A company purchases machinery for kshs 800,000 by making a down payment of Shs 150,000 and the remainder to be paid in equal instalments of kshs 150,000 for six years. Calculate the effective rate of interest
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A company purchases machinery for kshs 800,000 by making a down payment of Shs 150,000 and the remainder to be paid in equal instalments of kshs 150,000 for six years. Calculate the effective rate of interest
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- 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.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.Electro Corporation bought a new machine and agreed to pay for it in equal annual installments of 5,000 at the end of each of the next 5 years. Assume a prevailing interest rate of 15%. The present value of an ordinary annuity of 1 at 15% for 5 periods is 3.35. The future amount of an ordinary annuity of 1 at 15% for 5 periods is 6.74. The present value of 1 at 15% for 5 periods is 0.5. How much should Electro record as the cost of the machine? a. 12,500 b. 16,750 c. 25,000 d. 33,700
- Next Level Potter wishes to deposit a sum that at 12% interest, compounded semiannually, will permit 2 withdrawals: 40,000 at the end of 4 years and 50,000 at the end of 10 years. Analyze the problem to determine the required deposit, stating the procedure to follow and the tables to use in developing the solution.Using the information provided, what transaction represents the best application of the present value of an annuity due of $1? A. Falcon Products leases an office building for 8 years with annual lease payments of $100,000 to be made at the beginning of each year. B. Compass, Inc., signs a note of $32,000, which requires the company to pay back the principal plus interest in four years. C. Bahwat Company plans to deposit a lump sum of $100.000 for the construction of a solar farm In 4 years. D. NYC Industries leases a car for 4 yearly annual lease payments of $12,000, where payments are made at the end of each year.Pickles R Us is a pickle farm located in the Northeast. The following transactions take place: A. On November 6, Pickles borrows $820,000 from a bank to cover the initial cost of expansion. Terms of the loan are payment due in six months from November 6, and annual interest rate of 3%. B. On December 12, Pickles borrows an additional $200,000 with payment due in three months from December 12, and an annual interest rate of 10%. C. Pickles pays its accounts in full on March 12, for the December 12 loan, and on May 6 for the November 6 loan. Record the journal entries to recognize the initial borrowings, and the two payments for Pickles.
- On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10% interest rate. Each annual payment is in the amount of $39,569 and payment is due each Dec. 31. What is the journal entry on Jan. 1 to record the cash received and on Dec. 31 to record the annual payment? (You will need to prepare the first row in the amortization table to determine the amounts.)A factory operator bought a Diesel generator set for P1,000.000.00 and agreed to pay the supplier for a uniform amount at the end of each year for 5 years at 8% interest compounded annually, so that on the final final the debt will be fully paid. Compute for the annual payment.Kirk Company purchased equipment by making a down payment of P400, 000 and issuing a note payable for P1, 800,000. A payment of P600, 000 is to be made at the end each year for three years. Theapplicable rate of interest is 8%. The present value of an ordinary annuity of 1 for three years at 8% is2.58, and the present value for the future amount of a single sum for three years at 8% is .735. Shippingcharges for the equipment of P200, 000 and installation charges of P350, 000 were incurred. What is thecapitalized cost of the equipment?
- Towline Corporation borrowed S75,000.00 at 11% compounded monthly for 10 years to buy a warehouse. Equal payments are made at the end of every month. (a) Determine the size of the monthly payments (b) Compute the interest included in payment 37. (c) Determine the principal repaid in payment period 7. (d) Construct a partial amortization schedule showing details of the first three payments, the last three payments, and totals (a) The size of the monthly payment is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)Determine the amount of the periodic payments needed To pay off the following purchases. Payments are made at the end of the period. Purchase of an equipment for P1,205. Monthly payments are to made for 1 year with interest at 24% per annum, compounded monthly. Purchase of a machine for P26,565. Quarterly payments are to be made for 4 years with interest at 8% per annum, compounded quarterly. Purchase of equipment for P65,500. Semi-annual payments are to be made for 10 years with interest at 10% per annum, compounded semi-annually.1) A certain property was offered on an instalment basis wherein the buyer needs to pay 15% of the cash price as down payment and remaining balance be paid by a beginning of a quarter payments for a period of 5 years. First quarterly payment amounts to P 175,000 and happens six months after purchased. Quarterly payments increases an amount of P1, 200 every quarter thereof until the last payment with an interest rate of 8% effective. a) What was the cash price of the said property? b) What equivalent equal-end of a monthly payments would the remaining balance be for just a period of four years, assuming the first monthly payment happens after a year of purchased? c) Find the sum of all of the payments.
