5 1. A man borrows money from a bank which uses a simple discount rate of 14%. He signs a promissory note promising topay P500 per month at the end of 4th, 6th , and 7th months, respectively. Determine the amount he received from thebank.2. Mr. W borrowed P2,000 from Mr. Y on June 1, 1928 and P500 on June 1, 1930. Mr. W paid P500 on June 1, 1931, P400on June 1, 1932, and P700 on June 1, 1933. If money is worth 5% compounded annually, what additional payment shouldMr. W pay on June 1, 1936 to discharge all remaining liability?3. The Philippine Society of Mechanical Engineers is planning to construct its own building. Two proposals are beingconsidered:a. The construction of the building now to cost P400,000.b. The construction of a smaller building now to cost P300,000 and at the end of 5 years, an extension to be addedto cost P200,000.Which proposal is more economical if interest is 20%, depreciation is disregarded and by how much?4. Juan de la Cruz borrowed P2,400 at 1% per month payable in 24 equal end-of-the-month payments. How much of theloan remains unpaid immediately after he has paid the 12th payment?5. Two years ago, the rental for the use of equipment and facilities was paid 5 years in advance, with the option to renewthe rent for another 5 years by payment of P15,000 annually at the start of each year for the rental period. Now,the lessor asks the lessee, if it could be possible to prepay the rental that will be paid annually in the renewed 5-year period. If the lessee agrees, what would be the fair payment to be made to the lessor. USE:i = 8%

“Since you have asked multiple questions, we will solve the one question for you. If you want any…

Answered: A man borrows money from a bank which…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter17: Accounting For Notes And Interest

Section: Chapter Questions

Problem 1CE

See similar textbooks

Similar questions

Nick borrowed $6000 for 24 months from his bank using an 11 and a 1/2 percent discount note. A. How much interest did Nick pay the bank for the use of the money? B. How much did he receive from the bank?
A man borrows money from a bank which uses a simple discount rate of 14%. He signs a promissory note promising to pay P500 per month at the end of the 4th, 6th and 7th months, respectively. Determine the amount he received from the bank.
On March 1, 1996 Mr. Almagro obtains a loan of P1500 from Mr. Abella and signs a note promising to pay the principal and accumulated simple interest at the rate of 5% at the end of 120days. On May 15, 1996, Mr. Abella discounts the note at the bank whose discount rate is 6%. What does he receive?
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”?
9. Liam borrowed $12,500 for 5 months from a bank using a 2% discount note. a) How much interest did Liam pay the bank for the use of its money? b) How much did he receive from the bank? c) What was the actual rate of interest he paid?
Will borrowed$1205 from his bank for 16 months using a 4.1%discount note. Determine how much interest will paid the bank for the use of its money and how much Willreceivedfrom the bank.
Mrs. Shimizu borrowed money from a bank. She received from the bank P1,342 and promised torepay P1,500 at the end of 10 months. Determine (a) simple interest rate (b) discount offered asBanker’s discount. Show your complete solution.
Assume that Louisa carried an average balance of $1,000 from her credit card purchases over the past year. The A.P.R. on her credit card for the past year was 19.99%. Approximately how much interest would Louisa have paid over the course of the year? She would have paid interest charges of $2,000. She would have paid interest charges of $20. The credit card company would have paid Louisa $20. She would have paid interest charges of $200.
Joshua borrowed $800 for one year and paid $40 in interest. The bank charged him a service charge of $7. If Joshua paid the $800 in 12 equal monthly payments, what is the APR?
June Peters deposits $6400 in a savings account at her bank. When she withdraws the money 8 months later, she receives a check for $6453.33. Assume simple interest and find the rate of interest paid by the bank.
John signed a 90-day note with a face value of $6,000 and a discount rate of 14.57%. How much did the John receive from the bank? (ordinary time)
a man borrows money from the bank but only received 86% of the amount requested. he signs a promissory note that he would pay P55,980 at the end of 7 years. how much money is requested from the bank if the simple interest rate is 9.766% a. 36,857.114 b. 38,662.539 c. 33,249.783 d. 30, 365.448

SEE MORE QUESTIONS

Recommended textbooks for you

College Accounting, Chapters 1-27

Accounting

ISBN:

9781337794756

Author:

HEINTZ, James A.

Publisher:

Cengage Learning,

College Accounting, Chapters 1-27

Accounting

ISBN:

9781337794756

Author:

HEINTZ, James A.

Publisher:

Cengage Learning,

SEE MORE TEXTBOOKS

A man borrows money from a bank which uses a simple discount rate of 14%. He signs a promissory note promising to pay P500 per month at the end of 4th, 6t , and 7th months, respectively. Determine the amount he received from the bank.