You purchased an appliance in a certain appliance center worth P35,000 using your credit card. The credit card company charges a monthly interest rate of 4% and a minimum payment of 5%. Assuming you only pay the minimum amount at the end of the month, what is the remaining balance after 6 payments?

You purchased an appliance in a certain appliance center worth P35,000 using your credit card. The credit card company charges a monthly interest rate of 4% and a minimum payment of 5%. Assuming you only pay the minimum amount at the end of the month, what is the remaining balance after 6 payments?

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: will be received and posted on the 10th of each month. No other charges will be made on the account.…

A: The computation of charges for purchases made with a credit card is the subject of the inquiry.…

Q: You have a balance of $400 on your credit card and make no more charges. Assume that the card…

A: Balance amount =$400 APR =18% Monthly rate = 0.18/12 =1.50% Time =6 months or 6 periods So, monthly…

Q: You owe $3,000 on your Credit card with 24% APR. What would be the minimum payment amount if your…

A: Borrowings are the liability of the company which is used to finance the requirement of the funds.…

Q: Assume that you start with a balance of $3900 on your credit card.During the first month you charge…

A: Here, Balance on Credit Card is $3900 APR is 29% Charges for first Month is $400 Charges for Second…

Q: You have credit card debt of $25,000 that has an APR (monthly compounding) of 18%. Each month you…

A: The Annual Percentage rate (APR) is the percentage rate that shows the interest rate calculates on…

Q: If you purchased shoes and bags from a department store and used your credit card, the purchase…

A: A finance charge is any fee representing the cost of credit or the cost of borrowing. It is interest…

Q: Assume that you have a balance of $2800 on your MasterCard and that you make no more charges. Assume…

A: Given information: Loan balance is $2,800 APR is 12% Minimum payment is 6% of balance

Q: Mary owed $800 on a credit card at the end of the March billing cycle. She made a purchase of $600…

A: In the previous balance method, the interest is calculated on the credit card balance outstanding at…

Q: If you are trying to build credit by using a credit card, each time you make a purchase with the…

A: Data given: 31 day billing cycle 10/1 Previous balance $ 1,177.00 10/3 Credit $ 66 cr…

Q: (a) During the September 20 through October 19 billing period, you pay the minimum required payment…

A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: Assume that you start with a balance of $4000 on your Visa credit card. During the first month, you…

A: Finance charges are levied by credit card companies if credit card holder fails to make payment on…

Q: You have a credit card with an APR of 22.8%. You begin with a balance of $1500, in response to which…

A: The interest on the credit card is charged monthly. The amount of payment reduces the outstanding…

Q: If you are trying to build credit by using a credit card, each time you make a purchase with the…

A: Here, APR is 9%

Q: You have credit card debt of $25,000 that has an APR (monthly compounding) of 17%. Each month you…

A: The computation of the additional borrowing as follows:

Q: On October 25, you plan to purchase a $1,500 computer by using one of your two credit cards. The…

A: Daily interest rate = Annual InterestNumber of Days in a Year=18%365=$0.0004931 Interest on Gold…

Q: You have a credit card with an APR of 20%. You begin with a balance of $600 in response to which you…

A: Given: APR = 20% Beginning balance = 600

Q: You have a credit card with a balance of $1,367.90 at 9.5% APR. You pay $400.00 each month on due…

A: APR(Annual percentage rate) refers to annual cost paid by the borrower for the loan taken which…

Q: On October 26, you plan to purchase a $1,500 computer by using one of your two credit cards. The…

A: Interest refers to the amount charged by bank in consideration of advancing loan to its borrowers.…

Q: A store will give you a 4.00% discount on the cost of your purchase if you pay cash today.…

A: Cash Discount is the discount provided by the sellers to encourage buyers to make payment of their…

Q: Ryan Gray, a student at State College, has a balance of $330 on his retail charge card; if the store…

A: Interest amount is calculated using the following formula:

Q: Assume you have a credit card that has a 24% APR and you have an average daily balance of $1,500.00.…

