An account was opened on January 1, 1999 with a deposit of $12,000. Additional deposits of $100 each were made to the account on the last day of each month for 5 years, with the first of those deposits occurring on January 31, 1999. Withdrawals from the fund of $1000 each on the first day of each quarter are scheduled to start on January 1, 2006. No other deposits or withdrawals are made. The interest rate is at a nominal annual rate of 8% compounded monthly. Find the balance in the fund on December 31, 2010.

Q: Provide journal entry and calculation. Amount of the Note $14000. The note payable is due in 5 years…

A: The objective of the question is to calculate the interest expense on the note payable and provide…

Q: On January 1, 2023, Martineau Corp. issued a 5-year, 4% installment note payable for $129,000 to…

A: Notes are also known as promissory notes which are a sort of debt instrument stating a promise to…

Q: How much money can be withdrawn at the end of 15 years if: a. $2,000 is deposited at the end of each…

A: The future value of the deposit is the value of the current deposits on a future date based on the…

Q: $6000 is deposited into an account earning 8% annual effective interest on December 31, 1984.…

A: An annuity is a financial product that pays out a fixed stream of payments to an individual, and…

Q: On 1/1/X1, Caldwell Corp. borrowed $450,000 by agreeing to a 9%, 9-year installment note with the…

A: Note means an instrument acknowledging as debt due from one party to another party. Interest bearing…

Q: The trustees of a college have accepted a gift of ​$100000​, but are required to deposit it in an…

A: The time value of money refers to the concept that a dollar today is more than a dollar in the…

Q: An annual deposits of A1=$1,500 in a saving account is made for 6 years starting year 1. In year 9,…

A: Given: A1 = $1500 n1 = 6 years In year 9 - OTD - $3500 In year 11 - OTW - $2500 From year 12: A2 = ?…

Q: Question: What was the dollar amount of interest income from T-bills as of April 30, 2021?…

A: Treasury Bills (T-B ills) are short-term debt securities issued by the U.S. Department of the…

Q: A depositor opens a new savings account with 8,000 at 8% compounded semiannually. At the beginning…

A: The concept of time value of money will be applied here. We have to find the amount at the end of…

Q: On January 1, 2021, Monster Corporation borrowed $9 million from a local bank to construct a new…

A: Amortization schedule: It can be defined as a table that shows the expense of interest, repayment of…

Q: 6667.63 is deposited in a bank that pays 18% annual intere compounded monthly. At the end of the…

A: Here the FV at the end of last withdrawal is 0.

Q: Assuming a 360-day year, the interest charged by the bank, at the rate of 12%, on a 90-day,…

A: Interest charged = Notes Payable x Interest rate x 90/360

Q: A woman deposited $ 10,000 into her bank account. The money remained in the account for 10 years.…

A: Compound interest is referred as the interest which is calculated on principal amount which involves…

Q: Julie deposited 10,000 in each of Bank 1 and Bank 2. Bank 1 credits simple interest at an annual…

A: Here, Bank 1: Deposit amount (PV) = 10,000 Interest rate for first 5 years = 10% Interest rate for…

Q: Dirk Ward borrowed $13 June 8, $200 on Septer November 1? The accrued interest or (Round the final…

A: Accrued interest refers to the amount of interest that is being charged on the borrowed amount after…

Q: An engineer deposits $1,000 in a savings account. Four years after the deposit, half of the account…

A: Future value of Annuity: It represents the future worth of the investment annuity cash flows.…

Q: On November 1, 2024, Quantum Technology, a geothermal energy supplier, borrowed $29 million cash to…

A: Journal entry records the accounting transactions of a business in a journal book. All the business…

Q: ted 16,8000 in a new savings account at 7% interest compounded seminannually. At the beginning of…

A: Amount in the saving account increases with time because with time interest goes on increasing.

