Akbar Associates issued 120-day note for $50,000 to a creditor on a account. The notewas discounted at 6%. Assuming a 360-day year:a. What cash proceeds would Akbar receive from the note?b. How much would Akbar repay the creditor at the note's maturity? =

Cash Proceeds from Notes Receivable = Present Value of Notes

Answered: Akbar Associates issued 120-day note…

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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Mark purchased a 90-day interest-bearing note at 4.80% p.a. that has a face value of $5,000.00. a. If she holds the note for the full 90 days, calculate the maturity value of the note. Round to the nearest cent b. If the note is discounted 42 days from maturity at a rate of 6.20% p.a., calculate her proceeds. Round to the nearest cent
Arvan Patel is a customer of Bank’s Hardware Store. For Mr. Patel’s latest purchase on January 1, 2018, Bank’s Hardware issues a note with a principal amount of $459,505, 14% annual interest rate, and a 24-month maturity date on December 31, 2019. How much cash was received when the note was collected? Round to the nearest whole dollar, no decimal places.
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Akbar Associates issued 120-day note for $50,000 to a creditor on a account. The note was discounted at 6%. Assuming a 360-day year: a. What cash proceeds would Akbar receive from the note? b. How much would Akbar repay the creditor at the note's maturity?