Three equal payments were made one, two, and three years after the date on which a $11,350 loan was granted at 10.5% compounded monthly. If the balance immediately after the third payment was $5,461.94, what was the amount of each payment?

Three equal payments were made one, two, and three years after the date on which a $11,350 loan was granted at 10.5% compounded monthly. If the balance immediately after the third payment was $5,461.94, what was the amount of each payment?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 1PB: Sub-Cinema Inc. borrowed $10,000 on Jan. 1 and will repay the loan with 12 equal payments made at...

See similar textbooks

Related questions

Q: Colter Steel has $5,000,000 in assets. Temporary current assets $ 2,000,000 Permanent current…

A: ParticularAmountTemporary Current Assets $2,000,000.00Permanent Current Assets $1,550,000.00Fixed…

Q: What dangers are there in misrepresenting the financial performance of your company?

A: The objective of the question is to understand the potential risks and dangers associated with…

Q: Maddie Marlow and Jonah Font have an adjusted gross income of $174,200. They are looking for a new…

A: The front-end ratio refers to the measure of the ability of the borrower to cover housing expenses.…

Q: An annuity pays $2000 weekly for 5 years and then $4400 weekly for the next 7 years. Determine the…

A: An annuity is a series of periodic payments paid/received in exchange for a lump sum payment. It is…

Q: You have just received notification that you have won the $1 million first prize in the Centennial…

A: FV= $1,000,000r=7.25%n= 80 yearsPV=?

Q: On March 31, 2024, Chow Brothers, Incorporated, bought 6% of KT Manufacturing's capital stock for…

A: The objective of the question is to prepare the journal entries for the investment made by Chow…

Q: Given Analysis of unlevered equity beta with risky debt beta = .30 Firm1 (F1) Firm2 (F2) Firm3 (F3)…

A: Unlevered Beta: Also known as asset beta or equity beta, unlevered beta measures the risk of an…

Q: Brewster's is considering a project with a 5-year life and an initial cost of $120,000. The discount…

A: > We create the cash flow table in Excel writing down the values for each year and cash flows for…

Q: An investment promises to pay you $400 per year starting in 5 years. The cash flow from the…

A: The PV of an investment refers to the combined worth of the investment's cash flows after they have…

Q: A principal of $12, 000 is 3/5th itself invested at \times % interest rate for 5 years. If the same…

A: Let interest rate be x.We, have Principal (P) = $12,000Interest = P × 3/5 = $12,000 × 3/5 =…

Q: There is a --- impact of earnings on stock prices O a. Deductive O b. Positive O c. Normative O d.…

A: Earnings, also known as net income or profit, represent the amount of money a company has left over…

Q: Consider the following investment: A portfolio that pays a 30% rate of return with a probability of…

A: Variables in the question: Probability Rate of Return60%30%40%15%Investment in…

Q: Based on economists' forecasts and analysis, 1-year Treasury bill rates and liquidity premiums for…

A: Here, R10.35%E 2R11.50%L20.04%E 3R11.60%L30.08%E 4R11.90%L40.10%

Q: You are considering an investment in a mutual fund with a 3% front-end load and an expense ratio of…

A: Front end load = 3%Expense ratio = 0.6%CD interest = 5%To find: The return on a mutual fund that…

Q: In saving for a future major purchace, Oksana has been making uniform deposits of $5,000 per year in…

A: Future Value = PV*(1+r)^twhere, 'r' represents the interest rate't' is time.

