On September 1, 2023, Blossom Ltd. purchased equipment for $25,200 by signing a two-year note payable $25,200 due on September 1, 2025. The going rate of interest for this level of risk was 6%. The company has a December 31 year end. (The tables in this problem are to be used as a reference for this problem.) Click here to view Table A.2-PRESENT VALUE OF 1-(PRESENT VALUE OF A SINGLE SUM) Click here to view Table A4-PRESENT VALUE OF AN ORDINARY ANNUITY OF 1 (a) x Your answer is incorrect. Calculate the cost of the equipment, where necessary using any of the three methods (tables, financial calculator, or Excel). assuming the note is as follows: (Round factor values to 5 decimal places, eg. 1.25124 and final answers to O decimal places, e.g. 5,275.) 1. 2. 3. 1. 2. 3. An 6% interest-bearing note, with interest due each September 1. A 2% interest-bearing note, with interest due each September 1. A non-interest-bearing note. An 6% interest-bearing note A 2% interest-bearing note A non-interest-bearing note Cost of the Equipment 22,428 24,221 25,200
On September 1, 2023, Blossom Ltd. purchased equipment for $25,200 by signing a two-year note payable $25,200 due on September 1, 2025. The going rate of interest for this level of risk was 6%. The company has a December 31 year end. (The tables in this problem are to be used as a reference for this problem.) Click here to view Table A.2-PRESENT VALUE OF 1-(PRESENT VALUE OF A SINGLE SUM) Click here to view Table A4-PRESENT VALUE OF AN ORDINARY ANNUITY OF 1 (a) x Your answer is incorrect. Calculate the cost of the equipment, where necessary using any of the three methods (tables, financial calculator, or Excel). assuming the note is as follows: (Round factor values to 5 decimal places, eg. 1.25124 and final answers to O decimal places, e.g. 5,275.) 1. 2. 3. 1. 2. 3. An 6% interest-bearing note, with interest due each September 1. A 2% interest-bearing note, with interest due each September 1. A non-interest-bearing note. An 6% interest-bearing note A 2% interest-bearing note A non-interest-bearing note Cost of the Equipment 22,428 24,221 25,200
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Am. 355.
Transcribed Image Text:On September 1, 2023, Blossom Ltd. purchased equipment for $25,200 by signing a two-year note payable with a face value of
$25,200 due on September 1, 2025. The going rate of interest for this level of risk was 6 %. The company has a December 31 year end.
(The tables in this problem are to be used as a reference for this problem.)
Click here to view Table A2-PRESENT VALUE OF 1-(PRESENT VALUE OF A SINGLE SUM)
Click here to view Table A4-PRESENT VALUE OF AN ORDINARY ANNUITY OF 1
(a)
x Your answer is incorrect.
Calculate the cost of the equipment, where necessary using any of the three methods (tables, financial calculator, or Excel).
assuming the note is as follows: (Round factor values to 5 decimal places, eg. 1.25124 and final answers to O decimal places, e.g. 5,275.)
1.
2.
3.
1.
2
3.
An 6% interest-bearing note, with interest due each September 1.
A 2% interest-bearing note, with interest due each September 1.
A non-interest-bearing note.
An 6% interest-bearing note
A 2% interest-bearing note
A non-interest-bearing note
Cost of the Equipment
22,428
24,221
25,200
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