5:1 Answer B questions OUse PMT=1-P+Eihas a balance of $4900 and an annual interest rate of 19%. With no further purchases charged to the card and thebalance being paid off over two years, the monthly payment is $247, and the total interest paid is $1028. You can geta bank loan at 11.5% with a term of three years. Complete parts (a) and (b) below.to determine the regular payment amount, rounded to the nearest dollar. Your credit card- nta. How much will you pay each month? How does this compare with the credit-card payment each month? Selectthe correct choice below and fill in the answer boxes to complete your choice.(Do not round until the final answer. Then round to the nearest dollar as needed.)This is $...The monthly payments for the bank loan are approximately $credit-card payments.aThe monthly payments for the bank loan are approximately $ 162. This is $ 85 less than the monthlycredit-card payments.b. How much total interest will you pay? How does this compare with the total credit-card interest? Select thecorrect choice below and fill in the answer have to complete your choicmore than the monthlyH77°F OUse PMT=PAto determine the regular payment amount, rounded to the nearest dollar. Your credit card- nthas a balance of $4900 and an annual interest rate of 19%. With no further purchases charged to the card and thebalance being paid off over two years, the monthly payment is $247, and the total interest paid is $1028. You can geta bank loan at 11.5% with a term of three years. Complete parts (a) and (b) below.credit-card payments.b. How much total interest will you pay? How does this compare with the total credit-card interest? Select thecorrect choice below and fill in the answer boxes to complete your choice.(Use the answer from part a to find this answer. Roundthe nearest dollar as needed.)OA. The total interest paid over 3 years for the bank loan is approximately $total credit-card interest.OB. The total interest paid over 3 years for the bank loan is approximately $total credit-card interest.aThis is $This is $less than themore than the77°F

As per the given information: Loan amount (P)- $4900Interest rate (r) - 11.5%Payment frequency (n) -…

Answered: Use PMT= to determine the regular…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 12EA: Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank...

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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
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
Campus Flights takes out a bank loan in the amount of $200,500 on March 1. The terms of the loan include a repayment of principal in ten equal installments, paid annually from March 1. The annual interest rate on the loan is 8%, recognized on December 31. (Round answers to the nearest whole dollar if needed.) A. Compute the interest recognized as of December 31 in year 1 rounded to the whole dollar. B. Compute the principal due in year 1.
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.
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?
A ski company takes out a $400,000 loan from a bank. The bank requires eight equal repayments of the loan principal, paid annually. Assume no interest is paid or accumulated on the loan until the final repayment. How much of the loan principal is considered a current portion of a noncurrent note payable in year 3? A. $50,000 B. $150,000 C. $100,000 D. $250,000
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?
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.
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?
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.
Cost of Bank Loan On March 1, Minnerly Motors obtains a business loan from a local bank. The loan is a 25,000 interest-only loan with a nominal rate of 11%. Interest is calculated on a simple interest basis with a 365-day year. What is Minnerlys interest charge for the first month (assuming 31 days in the month)?
Sunlight Growers borrows $250,000 from a bank at a 4% annual interest rate. The loan is due in three months. At the end of the three months, the company pays the amount due in full. How much did the company remit to the bank? A. $250,000 B. $10,000 C. $252,500 D. $2,500

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