Assuming a 360-day year, proceeds of $42,936 were received from discounting a $44,037, 90-day note at a bank. The discount rate used by the bank in computing the proceeds was Select the correct answer. 11% 8% 12% 10%

Assuming a 360-day year, proceeds of $42,936 were received from discounting a $44,037, 90-day note at a bank. The discount rate used by the bank in computing the proceeds was Select the correct answer. 11% 8% 12% 10%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Assuming a 360-day year, proceeds of $47,000 were received from discounting a $47,910, 90-day note…

A: Discount rate is used to calculate the interest between proceeds and Received from Discounting

Q: Thornton borrowed $250,000 at a rate of 7.25%, simple interest, with interest paid at the end of…

A: Simple interest is simple interest that means there is interest on the principal amount only and…

Q: Exercise 7-26 (Algo) Discounting a note receivable [LO7-8] Selkirk Company obtained a $24,000 note…

A: Interest receivable (Jan to feb) = $24,000×10%×2/12 = $400

Q: Boyd earned $35,000 of cash revenue during Year 1. Required Prepare an income statement and balance…

A: Concept of Working capital finance Bank finance - Credit Line from Bank Interest Calculation Profit…

Q: A bank bill with a face value of $200,000 was issued today and it matures in 90 days' time. If…

A: A banknote is a revocable promissory note that can be used to pay another person a certain amount of…

Q: Carey Company is borrowing $375,000 for one year at 12.5 percent from Second Intrastate Bank. The…

A: The effective rate is the nominal rate after making adjustments for the frequency of interest in a…

Q: Assuming a 360-day year, proceeds of $50,708 were received from discounting a $52,276, 90-day note…

A: Notes Receivable :— It is one of the promissory notes that specifies certain sum of money receivable…

Q: What is the outstanding balance of the loan after the 2nd year

A: Compound interest is the amount of interest charged on interest. In this method the interest…

Q: Proceeds from Notes Payable On January 26, Vibrant Co. borrowed cash from Conrad Bank by issuing a…

A: The cost of borrowing money over a given time period is expressed as interest, which is often stated…

Q: ABC Company acquired a loan from New Kensington Bank in the amount of $120,000 with a 8% interest…

A: The question is related to Effective Interest rate. The details given are Amount of loan =…

Q: Mobile Co. issued a $47,563, 60-day, discounted note to Guarantee Bank. The discount rate is 6%. At…

A: Note: Discounted notes are issued at discount. The amount to be paid by the borrower at the time of…

Q: A bank makes payments continuously at a rate of $400 a year. The payments are made between 5 and 7…

A: The present value is the discounted value of the future cash flows. It is calculated by discounting…

Q: Halep Inc. borrowed $30,000 from Davis Bank and signed a 4-year note payable stating the rate was 4%…

A: The question is based on the concept of Financial Accounting. When the loan is taken then the…

Q: The following certificate of deposit (CD) was released from a particular bank. Find the compound…

A: Deposit amount (P) = $3500 Interest rate (r) = 8% Number of compounding per year (m) = 365 Period…

Q: Abardeen Corporation borrowed $85,000 from the bank on October 1, Year 1 . The note had an 10…

A: The interest expense is collected by a lender to their borrowers. The interest expense on the note…

Q: Assuming a 360-day year, proceeds of $41,011 were received from discounting a $42,171, 90-day note…

A: Amount of discount is $42,171 - $41,011 = $1,160 for 90 days. Therefore for a 360 day year, it would…

Q: A company factored $100,000 of accounts receivables. The factor discounted the receivables for 9%…

A: The Factoring accounts receivable is an process where the company sells its accounts receivable to a…

Q: The effective annual rate of discount has been 4% for the last 5 years. Prior that, it was 5%. A…

A: Present value refers to the current value of an asset that will be present at some future date using…

Q: The following certificate of deposit (CD) was released from a particular bank. Find the compound…

A: A certificate of deposit(CD) is a type of savings account that offers a higher interest rate than a…

Q: Using ordinary interest, 360 days, calculate the missing information for the simple discount note.…