Q: What is the monthly payment amount on a $100,000 home loan if the rate is 6.0% APR, and the loan is…

A: Present Value of loan (PV) = $100,000Annual Rate = 6%Monthly rate (r) = 6% / 12 = 0.5% or…

Q: dentify which model Skysong might use to estimate the discounted fair value under each scenario, and…

A: The discounted cash flow model calculates an investment's intrinsic value using the projection of…

Q: Natasha, age 62, purchases an annuity for $43,200. Natasha will receive $400 per month or the rest…

A: To determine the exclusion amount from income at age 65, you use the exclusion ratio. The exclusion…

Q: Consider the three stocks in the following table. Pt represents price at time splits two-for-one in…

A: Rate of return refers to the return earned on the investment made during the life of the project…

Q: You have decided to buy a perpetual bond. The bond makes one payment at the end of every year…

A: Perpetual bonds do not have a principal payback requirement, in contrast to ordinary bonds, which…

Q: which of the following statements regarding correlated risk is correct? Natural disasters like…

A: The correct statement is: "Stock prices tend to be positively correlated to marketwide economic…

Q: Jackson Corporation has a profit margin of 11 percent, total asset turnover of 1.09, and ROE of…

A: Profit margin = 11%Total asset turnover = 1.09Return on Equity (ROE) = 14.37%

Q: Manya and Sarah are both starting out in their careers. They choose two different paths to saving in…

A: Manya: Monthly deposit = $500 from age 23 to 67. Sarah: Monthly deposit = $1000 from age 45 to…

Q: "Finance3000" is a young start-up company. It will not pay any dividends on its stock over the next…

A: Current price of stock is the price which can be paid for purchase of the stock. It is also called…

Q: Tsai Enterprises has a bond outstanding with 25 years to maturity, a 6% coupon paid semiannually,…

A: Par value = $1000Coupon rate = 6%Years to maturity = 25 yearsNominal YTM = 5%Years to call = 5…

Q: 1. What is the Payback Period for this project? Judson Corp. is considering an investment that will…

A: Payback period (PBP) refers to the period or duration within which the company is able to recover…

Q: Paladin Furnishings generated $4 million in sales during 2021, and its year-end total assets were…

A: The self-supporting growth rate (SSGR) represents the highest possible growth rate a company can…

Q: 6 8 49 | (22) 5:01 1 A 25-year, $1,000 par value bond has an 8.5% annual payment coupon. The bond…

A: The objective of this question is to find the price of the bond 6 years from now, given the current…

Q: (1 + rnominal) = (1 + rreal) (1 + inflation rate). true or false

A: The question is asking to verify the validity of the formula that relates nominal interest rate,…

Q: E2.8 (LO 2) (Calculate ratios and Saputo Inc. for the year ended March 31 (in millions, except share…

A: Computation of EPSBasic Earnings per share = Income Available to common shareholders / Weighted…

Q: 7. You deposit 2,000 to an account that Carns a nominal 6% interest rate convertible quarterly for…

A: Future value is that amount which will be require to paid at some specified period of time. It…

Q: QUESTION 2 The following table contains yearly rate of returns on Pepsi and Sprite from 2020 to…

A: The solution requires understanding of the portfolio theory. RRC stands for return per unit of risk…

Q: Dome Metals has credit sales of $468,000 yearly with credit terms of net 60 days, which is also the…

A: Firm often make strategies to collect account receivables outstanding balance at an early point of…

Q: How much must she invest today to achieve this goal?

A: Present value illustrates the current value of a sum of money that will be received or paid in the…

Q: An investor buys a CME Sterling Currency futures, (with face value of £62,500) at 1.35 when the spot…

A: Currency futures are financial contracts that obligate the buyer to purchase or the seller to sell a…

Q: A security promises to pay you $40 every six months for 10 years and at the end of year 10, it will…

A: Semi-annual cash flow = $40Number of payments = n = 10*2= 20Final cash flow = FV = $ 1000Value of…

Q: According to the quantity theory of money, if the longminusrun economic growth rate is 3.6%, by…

A: Economic growth rate = 3.6%Inflation rate = 3%The Quantity Theory of Money is an economic theory…

Q: A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a…

A: Expected return of Stock fund19%Expected return of the bond fund12%Risk-free rate9%Standard…

Q: The following are the cash flows of two projects: Project Project A Year 0 1 2 3 4 $(370) 200 200…

A: Profitability index (PI) is an important capital budgeting tool. We use this tool to determine if a…