A: Credit card companies lend a certain amount to the borrower and charge interest over that amount…

Q: Paying off a Discover card. Assume that you have a balance of $3000 on your Discover credit card and…

A: Here, Balance of the card is $3000 APR is 21% Minimum Payment is 2%

Q: A machine shop has a credit card that offers rebates on purchases. A the end of Hay, the company had…

A: The minimum monthly payment is the smallest amount a client may pay on their revolving credit…

Q: Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days…

A: Periodic rate = 14%/12months =1.17%

Q: Use the unpaid balance method to calculate the finance charge on Joanna's credit account if last…

A: Computation:

Q: A credit card account’s due date is June 9, and the outstanding balance on that day is $460. On that…

A: The question is based on the concept for calculation of charges in credit card . Average daily…

Q: What is the approximate amount of each payments that Yumati will need to make?

A: Here is the calculation for the above question.

Q: You accumulated a balance of $2,300 on your credit card that carries an interest rate of 17%. You…

A: Given: Accumulated balance = $2300 Interest rate per year = 17% Mnthly interest rate = 17%/12…

Q: Randy Ice starts the month with a balance on his credit card of $1000. On the 10th day of the month,…

A: Finance charge is calculated by deducting the payment from the balance of the credit card and…

Q: On October 24, you plan to purchase a$1500 computer by using one of your two credit cards. The…

A: As per the information provided: Date Cash flow Net balance 1-Oct 0 0 24-Oct -$1500…

Q: Assume that you start with a balance of $3900 on your credit card. During the first month you charge…

A: Given, Starting balance is $3900. First month charge is $400. Second month charge is $650 Rate of…

Q: You had a $1,500 dollar balance last month after you paid on your credit card. You charged a Gazebo…

A: Balance at the end of last month was $1500 An amount of $1100 was paid on 10th of this month.…

Q: On October 25, you plan to purchase a $1,200 computer by using one of your two credit cards. The…

A: (A) For silver card: Interest on 10th November month=balance on 1st oct*18%=0*18%=0, remaining…

Q: You have credit card debt of $25,000 that has an APR (monthly compounding) of 18%. Each month you…

A: APR of old card = 18% APR of New Card = 9% Number of months in year = 12 (i) Monthly Interest rate…

Q: Use the unpaid balance method to find the finance charge on the credit card account. Last month's…

A: As per the Unpaid Balance Method Finance Charges computed on the unpaid balance of prior period. It…

Q: On October 24, you plan to purchase a $1,500 computer by using one of your two credit cards. The…

A: The question is based on the calculation of charges made for purchase by use of a credit card. The…

Q: Your credit card has a limit of $3,000. You have charged goods totaling that amount. Your yearly APR…

A: Finance charges of 1 month = Credit limit availed * APR % * 1 month / 12 months

Q: Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days…

A: Case : As the question provides that the payment receive and record would take time of 10 days .…

Q: If you are trying to build credit by using a credit card, each time you make a purchase with the…

A: Given: APR = 6% Formula for finance charges= (Previous Balance - Credit + Charges - Payment) x…

Q: A washer-dryer combination can be purchased from a department store by making monthly credit card…

A: Amortized Loan: Amortized loan is a type of loan in which the borrower would pay periodic payments…

Q: Assume that you have a balance of $3000 on your Discover credit card and that you make no more…

A: Formula:

Q: You have a credit card with an APR (Annual Percentage Rate) of 12%. You begin with a balance of…

A: APR = 12% Beginning Balance = $200 Payment = $75 1st month charge = $50 2nd month charge = $60

Q: You owe $3,000 on your credit card with a 24% APR. What would be the minimum payment amount if your…

A: APR= 24% Monthly Interest = 24% /2 Amount = $3000 minimum per month Payment = 3000*5%…

Q: Betty Thomas borrowed $6500 onher Visa card to install a hot tub with landscaping around it. The…

