Answered: P12,000 is borrowed now at 12%…

P12,000 is borrowed now at 12% interest. The first payment is P4000 and is made 3 years from now. The balance of the debt immediately after the payment is;

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: a. The OP at the end of 3 years. b. OP after the 45th payment. c. Estimate how many payments…

A: Outstanding payment is the balance amount of debt, left after a certain period. The outstanding…

Q: What is the realized balance from a eriodic payment of 100,000 dinars to paid at the end of every 6…

A: We need to use future value of ordinary annuity formula to solve this problem Future value…

Q: A debt can be repaid by payments of $3125.00 today, $2770.00 in two and half years and $4600.00 in…

A: To Find: Single Payment to settle debt four years from now

Q: A present obligation amounting to ₱150,000 is to be repaid for 4 years at a rate of 12% per year.…

A: The answer for the opinion based question and relevant explanation are presented hereunder : Present…

Q: A debt of $1908 with interest at 6.3% compounded annually is to be repaid by equal payments at the…

A: Solution:- When a loan is taken, it is to be repaid in lump sum or in installments. If it is paid in…

Q: What is the interest rate if the principal amount is P2,000.00 and the interest is P500.00 for 6…

A: Interest = Principal * Rate * Time where, Interest = P500.00 Principal = P2,000.00 Time = 6 months =…

Q: A loan of R5000 is to be amortised over thirteen years by regular equal quarterly payments starting…

A: Amortization is the process of gradually paying off a debt or loan through regular, scheduled…

Q: ebt of P20,000 with interest at the rate of 15% compounded semi-annually is to be amortized by 3…

A: Equal periodic payments are paid for the loans and these equal payments carry the payment for loans…

Q: 5 years from now payments: $500 of 6 years. What est rate of 6% cc

A: in this we have to find out present value of all and future value of remaining.

Q: A loan of P500, 000 is to be amortized with quarterly payments for five years at the rate of…

A: Loans are paid in equal periodic payments and these periodic payments carry payment for interest and…

Q: Deposit of ₱1,000 is made at the end of the first year and increases by ₱ 500 for the next following…

A: So in the question asked, We will first list down the important details provided 1) Deposit Amount =…

Q: ou borrow 50000 for a term o 14 years at a fixed interest rate of 8% per annum. The loan is to be…

A: Loans are paid by equal monthly payments that carry the payment for interest and payment for loan…

Q: A financial obligation requires payments of $200 today, $250 in three years, and $550 in five years.…

A: The concept of TVM states that the money earned earlier has more value than the same amount earned…

Q: A loan of 200000€ will be repaid with %12 nominal interest. convertible over 3 months. the debt is…

A: Loan Amount is 200,000 Nominal interest rate convertible over 3 months is 12% Time period is 72…

Q: A debt of ₱10,000 with interest rate of 20% compounded semiannually is to be amortised by 5 equal…

A: Formula for present value :…

Q: A debt of 4,400 with interest at 2.5% payable semi annually will be discharged by payment of 600 at…

A: Given information: Debt : 4,400 Interest rate : 2.5% Payments : 600

Q: A debt of $5,000.00 is to be paid off with 6 equal semi-annual payments. If the interest rate is 15%…

A: The annuity refers to the equal payments that can be expected from an investment or it can also…

Q: Ferris Bueller has borrowed from the Ferrari Bank at a rate of 7% and will repay the laon with…

A: The current worth of the cash flows or an asset after discounting is termed as the present value.

Q: A debt is amortized for 4 years by a series of payments that decreases annually by P 500, the first…

A: Time period = 4 years First payment of lease = P 5,000 Annual decrease = P500 Interest rate = 5%

Q: If a loan of ₱45,000 will amount to ₱76,400 when converted quarterly for 3.25 years what interest…

A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…

Q: Engr Dalay is required to pay 66500 pesos at the end of 30 days of 68000 pesos at the end of 80…

A: The initial amount of payment which will take place after 30 days is 66,500 pesos but after another…

Q: $2350 was borrowed 4-years ago, is to be settled by following payments: $1175 today, $1030 in…

A: The objective of the question is to find out the balance of the loan before the following payments…

Q: A $700,000 loan was received on Nov. 30, 2022, with annual interest at 9.5%, C/M, requires monthly,…

A: A loan is a financial arrangement in which one or more people, companies, or other entities lend…