Q: Assume that a bond will make payments every six months as shown on the following tim 0 1 2 21 Period…

A: Bond are debt instruments issued by a company. They usually pay fixed coupon rates through the life…

Q: Cash Flow (A) -$41,300 19,100 17,800 15,200 8,400 What is the IRR for project A? Year 0 1 234 Cash…

A: IRR is also known as Internal rate of Return. It is a capital budgeting technique which helps in…

Q: Bond Jis a 3% coupon bond. Bond K is a 9% coupon bond. Both bonds have 15 years to maturity, make…

A: Bond price refers to the market value or cost of a bond. It is determined by several factors…

Q: Phoebe realizes that she has charged too much on her credit card and has racked up $6,600 in debt.…

A: Loan=6600Monthly PMT=200Interest rate=18%Monthly rate=1.5%

Q: On June 30, 2024, the Stone Company purchased equipment from Paper Corporation. Stone agreed to pay…

A: Down payment=19000Annual cash outflows=7000Number of payments= 5Rate of interest = 12%

Q: What is the present value of $7,280 payable at the end of 9 years? Use a nominal rate (monthly…

A: Present value is a financial concept used to measure the present value of money in the future and to…

Q: A producer of felt-tip pens has received a forecast of demand of 31,000 pens for the coming month…

A: Break-even units sold refers to the number of units that a company needs to sell in order to cover…

Q: If a bank has a positive repricing gap (RSAs > RSLs), then: Does this bank have reinvestment or…

A: The problem case focuses on identifying the impact of the positive repricing gap on the risk and…

Q: A small company heats its building using a gas furnace. It expects to spend $8,800 on natural gas…

A: Present Value or Present Worth is the current value of the future cash flow. It can be determined by…

Q: You have been managing a $5 million portfolio that has a beta of 1.35 and a required rate of return…

A: The objective of this question is to calculate the required return on a portfolio after investing…

Q: Derek currently has S12, 511.00 in an account that pays 6.00%. He will withdraw S5, 050.00 every…

A: Future value (FV) is a financial concept that projects the anticipated value of an investment or…

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: Introduction

VIEW

Step 2: Calculation of equal payment

VIEW

Solution

VIEW

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

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
Halep Inc. borrowed $30,000 from Davis Bank and signed a 4-year note payable stating the interest rate was 4% compounded annually. Halep Inc. will make payments of $8,264.70 at the end of each year. Prepare an amortization table showing the principal and interest in each payment.
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?
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.
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?
Lime Co. incurs a $4,000 note with equal principal installment payments due for the next eight years. What is the amount of the current portion of the noncurrent note payable due in the second year? A. $800 B. $1,000 C. $500 D. nothing, since this is a noncurrent note payable
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.
An individual borrows $4,500 from the bank to be repaid in three equal annual installments, with the first installment to be paid one year after the loan amount is received. If interest on the loan is charged at a rate of 9 per cent per annum compounded annually, to the nearest dollar the annual installment is a. $1,259 b. $1,373 c. $1,778 d. $1,631
A loan of £ 2,120,000 is repayable by equal quarterly payments for 15 years. The effective rate of interest is 6% pa. iv. What is the total interest paid after the 25th payment?v. What is the amount of capital portion in the 54th payment?
A loan of $3137 borrowed today is to be repaid in three equal installments due in one-and-a-half years, three-and-a-half years, and five-and-a-half years, respectively. What is the size of the equal installments if money is worth 9.2% compounded quarterly?
A sum of $80,000 is to be repaid over a 10-year period through equal installments made at the end of each year. If an interestrate of 12%/year is charged on the unpaid balance and interest calculations are made at the end of each year, determine thesize of each installment so that the loan (principal plus interest charges) is amortized at the end of 10 years.
A six-month bank loan in the amount of $12,000 had been obtained on September 1. Interest is to be computed at an annual rate of 8.5 percent and is payable when the loan becomes due. What is the amount of interest expense recognized for the entire current year on the $12,000 bank loan obtained September 1? Could you explain more details about this question, thank you.