Plutus must make an P8,500 quarterly tax paymentto the Bureau of Internal Revenue. He decides toborrow money from his company, Plutus’ Financingrepay the loan in 90 days. Given an 8.5% rate,compute for the (a) simple interest; and (b)compound interest. Use a 365-day year.and

The amount earned or paid by lending or borrowing money is referred to as interest. When calculating…

Answered: Plutus must make an P8,500 quarterly…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Jefferson qualifies for an income- adjusted monthly payment of $455. If Jefferson has a subsidized student loan of $47,000 in an annual interest rate of 4% (compounded monthly), how many months are required to repay the loan? (Round your answer to the nearest month)
On January 1, 2013, your brother's business obtained a 30-year amortized mortgage loan for $350,000 at a nominal annual rate of 7.35%, with 360 end-of-month payments. The firm can deduct the interest paid for tax purposes. What will the interest tax deduction be for 2013.Calculate using at least 4 decimal points and round your answer to two decimal places. For example, if your answer is $345.667 round as 345.67 and if your answer is .05718 or 5.718% round as 5.72 in the answer box provided. Group of answer choices
On January 1, 2013, your brother's business obtained a 30-year amortized mortgage loan for $350,000 at a nominal annual rate of 7.35%, with 360 end-of-month payments. The firm can deduct the interest paid for tax purposes. What will the interest tax deduction be for 2017?Calculate using at least 4 decimal points and round your answer to two decimal places. For example, if your answer is $345.667 round as 345.67 and if your answer is .05718 or 5.718% round as 5.72 in the answer box provided. $22,769.25 $26,686.54 $24,483.06 $20,076.11 $19,096.79
Rih took out a 4-year amortized loan for $15,000 at 10% to pay her tuition at a music conservatory. After 1 year, she refinanced the unpaid balance of $11,791 at a 5% interest rate. Find the monthly payments on the new loan; and the total amount saved on interest by refinancing. The monthly payments on the original loan are $ (Type an integer or a decimal.) The monthly payments on the new loan are $ (Round to the nearest cent as needed.) The total amount saved on interest by refinancing is $
Travis currently owes $8,000 to a friend who is charging him interest of 2.70% p.m. He is required to settle the loan with two equal payments, one today and the other in five months. Calculate the size of the payments using five months as the focal date.
Jefferson qualifies for an income-adjusted monthly payment of $475. If Jefferson has a subsidized student loan of $48,000 at an annual interest rate of 4% (compounded monthly), how many months are required to repay the loan? (Round your answer up to the nearest month.)
Your brother's business obtained a 30-year amortized mortgage loan for $175,000 at a nominal annual rate of 7.4%, with 360 end-of-month payments. The firm can deduct the interest paid for tax purposes. What will the interest tax deduction be for Year 1? a. $1,645.03 b. $14,539.98 c. $12,950.00 d. $11,825.05 e. $12,894.95
Jeffery Wei received a 7-year non-subsidized student loan of $31,000 at an annual interest rate of 5.9%. What are Jeffery's monthly loan payments for this loan after he graduates in 4 years? (Round your answer to the nearest cent.)
Gabrielle secured a 3-year car loan at 5.90% compounded annually that required him to make payments of $882.53 at the beginning of each month. Calculate the cost of the car if he made a downpayment of $2,250. Round to the nearest cent
Holden borrows $209,433 from a financial institution with equal end-of-year payments of $24,600. If the annual interest rate is 10%, how long will it take for him to pay the loan and its interest back? 10 years 15 years 20 years 25 years
Peyton received a 10-year subsidized student loan of $21,000 at an annual interest rate of 4.1%. Assuming Peyton graduates in 4 years, determine Peyton's monthly payment on the loan. (Round your answer to the nearest cent.)
Answer each of the following independent questions. Ignore personal income taxes. Required: 1. Suppose you invest $4,000 in an account bearing interest at the rate of 12 percent per year. Complete the table to show how your accumulation grows each year to equal $7,896.00 after six years. 2. You have estimated that your educational expenses over the next three years will be $14,500 per year. Your account bears interest at 9 percent per year. Complete the table given below to show that $36,699.50 is the amount you need to fund your educational expenses. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Suppose you invest $4,000 in an account bearing interest at the rate of 12 percent per year. Complete the table to show how your accumulation grows each year to equal $7,896.00 after six years. (Round your answers to 2 decimal places.) Year Beginning Balance Interest 1 2 3 4 5 6 End Balance

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Plutus must make an P8,500 quarterly tax payment to the Bureau of Internal Revenue. He decides to borrow money from his company, Plutus’ Financing and repay the loan in 90 days. Given an 8.5% rate, compute for the (a) simple interest; and (b) compound interest. Use a 365-day year.