Janess company bought a new machine and agreed to pay in equal annual installment of P300,000 at the end of each of the next 5 years. The prevailing interest rate for this type of transaction is 12%. The rpesent value of an ordinary annuity of 1 at 12% for five periods is 3.60. The future amount of an ordinary annuity of 1 at 12% for five periods is 6.35. The present value of P1 at 12% for five periods is 0.567. What amount should be reported as note payable if financial statements were prepared today?

Janess company bought a new machine and agreed to pay in equal annual installment of P300,000 at the end of each of the next 5 years. The prevailing interest rate for this type of transaction is 12%. The rpesent value of an ordinary annuity of 1 at 12% for five periods is 3.60. The future amount of an ordinary annuity of 1 at 12% for five periods is 6.35. The present value of P1 at 12% for five periods is 0.567. What amount should be reported as note payable if financial statements were prepared today?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

An annuity - immediate that pays $456.57 quarterly for the next 8 years costs $10500. Calculate the nominal interest rate convertible monthly earned by this investment. ANSWER = %.
Find the present value of an ordinary annuity with payments of $90,000.00 paid annually for 25 years at 4% per year compounded annually. (Round your answer to the nearest cent.)
Assuming a 12% annual interest rate, determine the present value of a five-period annual annuity of $6,500 under each of the following situations: Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) 1. The payments are received at the end of each of the five years and interest is compounded annually. 2. The payments are received at the beginning of each of the five years and interest is compounded annually. 3. The payments are received at the end of each of the five years and interest is compounded quarterly. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Deposit Date The payments are received at the end of each of the five years and interest is compour Note: Round your final answers to nearest whole dollar amount. First payment Second payment Third payment Fourth payment Fifth payment j= 3% 3% 3% 3% 3% Required 3 X Answer is complete but not entirely corre n= 4 ✓ $ 8 12 16 ✓…
Find the accumulated value of an annuity-immediate which pays 1 at the end of each half-year for five years, if the rate of interest is 7% convertible semi-annually for the first two years, 9% convertible semi-annually for the next two years, and 8% convertible semi-annually for the last year.
Find the present value of an annuity of P2,500 for 22 years and 9 months at 12% compounded quarterly.
Z company paid TL 10000000 at the end of the 20th year for its 7.5% interest rate and 20-year maturity loan from XYBANK. What would be the annual cash amount if the company paid this loan in equal installments?
A sum of $20,000 is borrowed at an interest rate of 8 percent on the unpaid balance compounded semiannually, The loan is to be paid back with 10 equal payments in 20 years The payments are to bo made every 2 years, starting at the end of the second year. What is the amount of each biennial payment?
An annuity immediate has quarterly payments of P 5,000 for 6 years at a rate of 4% convertible semiannually. Find its present value.SHOW MANUAL SOLUTIONS
An investment involves annuity of Php 1172.00 compounded 17.2 times a year at an interest 1.72%. The annuity is to be paid in 46 years. Calculate the annual difference in annuities if the interest is compounded only once a year. (please solve neatly and readable and correctly)
A man bought an eapt casting P300k payable in 12 quarter payments with i = 24%, determine installment of payment is made: (a) at the end of each period b) at the beginning of each period What would be its corresponding future value of the annuity?