Dirk Ward borrowed $13,000.00 for investment purposes on May 13 on a demand note providing for a variable rate of interest and payment of any accrued interest on December 31. He paid $900 onJune 8, $200 on September 10, and $600 on November 20. How much is the accrued interest on December 31 if the rate of interest was 8% on May 13, 8.6% effective August 1, and 9.2% effectiveNovember 1?The accrued interest on December 31 is $ ☐ .(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

The accrued interest on December 31 is $4,055.31.Explanation:Calculating Accrued Interest on Demand…

Answered: Dirk Ward borrowed $13,000.00 for…

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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Carla borrowed $1010.00 from the Central Bank at 8.8% per annum calculated on the monthly unpaid balance. She agreed to repay the loan in blended payments of $220.00 per month. Construct a complete repayment schedule for the loan including totals for Amount Paid, Interest Paid, and Principal Repaid. Complete the repayment schedule below. (Round to the nearest cent as needed.) Payment Number Balance Before Payment Amount Paid Interest Paid Principal Repaid Balance After Payment S1010.00 1 $1010.00 $220.00
On October 5, Tristan Sandino borrowed $3,050 to buy an English bulldog. The loan carried a rate of 4% and Tristan agreed to pay a maximum of $105 in interest. What is the maturity date of this loan? Assume a 365-day year. Express your answer as month and day.
On January 1, 2018, Brown Co. borrowed cash from First Bank by issuing a $42,000 face value, four-year term note that had an 6 percent annual interest rate. The note is to be repaid by making annual cash payments of $12,121 that include both interest and principal on December 31 of each year. Brown used the proceeds from the loan to purchase land that generated rental revenues of $22,260 cash per year. Prepare an income statement, a balance sheet, and a statement of cash flows for each of the four years.
On March 1, 2020 Giant Jumbo Clown Costumes borrowed money from Second Friendly National Bank by issuing a $125,000, 180-day, non-interest bearing note. The note was discounted on a 13.5% basis. Assume 360 days in a year. Required: Compute the following: 1. How much money did Giant Jumbo receive? 2. What was the total amount of interest paid? 3. What is the effective 180-day interest rate on this note payable? 4. What is the approximate annual effective interest rate on this note payable? 5. Record the journal entry(ies)for the issuance of the note.
Blake Miller recently received his monthly MasterCard bill for the period June 1-30, 2021, and wants to verify the monthly finance charge calculation, which is assessed at a rate of 23 percent per year and based on ADBs, including new purchases. His outstanding balance, purchases, and payments are as follows: Previous Balance: $303 Purchases: Payments: June 4 $111 June 21 $35 June 12 $45 June 20 $127 June 26 $43 What are his ADB and finance charges for the period? (Use a table like the one in Exhibit 6.7 for your calculations.) Round the answers to the nearest cent. ADB: $ Finance charges: $
Joan Messineo borrowed $44,000 at a 6 percent annual interest rate to be repaid over three years. The loan is amortized into three equal annual end-of-year payments.a. Calculate the annual end-of-year loan payment.b. Prepare a loan amortization schedule showing the interest and principal breakdown of each of the three loan payments.c. Explain why the interest portion of each payment declines with the passage of time.
On May 6, Jim Ryan borrowed $14,000 from Lane Bank at 7 1/2% interest. Jim plans to repay the loan on March 11. Assume the loan is on ordinary interest. How much will Jim repay on March 11? (Use Days in a year table.) (Round your answer to the nearest cent.) Jim Repay
On March 8, Manuel borrowed $720.00 from his uncle at 4.3% per annum calculated on the daily balance. He gave his uncle six cheques for $110.00 dated the 8th of each of the next six months starting April 8 and a cheque dated October 8 for the remaining balance to cover payment of interest and repayment of principal. Construct a complete repayment schedule for the loan including totals for Amount Paid, Interest Paid, and Principal Repaid. Complete the repayment schedule below. (Round to the nearest cent as needed.) Balance Before Payment Amount Paid Balance After Payment Payment Number O Mar. 8 Interest Paid Principal Repaid $720.00 1 Apr. 8 $720.00 $110.00 2 May 8 $110.00 3 June 8 $110.00 4 July 8 $110.00 5 Aug. 8 $110.00 6 Sept. 8 $110.00 7 Oct. 8 $0.00 Totals:
On October 31st, David signed a 4-month, $5,000 simple interest loan earning 7. Find the maturity date, interest, and maturity value.

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