FOLLOWING QUESTIONS: 1. Consider that the number of periods and the amount of equal installment every year is the same with the given yet the prevailing market interest rate is 10%, how much would be the present value at 01/01/2020? A.973,684 B.1,088,815 C.1,217,105 D. 1,241,910 2. How much is the interest expense on December 31, 2020? A. 91,121 B. 108,143 C. 123,342 D. 136,913 3. How much is the interest expense on December 31, 2021? A. 108,143 B. 123,342 C. 136,913 D. 250,000 4. How much is the Present value at December 31, 2022? A. 600,459 B. 759,339 C. 901,195 D. 1,027,853 5. How many periods or equal installments to pay the Note Payable? A. 5 B. 6 C. 7 D. 8 6. How much is the annual installments? A. 200,000 B. 225,000 C. 250,000 D. 260,000 7. On 12/31/2020, the CURRENT PORTION of the Note Payable would be? A. 113,087 B. 126,658 C. 141,857 D. 158,879 PLEASE PROVIDE SOLUTIONS EVERY ANSWERS. THANK YOU!
FOLLOWING QUESTIONS: 1. Consider that the number of periods and the amount of equal installment every year is the same with the given yet the prevailing market interest rate is 10%, how much would be the present value at 01/01/2020? A.973,684 B.1,088,815 C.1,217,105 D. 1,241,910 2. How much is the interest expense on December 31, 2020? A. 91,121 B. 108,143 C. 123,342 D. 136,913 3. How much is the interest expense on December 31, 2021? A. 108,143 B. 123,342 C. 136,913 D. 250,000 4. How much is the Present value at December 31, 2022? A. 600,459 B. 759,339 C. 901,195 D. 1,027,853 5. How many periods or equal installments to pay the Note Payable? A. 5 B. 6 C. 7 D. 8 6. How much is the annual installments? A. 200,000 B. 225,000 C. 250,000 D. 260,000 7. On 12/31/2020, the CURRENT PORTION of the Note Payable would be? A. 113,087 B. 126,658 C. 141,857 D. 158,879 PLEASE PROVIDE SOLUTIONS EVERY ANSWERS. THANK YOU!
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
FOLLOWING QUESTIONS:
1. Consider that the number of periods and the amount of equal installment every year is the same with the given yet the prevailing market interest rate is 10%, how much would be the present value at 01/01/2020?
A.973,684
B.1,088,815
C.1,217,105
D. 1,241,910
2. How much is the interest expense on December 31, 2020?
A. 91,121
B. 108,143
C. 123,342
D. 136,913
3. How much is the interest expense on December 31, 2021?
A. 108,143
B. 123,342
C. 136,913
D. 250,000
4. How much is the Present value at December 31, 2022?
A. 600,459
B. 759,339
C. 901,195
D. 1,027,853
5. How many periods or equal installments to pay the Note Payable?
A. 5
B. 6
C. 7
D. 8
6. How much is the annual installments?
A. 200,000
B. 225,000
C. 250,000
D. 260,000
7. On 12/31/2020, the CURRENT PORTION of the Note Payable would be?
A. 113,087
B. 126,658
C. 141,857
D. 158,879
PLEASE PROVIDE SOLUTIONS EVERY ANSWERS. THANK YOU!
Transcribed Image Text:On 1/1/2020, Luffy Corp purchas ed an equipment for P1,750,000 payable in equal
installments on every December 31 of each year. The imputed interest rate is 12%.
You are given the following data:
periods
10%
12%
PV of an ordinary annuity of 1
PV of an ordinary annuity of 1
PV of an ordinary annuity of 1
PV of an ordinary annuity of 1
3.79079
3.60478
4.35526
4.11141
7
4.86842
4.56876
8.
5.33493
4.96764
Present Value 1/1/2020
1,140,940
Interest Expense 12/31/2020
136,912.80
Present Value 12/31/2020
1,027,852.80
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