Q: On April 2, 2020, shortly after the $7.5 million deposit outflow, Key Bank had borrowed the needed…

A: Net interest margin in simple words refers to interest earned by the bank on loan given excluding…

Q: An seven-year promissory note for $31 000 dated May 2, 2002, bearing interest at 8% compounded…

A: A promissory note is a financial instrument that contains a written promise by one party (the note's…

Q: On April 1, 1998, John opened a savings account with a nominal interest rate of 3.4% payable monthly…

A: Quaterly deposit in investment fund is $400 Interest rate of quaterly fund is 4.6% payable quaterly…

Q: An amount of money was deposited in the leader's savings fund: 8 annually, n amount of (8%)…

A: Given, Interest rate is 8% per annum compounded for every six months.  It means, for example,…

Q: A regular deposit of $120 is made at the beginning of each year for 20 years. Simple interest is…

A: Simple interest is the interest paid or computed only on the principal amount of money. It odes not…

Q: 3-43. An annuity fund is to be created to provide $6,000 at the end of each quarter year from ages…

A: The concept of time value of money will be used here. As per the concept of time value of money any…

Q: ▪mputing Annuity Amounts to a Debt Re nd n January 1, Chang Inc. establishes a bor nd (a bond…

A: Future of the annuity is required to calculate the sinking fund amount and sinking fund is the…

Q: A 9-year promissory note for $5256 dated today bearing interest at 3% compounded quarterly is…

A: Given, Promissory note of 9 years = $5256 Interest = 3% (compounded quarterly 4 years)  Date of…

Q: A trust fund is to be formed by depositing #4766 twice a year for 7 years in a bank that promises to…

A: Future Value of Ordinary Annuity refers to the concept which gives out the compounded or future…

Q: If the interest is deposited into a non interest bearing account B, what is the balance in account B…

A: The first investment is effectively a payout annuity where the interest amount is withdrawn each…

Q: $600.00 was invested in a bank for 5 years. When the deposit was made, the bank was paying the 14%…

A: Invested amount (P) = $ 600 Interest rate for first 3.5 years = 14% Quarterly interest rate (r) =…

Q: period. If interest is 8% compounded semiannually, what is the required semiannual to be made?

A: A stream of equal cash flows paid or received periodically is termed as annuity. Annuity is either…

Q: Five years ago, $12, 000 was deposited into a savings account that provides an interest of 6.5%…

A: A savings account is a deposit account opened with banks and other financial institutions. The…

Q: Deposits of $100 are made at the end of each calendar year from 2014 through 2019 inclusive. The…

A: Perpetuity is a series of payment which is made for an indefinite period of time. It does not end in…

Q: An annual deposits of A1 $2000 in a saving account is made for 7 years starting at year 3. In year…

A: Deposit means the amount which has been credited in various bank accounts which leads to increase in…

Q: $30,000 is deposited in an account in which it earns 10% interest compounded annually. No principal…

A: Interest is defined as the payment from the deposit taking or the borrower's financial institution…

Q: The trustees of a college have accepted a gift of $175,000, but are required to deposit it in an…

A: Here, Amount DepositedToday $1,75,000.00Interest Rate10%Compounding Period (Semi Annual)2Withdrawal…

Q: $30,624 is put into an empty savings account with a nominal interest rate of 0.1. No other…

A: Initial amount (P) = $30624 Interest rate = 0.1 = 10% per annum = 5% semiannually n = 10 years = 20…

Q: On September 8, Bert Sarkis started an annuity. He arranged to have $60 deducted from his…

A: (a)Deduction amount at month-end paycheck, A = $60 Interest rate = 7% compounded monthlyInterest…

Q: Purdum Farms borrowed $10 million by signing a five-year note on December 31, 2015. Repayments of…

A: A company's short-term financial commitments that are due within a year or within a typical…

Q: A depositor opens a new savings account with $4000 at 6% compounded semiannually. At the beginning…

A: The FV of an investment refers to the total value of its cash flows at a fixed future date assuming…

Q: James made an initial deposit into an account of $1,000 at time t = 0, followed by five annual…

A: Present Value(PV) refers to current value of amount that is to be paid or received in future. It is…

Q: At the start of this year, $10,000 was deposited into an account that earns an effective annual…

A: The FV of the payment series refers to the value of the cash flows at a fixed future date assuming…

Q: On September 1, 2010, you decided to put $ 15000 in a money market fund. On March 1, 2015, you…

A: The future value of an investment is the approximate value of buying and holding an investment for a…

Q: Dont give me wrong answer otherwise I will give you unhelpful rate

A: 1. Amount of Purchases:Formula:Purchases = Cost of Goods Sold + Ending Inventory - Beginning…

Q: On April 2, 2020, shortly after the $7.5 million deposit outflow, Key Bank had borrowed the needed…

A: Introduction: A balance sheet is a summary of a company's financial situation based on specific…

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.