A: Note means an instrument acknowledging as debt due from one party to another party. It carry defined…

Q: When $8,600 is invested in a savings account paying simple interest for the year, the interest, i in…

A: Given information,The equation i = 8,600r represents a simple interest calculation. It states that…

Q: A college savings fund is opened with a $12,000 deposit. The account earns 6.55% annual interest…

A: Present value = pv = $12,000 Interest rate = r = 6.55% Time = t = 18 years

Q: The following certificate of deposit (CD) was released from a particular bank. Find the compound…

A: A Certificate of Deposit refers to a time deposit that provides the holder with fixed interest for a…

Q: The following certificate of deposit (CD) was released from a particular bank. Find the compound…

A: The compound amount is the future value or accumulated value. Compound amount = Amount of deposit *…

Q: Canadian Western Bank offers a Summit Savings Account with posted interest rates as indicated in the…

A: The interest rates offered by the bank are:BalanceInterest Rate $0 - $5000.000%$5000.01 -…

Q: Assuming a 360-day year, proceeds of $47,444 were received from discounting a $48,147, 90-day note…

A: Promissory Notes :— It is a written document that contains promise to pay certain sum of money to…

Q: Proceeds

A: Notes Payable is a financial instrument used for borrowing money from Bank or any other Financial…

Q: alculate the missing amount for each of the following notes receivable. Face Value $ $ 9,000 10,000…

A: Interest is the amount of profit earned by the lender on given loan amount or debt amount.

Q: Shelley Corporation discounted a $7,000, 90-day note dated June 18 at the Sunshine Bank on July 18…

A: Banks provide the facility of Note/ Bill discounting, where we can discount our Notes or Bill…

Question

Assuming a 360-day year, proceeds of $42,936 were received from discounting a $44,037, 90-day note at a bank. The discount rate used by the bank in computing the proceeds was

Select the correct answer.

11%

12%

10%

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Assuming a 360-day year, proceeds of $46,510 were received from discounting a $47,941, 90-day note at a bank. The discount rate used by the bank in computing the proceeds was a.13.18% b.13.69% c.9.94% d.11.94%
Chang Co. issued a $51,600, 120-day, discounted note to Guarantee Bank. The discount rate is 10%. Assuming a 360-day year, the cash proceeds to Chang Co. are ______ .Round your answer to the nearest whole dollar. a.$51,600 b.$56,760 c.$49,880 d.$52,030
The following certificate of deposit (CD) was released from a particular bank. Find the compound amount and the amount of interest earned by the following deposit. $2500 at 6% compounded daily for 2 years. What is the compound amount? (Round to the nearest cent.)
The following certificate of deposit (CD) was released from a particular bank. Find the compound amount and the amount of interest earned by the following deposit. $3000 at 5.7% compounded quarterly for 5 years. What is the compound amount?
A bank bill with a face value of $100,000 was issued today and it matures in 60 days' time. If interest rates are 6% p.a. what amount of interest is earned if the bill is held until maturity? a. $99,023.33 b. $1,457.88 C. $976.67 Od. $6,000.00 Oe. $78,260.87
A $7,000, 4%, 120-day note dated March 20 is discounted on July 15. Assuming a 3% discount rate, the bank discount is: Multiple Choice $1.74 $1.77 $93.33 $70.00
Jami's Home Repair borrows $6,000, at 13.75% interest, for 330 days. Use the exact interest method to find the amount of interest that the bank will collect. (Round to the nearest cent.) Ⓒ$600.00 Ⓒ$640.00 $745.89 Ⓒ$8,200.00
Using ordinary interest, 360 days, calculate the missing information for the simple discount note. (Round dollars to the nearest cent.) Face Discount Value Rate (%) Date of Note Term (days) Maturity Date Bank Discount (in $) Proceeds (in $) $16,700 10 June 8 70 --Select-- O $ $ Need Help? Read It
A lump sum deposit of $8,000 left in the bank for 12 years at 9% compounded annually will result in an ending balance of (select the closest answer) Group of answer choices $16,640. $96,000. $11,600. $22,501. $52,938.