John signed a 90-day note with a face value of $6,000 and a discount rate of 14.57%. How much did the John receive from the bank?  (ordinary time)

Q: I borrowed $3650 from a bank for 8 months. The bank discounted the loan at 7.5%. How much interest…

A: We need to use simple interest formula below to calculate interest or discount on loan.Simple…

Q: Joshua borrowed $1,400 for one year and paid $70 in interest. The bank charged him a service charge…

A: Principal Amount = p = $1400Interest = i = $70Service Charges = sc = $12Number of Payment = n = 12

Q: John borrows $700 from a bank. He promises to pay $749 in 1 year's time. How much interest is john…

A: Time value of money is one of important concept of finance. It means a dollar amount invested today…

Q: James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: Darcy holds a 200 day note from Brenda. This note was given by Brenda to Darcy since the former ow…

A:

Q: Michael Perez deposited a total of $3000 with two savings institutions. Bank A pays interest at the…

A: Total amount deposited = $3,000Bank ALet Amount deposited in Bank A be P.Annual interest rate = 6%…

Q: 6. Jasper Brown deposited $743.20 in a savings account at the Suburban Trust Com- pany on May 1. At…

A:

Q: vince has just opened an 18-month certificate of deposit on which interest compounds daily. he…

A: Certificate of deposit refers to a savings account that pays a fixed rate of interest for a definite…

Q: James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and…

A: Discount on notes = Notes payable x discount rate x no. of days/360 =$18,000*10%*90/360 = $450

Q: Martin makes a deposit and has these bills: 18 ones, 3 fives, 12 tens, and 6 twenties. He also has…

A: Net Deposit = Total Cash + Total Checks - Cash to be received

Q: Raul Fletes borrowed $9,500 on a 90-day note that required ordinary interest at 11.97%. Raul paid…

A: Interest PaymentsInterest payments refer to the money paid by a borrower to a lender for the use of…

Q: James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: anice Dart signed a 140-day simple discount note at a rate of 9.9% with a maturity value of $82,000.…

A: calculation of Discount on original Note = Maturity value x Interest rate x (No.of days/365) =…

Q: 1. On August 1 you opened a new savings account with a deposit of $1,400. The interest rate paid by…

A: Initial deposit on August 1 is :

Q: Use the ordinary interest method, 360 days, to solve the following word problem. Round to the…

A: Since the maturity value is know which is $27,500 Discount Rate = 16% Made on 15 February Days till…

Q: Wayne signed a $10,000 note at Lynn Bank that charges a 7% discount rate. Use ordinary interest. If…

A: 7% discount rate is for 150 days.  1. To calculate proceeds, deduct interest from signed amount.  2.…

Q: James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: Use the ordinary interest method, 360 days, to solve the following word problem. Round to the…

A: Frist we need to calculate the bank discount by using this equation  Bank discount =Maturity…

Q: Use the ordinary interest method, 360 days, to solve the fol problem. Round to the nearest cent when…

A: Interest amount on promissory note = note value (principal) x rate x time /100

Q: A year ago your Aunt Sheri deposited $ 1 comma 000 in a bank account. One year later, there was $ 1…

A: To find the Annual Percentage Rate (APR) compounded monthly, we can use the formula for compound…

Q: On August 1, Rachael Westlake joined a Christmas Club. Her bank will automatically deduct $120 from…

A: The present value of the given annuity: The present value of the annuity due in the future is the…

Q: How much was the check he gave to the bank for payment?

A: Future value can be referred to as the value of an underlying asset or security at a future date.…

Q: Lawrence signs a note promising to pay Justin $2500 at 11.25% compounded monthly in 7 years.…

A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…

Q: on for 6 years and was charged om borrowed money from a simple interest at an annual rate of 8%. The…

A: Simple Interest can be calculated using the formula given below Simple Interest = (Principle x Rate…

Q: Assume simple interest and find the rate of interest paid by the bank.

A: The amount deposited in the bank is $6,400. The amount received is $6,453.33 The interest paid by…

Q: On May 1, Cleveland Livingston opened a savings account that paid 3.5% interest at Fulton Savings…

A: Saving account: A savings account is an interest-bearing deposit account with a bank or other…

Q: Joaquin deposits $400 at the end of each month into his bank account. The bank account pays 13.2%…

A: The difference between the future value and present value of money refers to the concept of the time…

Q: Use the ordinary interest method, 360 days, to solve the following word problem. Round to the…

A: The promissory note is a legal instrument that is written by one party to another by making a…

Q: Peter buys an item from Sue and signs a note to pay $315 in 10 months. Then, 3 months before the…

A: Due to the legal duty for a business to return borrowed monies in the future, sometimes with…

Q: Everlyne has a personal LOC with her bank with a maximum credit limit of $9,000.00. The interest…

A: Repayment schedule refers to the repayment of the loan and interest charged. Easy monthly…

Q: Assume that Louisa carried an average balance of $1,000 from her credit card purchases over the past…

A: Interest charges are the amount of cost and charges paid for the amount borrowed either for personal…

Q: Darcy holds a 200 day note from Brenda. This note was given by Brenda to Darcy since the former owes…

A: ANSWER:- $ 72,024.65 is the bank going to receive on the 200th day of the note

Q: Raul Fletes borrowed ​$9,500 on a 120​-day note that required ordinary interest at 12.03​%. Raul…

A: In this we have to calculate the interest of both and than get the remaining interest.

Q: Mr. Smith did not pay his full credit card balance on June 5th, the due date each month for payment.…

A: Interest charge refers to an amount that is being charged on the balance amount over the period that…

Q: Dave borrowed $730 on January 1, 2019. The bank charged him a $4.00 service charge and interest was…

A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…

Q: James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and…

A: Interest on note = Notes x interest rate x no. of days/365 = (30000-4000)*10%*30/360 = $217

Q: Sean purchased an interest-bearing promissory note for $11,000.00 at 5.00% p.a., due in 90 days. If…

A: The promissory note refers to a debt instrument that is issued by a person who writes a note by…

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.