? What is the APR on this loan?
A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an annual interest rate of 11%. If 6 months have passed since note establishment, what would be the recorded interest figure at that time? A. $7,150 B. $65,000 C. $14,300 D. $2,383
Sharapovich Inc. borrowed $50,000 from Kerber Bank and signed a 5-year note payable stating the interest rate was 5% compounded annually. Sharapovich Inc. will make payments of $11,548.74 at the end of each year. Prepare an amortization table showing the principal and interest in each payment.
Cash Flow Amounts R. Lee Rouse borrows 10,000 that is to be repaid in 24 equal monthly installments payable at the end of each subsequent month with interest at the rate of 1% per month. Required: Using the appropriate table, calculate the equal installments.
Use Future Value and Present Value Tables to Apply Compound Interest to Accounting Transactions Kristen Quinn makes equal deposits of $500 semiannually for 4 years. Required: What is the future value at 8%? (Note: Round answers to two decimal places.)
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?
Future Value Hugh Colson deposited 20,000 in a special savings account that provides for interest at the annual rate of 12% compounded semiannually if the deposit is maintained for 4 years. Required: Calculate the balance of the savings account at the end of the 4-year period.
Define each of the following loan terms, and explain how they are related to one another: the prime rate, the rate on commercial paper, the simple interest rate on a bank loan calling for interest to be paid monthly, and the rate on an installment loan based on add-on interest. If the stated rate on each of these loans was 5%, would they all have equal, effective annual rates? Explain.
On July 1, a company sells 8-year $250,000 bonds with a stated interest rate of 6%. If interest payments are paid annually, each interest payment will be ________. A. $120,000 B. $60,000 C. $7,500 D. $15,000
Everglades Consultants takes out a loan in the amount of $375,000 on April 1. The terms of the loan include a repayment of principal in eight, equal installments, paid annually from the April 1 date. The annual interest rate on the loan is 5%, recognized on December 31. (Round answers to the nearest cent, if needed.) A. Compute the interest recognized as of December 31 in year 1. B. Compute the principal due in year 1.