Q: A loan payment of $3200 was due 3 months ago, and another payment of $1800 is due in 6 months from…

A: Present value computes the existing value of future benefits by discounting future worth with a…

Q: A loan of P 58,000 with interest at 20% compounded quarterly, will be paid by equal periodic…

A: Quarterly Compounding: It is interest amount that is earned quarterly on an account. It mean…

Q: A debt can be paid by payments of $1000 scheduled today, $500 schedule in two years, $2000 scheduled…

A: To settle the debt 4 years from now, a single payment of approximately $4291.39 would be required.…

Q: A loan is to be amortized quarterly at P167,900.00 for three years. Find the outstanding principal…

A: Loan amount = L = P 167900 n = 3 years = 12 quarterly payments r = 8% per annum = 2% quarterly Let Q…

Q: 160000 TL loan is being repaid by installments of 2250 TL at the end of each month for as long as…

A: Loan financing refers to the arrangement of a loan repayment system. It involves the repayment of a…

Q: 0 is to be amortized by equal payments at the end of every quarter for 2 years. If the interest…

A: Debt refers to the desired sum of money borrowed by an individual or an entity through any financial…

Q: 7. An amount of 24,000php is borrowed for 15 years at a rate of 2%. Make an amortization schedule…

A: Using PMT function in excel PMT (rate,nper,pv,[fv]) Amortization schedule

Q: $2350 was borrowed 4-years ago, is to be settled by following payments: $1175 today, $1030 in…

A: To solve this question, we need to calculate the balance of the loan at different points in time,…

Q: A loan of £50, 000 is repayable by equal payments at the end of each of the next 5 years. Interest…

A: A sum of money payable as one of the numerous equal payments over a certain period of time is…

Q: A P28,000 debt at 15% interest compounded semi-annually is to be amortized at P2,250 every 6 months.…

A: An amortization table is a table that shows the periodic payments, interest, principal, and…

Concept explainers

Mortgages

A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.

Mortgage

The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.

Question

P12,000 is borrowed now at 12% interest. The first payment is P4000 and is made 3 years
from now. The balance of the debt immediately after the payment is;

Expert Solution

This question has been solved!

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

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 2 images

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

A debt is amortized for 4 years by a series of payments that decreases annually by ₱ 500, the firstpayment being ₱ 5,000. What is the equivalent future worth of the debt @ 5 % compoundedannually?
1. A P15,000 loan at 12% compounded quarterly is to be amortized every 3 months for 1 ½ years. Find the quarterly payments and construct the amortization schedule.
A loan of £10,000 is repaid in 10 annual instalments of £1,300, with the first repayment due in one year. What is the interest rate? % Enter a percentage correct to 1 decimal place.
An individual borrows £15,000 to be repaid in 10 years with monthly payments at the end of each month. The initial interest rate applied to the loan is 3% p.a. effective. a)Find the monthly repayment P1
A loan is to be amortized by equal payments of P500.00 each at the end of every six months for ten years. Interest is based on 7% compounded semiannually. What is the outstanding debt after eight years? Select one: a. P1,657.88 O b. No answer c. P2,034.29 d. P1,836.54 e. P1,976.87
3. A debt of P3,500 is to be amortized by 6 equal semiannual payments with interest at 6%compounded semiannually. What is the total interest to be paid during the term of the loan?
A loan of 20,000 is to be repaid as follows. Payments of p are to be made at the end of each month for 96 months and a balloon payment of 5,400 is to be made at the end of the 96th month as well. If the nominal interest rate convertible monthly is 10%, what is the prinicipal componnent of the 19th payment?
A deposit of $1300 will be after 3 years $1639. If the interest is compounded annually, what is the annual interest rate: a. 10.25% b. 8.02% c. 6% d. 8.5%
what amount of interest will be charged if 7000 is borrowed for 9 months at a simple rate of interests of 9.5% per annum
A debt is amortized for 4 years by a series of payments that decreases annually by ₱ 500, the firstpayment being ₱ 5,000. What is the equivalent present worth of the debt @ 5 % compoundedannually?
5. A debt is amortized for 4 years by a series of payments that decreases annually by P 500, the first payment being P 5,000. What is the equivalent future worth of the debt @5 % compounded annually?
A loan of P8,000 will be amortized by payments at the end of each quarter for 8 years and 9 months. If money is worth 5% compounded quarterl, find the following: a. the periodic payment b. the remaining liability after the 30th рayment