A: Loan Amount = $6,500 Interest Rate = 1.6%

Question

PLEASE TYPE IT AND NOT HANDWRITTEN

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 1Basic Information

VIEW

Step 2 Solution

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

American Signs allows customers to pay with their Jones credit card and cash. Jones charges American Signs a 3.5% service fee for each credit sale using its card. Credit sales for the month of June total $328,430, where 40% of those sales were made using the Jones credit card. Based on this information, what will be the total in Credit Card Expense at the end of June?
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.
A car dealership sells a car to a customer for $35,000. The customer makes a 10% down payment, and the dealership finances the remaining 90% in-house. How much will the car dealership record in Accounts Receivable for this customer? A. $31,500 B. $19,250 C. $8,750 D. $7,000
Homeland Plus specializes in home goods and accessories. In order for the company to expand its business, the company takes out a long-term loan in the amount of $650,000. Assume that any loans are created on January 1. The terms of the loan include a periodic payment plan, where interest payments are accumulated each year but are only computed against the outstanding principal balance during that current period. The annual interest rate is 8.5%. Each year on December 31, the company pays down the principal balance by $80,000. This payment is considered part of the outstanding principal balance when computing the interest accumulation that also occurs on December 31 of that year. A. Determine the outstanding principal balance on December 31 of the first year that is computed for interest. B. Compute the interest accrued on December 31 of the first year. C. Make a journal entry to record interest accumulated during the first year, but not paid as of December 31 of that first year.
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?
McMasters Inc. specializes in BBQ accessories. In order for the company to expand its business, they take out a long-term loan in the amount of $800,000. Assume that any loans are created on January 1. The terms of the loan include a periodic payment plan, where interest payments are accumulated each year but are only computed against the outstanding principal balance during that current period. The annual interest rate is 9%. Each year on December 31, the company pays down the principal balance by $50,000. This payment is considered part of the outstanding principal balance when computing the interest accumulation that also occurs on December 31 of that year. A. Determine the outstanding principal balance on December 31 of the first year that is computed for interest. B. Compute the interest accrued on December 31 of the first year. C. Make a journal entry to record interest accumulated during the first year, but not paid as of December 31 of that first year.
A customer was unable to pay the accounts receivable on time in the amount of $34,000. The customer was able to negotiate with the company and transferred the accounts receivable into a note that includes interest, along with an up-front cash payment of $6,000. The note maturity date is 24 months with a 15% annual interest rate. What is the entry to recognize this transfer?
You purchased an appliance in a certain appliance center worth P35,000 using your credit card. The credit card company charges a monthly interest rate of 4% and a minimum payment of 5%. Assuming you only pay the minimum amount at the end of the month, what is the remaining balance after 6 payments?
PLEASE TYPE IT AND NOT HANDWRITTEN If you purchased shoes and bags from a department store and used your credit card, the purchase amounted to P12,000, and you decided to pay it in 18 months at 21% APR, compute the finance charge.
On October 22, you plan to purchase a $3,000 computer by using one of your two credit cards. The Silver Card charges 18% interest and calculates interest based on the balance on the first day of the previous month. The Gold Card charges 18% interest and calculates interest based on the average daily balance. Both cards have a $0 balance as of October 1. The closing date is the end of the month for each card. Your plan is to make a $1,000 payment in November, make a $1,000 payment in December, and pay off the remaining balance in January. All your payments will be received and posted on the 10th of each month. No other charges will be made on the account. Based on this information, calculate the interest charged by each card for this purchase. Which card is the better deal and by how much?
Give typing answer with explanation and conclusion You have a balance of $9700 for your tuition on your American Express credit card. Assume that you take no more charges on the card. Also assume that American Express charges 13% APR and that each month you make only the minimum payment of 4% of the balance. What will the balance be after 32 months? At what balance do you begin making payments of $60.00 or less? How long will it take to get the balance below $50?
A machine shop has a credit card that offers rebates on purchases. At the end of May, the company had a credit card bill of $19,474.38. If the company must make a minimum payment that is the greater of $500 or 4.5% of the credit card bill, what is the minimum monthly payment for May? (Round your answer to the nearest cent.) $?