On July 7, University Bank lent $520,000 to Jazz Music Shop on a 60 day, 7% noto What is the maturity value of the note? (Use a 365-day year. Do not round intermediate calculations, and round the final answer to the nearest dollar) OA. $525,984 OB. $526,067 OC. $520,000 OD. $556,400 Cirma)

On July 7, University Bank lent $520,000 to Jazz Music Shop on a 60 day, 7% noto What is the maturity value of the note? (Use a 365-day year. Do not round intermediate calculations, and round the final answer to the nearest dollar) OA. $525,984 OB. $526,067 OC. $520,000 OD. $556,400 Cirma)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: прапу What formula should Hardy Company uses add-on interest? Gordon Company signed a note payable…

A: When a person or company borrows money, a formal agreement for repayment of money and stated rate of…

Q: Text LO 13.2 Following is a list of scenarios, Identify if the bond was issued at par, premium or…

A: Hi student Since there are multiple questions, we will answer only first question. Bonds payable is…

Q: Answer the following questions. (Round interest rate to 0 decimal places, e.g. 7%.) (1) If the note…

A: Given information Interest expenses = $511 Notes payable ( p ) = $4700 Duration (n) = 3 months…

Q: The First Bank of Lending lists the following APR for loans. Determine the APY, or effective…

A: The effective rate of interest is the effective rate of interest per annum including the effect of…

Q: Solve for maturity value, discount period, bank discount, and proceeds. Assume a bank discount rate…

A: In the period which are less than 1 year than calculations are done based on simple ordinary…

Q: Bamble supply accepts a $3,000, 120-day, 4% note dated April 10 from Clairmont in settlement of…

A: Let's understand the basics.When borrower is in needs of funds then they issue notes payable against…

Q: A $7,500.00 demand loan was taken out on March 4 at a fixed interest rate of 7.66% with fixed…

A: In demand loans, the lender has the right to "call" the loan, demanding full repayment immediately…

Q: Compute interest and find the maturity date for the following notes. (Round intermediate…

A: Principal is the money that you originally agreed to pay other party at a maturity date. Interest is…

Q: Recording Entries for Long-Term Note Receivable: Effective Interest Method On January 1 of Year 1.…

A: A note receivable is a written agreement to pay a certain sum of money to another party on one or…

Q: The First Bank of Lending lists the following APR for loans. Determine the APY, or effective…

A: APR is the annual rate of interest which is charged on a loan. The borrower needs to make loan…

Q: Halep Inc. borrowed $30,000 from Davis Bank and signed a 4-year note payable stating the rate was 4%…

A: The question is based on the concept of Financial Accounting. When the loan is taken then the…

Q: he interest on a $ 21000, 6%, 60-day note receivable is (Use 360 days for calculation.) $ 210. $…

A: Introduction:- A written promise from a customer to pay a specific amount of money on a particular…

Q: Complete the following table: (Use Table 15.1.) Note: Round your intermediate calculations and final…

A: The process of amortization is used to account for the progressive reduction of a liability or to…

Q: Using the ordinary interest method, find the amount of interest on a loan of $5,000 at 10% interest,…

A: To calculate the interest amount we will use the below formula Ordinary interest = P*r*d/360 Where…

Q: Determine the maturity date and compute interest for each note. (Use 360 days a year. Do not round…

A: Contract datematurity monthMaturity dateInterest expense…

Q: hat is the effective interest rate of a simple discount note for $27,500,at an ordinary bank…

A: Effective Interest Rate -The rate used to compute the real return on investment and interest rate…

Q: Using ordinary interest, 360 days, calculate the missing information for the simple discount note.…

A: Note means an instrument acknowledging as debt due from one party to another party. It carry defined…

Q: Determine the maturity date and compute interest for each note. Note: Use 360 days a year. Do not…

A: The date that the principal balance of a note, draft, acceptance bond, or other financial instrument…

Q: On Oct 1, 20X1 ABC Co. discounted a one year 12% P600,000 note received from a customer on January…

A: Note discounting: Note discounting means selling or pledging of the notes to the bank prior to the…

Q: 1 Required: Complete the following table by computing the missing amounts for the following…

A: A financial instrument known as a "notes receivable" is a written commitment made by one party (the…

Q: The Mutt Hut Pet Shop borrowed $59,000 on March 1 for 132 days. The rate was 11% using the ordinary…

A: Given information: Amount borrowed $59,000 Interest rate 11% loan term 132 days First…

Q: Legitimate Financial Services made a loan at 9.75% interest for 252 days. If the amount of interest…

A: The objective of this question is to find the principal amount borrowed given the interest rate, the…

Q: Maturity Value (in $) Rate Time Interest Principal Interest (%) (days) Method $3,100 % 167 Exact…

A: Interest expense: It is the interest which is incurred by the organization on the debt taken by it.…

Q: On November 1, 20x1, ABC discounted a P1,000,000, 90-day note, received from a customer on September…

