APPLE, INC.www.apple.comFacts:• 1976: Founded• 1984: Introduced Macintosh• 2001: Introduced iPod• 2003: Opened iTunes Music Store• 2007: Introduced iPhone• 2010: Introduced iPad• 2015: Introduced Apple WatchJessica Hernandez wanted to open a retail outlet in a mall where she could sell iPhones. ButApple would not allow it, so she focused on building web pages for businesses. As her businessstarted to grow, she realized she would soon need to hire one or two people and that she neededto buy some computers. In other words she could not grow her business without borrowing.1. Hernandez decided to borrow $85,000 for 10 months. She found that banks would lend toher only if she had a cosigner on the note-fortunately her uncle was a successful businessowner and he agreed to cosign. Bank One offered the funds at a 10% simple discount. Findthe maturity value of the loan and the discount.1.2. Once Hernandez's uncle agreed to cosign on a loan, Union Bank offered to lend Hernandez$85,000 at 10.5% simple interest. Find the interest and maturity value.E 回2. 1. Hernandez decided to borrow $85,000 for 10 months. She found that banks would lend toher only if she had a cosigner on the note-fortunately her uncle was a successful businessowner and he agreed to cosign. Bank One offered the funds at a 10% simple discount. Findthe maturity value of the loan and the discount.1.2. Once Hernandez's uncle agreed to cosign on a loan, Union Bank offered to lend Hernandez$85,000 at 10.5% simple interest. Find the interest and maturity value.2.3. Find the loan with the lower interest and find the difference in interest.3.4. Find the effective interest rate for both loans to the nearest hundredth of a percent.BankInterestLoan Amount Effective RateBank One$7727.27$85,000Union Bank $7437.50$85,0004.

1) Loan from Bank one Borrow Amount = $85,000 Interest 10% Simple discount Time = 10 months Interest…

1. Hernandez decided to borrow $85,000 for 10 months. She found that banks would lend to her only if she had a cosigner on the note-fortunately her uncle was a successful business owner and he agreed to cosign. Bank One offered the funds at a 10% simple discount. Find the maturity value of the loan and the discount. 2. Once Hernandez's uncle agreed to cosign on a loan, Union Bank offered to lend Hernandez $85,000 at 10.5% simple interest. Find the interest and maturity value. 3. Find the loan with the lower interest and find the difference in interest. 4. Find the effective interest rate for both loans to the nearest hundredth of a percent. Bank Interest Loan Amount Effective Rate Bank One $7727.27 $85,000 Union Bank $7437.50 $85,000

1. Hernandez decided to borrow $85,000 for 10 months. She found that banks would lend to her only if she had a cosigner on the note-fortunately her uncle was a successful business owner and he agreed to cosign. Bank One offered the funds at a 10% simple discount. Find the maturity value of the loan and the discount. 2. Once Hernandez's uncle agreed to cosign on a loan, Union Bank offered to lend Hernandez $85,000 at 10.5% simple interest. Find the interest and maturity value. 3. Find the loan with the lower interest and find the difference in interest. 4. Find the effective interest rate for both loans to the nearest hundredth of a percent. Bank Interest Loan Amount Effective Rate Bank One $7727.27 $85,000 Union Bank $7437.50 $85,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

APPLE, INC.
www.apple.com
Facts:
• 1976: Founded
• 1984: Introduced Macintosh
• 2001: Introduced iPod
• 2003: Opened iTunes Music Store
• 2007: Introduced iPhone
• 2010: Introduced iPad
• 2015: Introduced Apple Watch
Jessica Hernandez wanted to open a retail outlet in a mall where she could sell iPhones. But
Apple would not allow it, so she focused on building web pages for businesses. As her business
started to grow, she realized she would soon need to hire one or two people and that she needed
to buy some computers. In other words she could not grow her business without borrowing.
1. Hernandez decided to borrow $85,000 for 10 months. She found that banks would lend to
her only if she had a cosigner on the note-fortunately her uncle was a successful business
owner and he agreed to cosign. Bank One offered the funds at a 10% simple discount. Find
the maturity value of the loan and the discount.
1.
2. Once Hernandez's uncle agreed to cosign on a loan, Union Bank offered to lend Hernandez
$85,000 at 10.5% simple interest. Find the interest and maturity value.
E 回
2.

1. Hernandez decided to borrow $85,000 for 10 months. She found that banks would lend to
her only if she had a cosigner on the note-fortunately her uncle was a successful business
owner and he agreed to cosign. Bank One offered the funds at a 10% simple discount. Find
the maturity value of the loan and the discount.
1.
2. Once Hernandez's uncle agreed to cosign on a loan, Union Bank offered to lend Hernandez
$85,000 at 10.5% simple interest. Find the interest and maturity value.
2.
3. Find the loan with the lower interest and find the difference in interest.
3.
4. Find the effective interest rate for both loans to the nearest hundredth of a percent.
Bank
Interest
Loan Amount Effective Rate
Bank One
$7727.27
$85,000
Union Bank $7437.50
$85,000
4.

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