Kindly help me with accounting questions ABC Bank accepts a promissory note for $10,000 from a customer onMarch 1, to be repaid in 6 months plus 8% interest. What is thematurity value of the note?a. $10,400b. $10,500c. $10,600d. $10,800

Step 1: Definition of Maturity ValueMaturity value refers to the total amount that must be repaid at…

Answered: ABC Bank accepts a promissory note for…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 21MC: A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an...

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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
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?
A company collects an honored note with a maturity date of 24 months from establishment, a 10% interest rate, and an initial loan amount of $30,000. Which accounts are used to record collection of the honored note at maturity date? A. Interest Revenue, Interest Expense, Cash B. Interest Receivable, Cash, Notes Receivable C. Interest Revenue, Interest Receivable, Cash, Notes Receivable D. Notes Receivable, Interest Revenue, Cash, Interest Expense
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What is maturity value of the note ?
Mobile Co. issued a $43,384, 60-day, discounted note to Guarantee Bank. The discount rate is 11%. At maturity, assuming a 360-day year, the borrower will pay: Select the correct answer. A. $43,384 B. $44,179 C. $38,612 D. $42,589
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A bank customer borrows X at an annual effective rate of 12.5% and makes level payments at the end of each year for n years. (i) The interest portion of the final payment is 153.86. (ii) The total principal repaid as of time (n − 1) is 6009.12. (iii) The principal repaid in the first payment is Y. Calculate Y. OA. 500 OB. 470 O C. 480 O D. 490 OE. 510
1.What is the effective interest rate of a simple discount note for $4,500 at a bank discount rate of 14% for 24 months? (Round to the nearest tenth percent.) A. 14.0% B. 19.4% C. 28.0% D. 38.9% 2.Use the ordinary interest method to find the rate of interest that Make Over Picture Photo pays on a loan of $8,000 for 265 days, if the amount of interest is $510.00. (Round your answer to the nearest tenth percent.) A. 7.5% B. 8.4% C. 8.5% D. 8.7%
Assuming a 360-day year, the interest charged by the bank, at the rate of 6%, on a 90-day, discounted note payable of $100,000 is O $3,000 A Ob. $6,000 Oc. $1,500 Od $500
I7 The bank is offering to sell 6-month certificates of deposit for $9800. At the end of 6 months, the bank will pay $10,000 to the certificate owner. Compute the nominal annual interest rate can you explain how we get the value m=2 in the nominal annual interest rate i=r/m

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ABC Bank accepts a promissory note for $10,000 from a customer on March 1, to be repaid in 6 months plus 8% interest. What is the maturity value of the note? a. $10,400 b. $10,500 c. $10,600 d. $10,800