A: Discounting of notes receivable is a technique where in a business entity discounts its note…

Q: Required: Complete the following table by computing the missing amounts for the following…

A: A financial instrument known as a "notes receivable" is a written commitment made by one party (the…

Q: loan of 15700 was charged a simple discount rate of 4.2%. If the proceeds received were 15463.72,…

A: find the amount of bank discount.:: Bank discount=Proceeds -Maturity value=$15463.72-$15700=238.28$…

Q: Current Attempt in Progress The Cullumber Bank requires borrowers to keep an 10 percent compensating…

A: Amount to be borrowed = $480,000Compensating balance = 10%Stated APR = 8%

Q: Complete the following, using exact interest. (Use Days in a year table.) Note: Do not round…

A: Loan - $ 1300 Interest – 7% Date borrowed= May 20 Date repaid = August 23

Q: Canadian Western Bank offers a Summit Savings Account with posted interest rates as indicated in the…

A: The interest rates offered by the bank are:BalanceInterest Rate $0 - $5000.000%$5000.01 -…

Q: 17. Walnut company received from a customer an 1-year, P200,000 note bearing annual interest of 8%.…

A: The maturity value of note is calculated as sum of principal value of note and interest earned.

Q: Complete the following, using ordinary interest. (Use Days in a year table.) Note: Do not round…

A: The borrower is the one who borrows money from the lender and the lender charges interest for the…

Question

On July 7, University Bank lent $520,000 to Jazz Music Shop on a 60 day, 7% noto What is the maturity value of the note? (Use a 365-day year. Do not round intermediate
calculations, and round the final answer to the nearest dollar)
OA. $525,984
OB. $526,067
OC. $520,000
OD. $556,400
Cirma)

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Central Auto Parts borrowed $550,000 at 9% interest on July 10 for 140 days. (a) If the bank uses the ordinary interest method, what is the amount (in $) of interest on the loan? $ (b) What is the maturity date? November 25 X
State Bank made a loan at 12% interest for 360 days. If the amount of interest was $931.80, use the ordinary interest method to find the amount of principal borrowed. (Round to the nearest whole dollar.) $7,663 $7,765 $8,815 $9,678
Assuming a 360-day year, proceeds of $47,444 were received from discounting a $48,147, 90-day note at a bank. The discount rate used by the bank in computing the proceeds was a. 7.59% Ob. 7.08% Oc. 5.84% Od. 3.84%
Proceeds from Notes Payable On January 26, Nova Co. borrowed cash from Conrad Bank by issuing a 60-day note with a face amount of $37, 200. Assume a 360-day year. a. Determine the proceeds of the note, assuming the note carries an interest rate of 6%. Sfill in the blank 1 b. Determine the proceeds of the note, assuming the note is discounted at 6%. Sfill in the blank 2
Just as a heads up in the question it mentions ordinary interest, ordinary interest is 360 days instead of the full 365 days a year
Complete the following, using ordinary interest. (Use Days in a year table.) Note: Do not round intermediate calculations. Round the "Interest" and "Maturity value" to the nearest cent. $ Principal 1,328 Interest rate 5% Date borrowed June 08 Date repaid January 19 Exact time Interest Maturity value
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
Complete the following, using exact interest. (Use Days in a year table.) Note: Do not round intermediate calculations.Round the "Interest" and "Maturity value" to the nearest cent. Principal $ 2,900 Interest rate 9% Date borrowed May 21 Date repaid August 9 Exact time Interest Maturity value
PanAir Reservations (PAR) borrowed $270,000 for 36 days from its bank. The interest rate on the loan is 9 percent. Assume there are 360 days in a year. Calculate the APR and rEAR assuming the loan is a simple interest loan with no compensating balance requirement. Do not round intermediate calculations. Round your answers to two decimal places. APR: % rEAR: % Calculate the APR and rEAR assuming the loan is a simple interest loan with a 20 percent compensating balance requirement, and PAR currently holds no funds at the lending bank. Do not round intermediate calculations. Round your answers to two decimal places. APR: % rEAR: % How much would PAR have to borrow if it needed $270,000 to pay bills and the loan required a 20 percent compensating balance? Round your answer to the neares dollar. $
Complete the following, using exact interest. (Use Days in a year table.) Note: Do not round intermediate calculations.Round the "Interest" and "Maturity value" to the nearest cent. Principal $ 2,100 Interest rate 5% Date borrowed May 9 Date repaid August 14 Exact time Interest Maturity value
First American Bank charges 10.8 percent compounded monthly on its business loans. First Fifth Bank charges 11 percent compounded semiannually. Calculate the EAR for each bank. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) f3 First National Bank First United Bank % % As a potential borrower, which bank would you go to for a new loan? ** f4 f5 f6 Search ムー 17 4+ First National Bank hp f8 fg f10 144 DII DDI f11
Rako