A bank charges 10% bank discount on short-term loans. Find the maturity value of the non-interestbearing note given by the bank, if the borrower receives Php 3,000 from July 5 to September 19,2012.Select the correct response:Php 3,305.32Php 3,490.89Php 1,616.28Php 3,064.70

Discount is the amount that being charged on the notes and that discount is the interest on the note…

Answered: Dank charges 10% bank discount on…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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4. Jill Hamlin borrowed $40,000 from the bank on August 16, issuing the bank a 12% note. The entry to record accrued interest on the note on August 31 (15 days later) would include: a . debit Interest Expense for $197.26 b. debit Interest Payable for $197.26 c. credit Interest Expense for $407.67 d. credit Interest Payable for $407.67 d. debit Cash for $18,000
Shelley Corporation discounted a $7,000, 90-day note dated June 18 at the Sunshine Bank on July 18 at a discount rate of 12%. (Assume the $7,000 is the maturity value.) The amount of bank discount is: Multiple Choice $6,790 $210 $140
6. A borrower signs a loan agreement for $50,000. Out of this, the lender charges a $500.00 loan origination fee and two discount points. How much cash does the borrower get?
Assuming a 360-day year, proceeds of $47,044 were received from discounting a $47,639, 90-day note at a bank. The discount rate used by the bank in computing the proceeds was Select the correct answer. 6% 3% 5% 7%
Mobile Co. issued a $49,712, 60-day, discounted note to Guarantee Bank. The discount rate is 12%. At maturity, assuming a 360-day year, the borrower will pay: Select the correct answer. a-$49,712 b-$48,718 c-$43,747 d-$50,706
If you sign a discount note for $7,500 at a bank discount rate of 5% for 3 months, what is the effective interest rate? Round to the nearest tenth percent. Step 1 The effective interest rate is the actual interest rate charged on a discounted note and takes into account the fact that the borrower does not receive the full amount of the principal. It is calculated using the bank discount, the proceeds, and time. The bank discount is calculated as follows where the discount rate is given as a decimal and the time will be a fraction whose numerator is the given amount of time in months and denominator is 12 months. bank discount = face value ✕ discount rate ✕ time The rate was given to be 5%. As a decimal, we have . Calculate the bank discount (in $) for the $7,500 promissory note at a discount of 5% for 3 months. bank discount = face value ✕ discount rate ✕ amount of time in months 12 months = $7,500 ✕ ✕ 3 12 = $
Bencorp issues a $90,000, 6-month, noninterest-bearing note that the bank discounted at a 10% discount rate. Required: 1. Prepare the appropriate journal entry to record the issuance of the note. 2. Determine the effective interest rate. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the appropriate journal entry to record the issuance of the note. (If no entry is required for a tr journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 Record the issuance of $90,000, 6-month, non-interest-bearing note issued at a 10% discount rate. Note: Enter debits before credits.
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
On April 1, Year 1, Halo Co. issued a $5,000 face value discount note to the Capri Bank. The note had a 12 percent discount rate and a one-year term. 8. The amount of cash Halo received on April 1, Year 1, was a. $5,000. b. $4,250. c. $4,400. d. $5,500. 9. The total carrying value of Halo’s liabilities on December 31, Year 1, would be a. $5,600. b. $5,000. c. $5,450. d. $4,850. 10. If Halo Co. earned $2,000 of revenue in Year 1, the amount of net income would be a. $2,000. b. $1,550. c. $1,400. d. $1,850.
1- Asim has received Rs. 6,500 from discounting a bill having 3 years and 4 months to maturity. If the face value of the bill is Rs. 7,500. Calculate at which rate the bank has discounted his bill?a. 3%b. 4%c. 5%d. 6% 2- Ali has a bill of 14,500 rupees. He goes to a bank for discounting it. Bank offers him 6.5% simple discount on it. How much he will receive from that bill if the bill has 5 years to maturity?a. Rs. 9,887.5b. Rs. 9,987.5c. Rs. 9,777.5d. Rs. 9,787.5
Only typed answer On May 4, a company accepted an $8200 note in settlement of a bill. The note was for 190 days at 8.75% simple interest. If the company sells the note to a loan company at a 12.0% discount 60 days after receipt, the bank discount? The proceeds are?
Bank A makes a loan of $10,000 to Company B at a 10% interest rate. Which of the following is the correct journal entry for Bank A the day the loan is made? Group of answer choices Option A.)Dr. Cash (+A) $10,000 Cr. Notes Payable (+L) $10,000 Option B) Cr. Notes Payable (+L) $10,000 Dr. Cash (+A) $10,000 Option C) Dr. Notes Receivable (+A) $10,000 Cr. Cash (-A) $10,000 Option D) Dr. Notes Receivable (+A) $11,000 Cr. Cash (-A) $11,000 ANSWER BEFORE 11:30!!

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Dank charges 10% bank discount on short-te aring note given by the bank, if the borrower 12. elect the correct response: Php 3,305.32 Php 3,490.89 Php 1,616.28