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.
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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
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.
and](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F31fb9c23-f1f1-48b0-8643-6e265694da80%2F2df2720c-f838-43f6-9b31-5da0fe0e28ec%2F3egzc2v_processed.jpeg&w=3840&q=75)
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- A woman borrows $3000 at %9 compounded monthly, which is to be amortized over 3 years in equal monthly payments. For tax purposes, she needs to know the amount of interest paid during each year of the loan. Find the interest paid during the first year, the second year, and the third year of the loan. (Hint: Find the unpaid balance after 12 payments and after 24 payments. Also see example in your notes.)A woman borrows $6000 at 6% compounded monthly, which is to be amortized over 3 years in equal monthly payments. For tax purposes, she needs to know the amount of interest paid during each year of the loan. Find the interest paid during the first year, the second year, and the third year of the loan. [Hint: Find the unpaid balance after 12 payments and after 24 payments.] The interest paid during the first year is $ (Round to the nearest cent as needed.) The interest paid during the second year is $ (Round to the nearest cent as needed.) The interest paid during the third year is $ (Round to the nearest cent as needed.)Joy had a tax refund of 733.43 due. She was able to get her tax refund immediately by paying a finance charge of 43.08 What simple interest rate is Joy paying for this loan assuming the following are true? Assume 360 days in a year. a) The tax refund check would be available in 5 days. b) The tax refund check would be available in 10 days. c) The tax refund check would be available in 20 days.
- Please use microsoft excel for calculations.In June 2002, John an employee of Bank of America received a loan of $4.0 million to purchase an apartment. The interest on the mortgage loan is 8% and the applicable prescribed rate is 20%. John has paid seven mortgage instalments of $40,000 per month from the 1st of June to 31st December 2006 of which $26000 is interest and $14000 is principal. What is John’s charge to tax (per annum) on his loan for the period December 2002 to December 2004?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 2016. 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 $21,558.37 $28,001.11 $24,779.74 $22,797.36 $25,523.13
- 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 $19,096.79Mr. Nina borrows $425,000 from the bank at 3.5% per year interest over a 30-year period. He can make a monthly month-end payment of $1,400 and would like to make a balloon payment at the end of the 30-year period. What would be the size of the balloon payment? $218,058 $323,069 $433,197 $548,512 Please show how to work this out in Excel if possible?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
- Marilyn Ho borrowed $24,000 from Stewart Financial Enterprises. She was required to make sixteen equal payments of principal. These were to be made annually with the first payment due exactly one year after she received the $24,000. Ms. Ho also had to make annual payments of interest to the loan holder at an annual effective rate of 8.5%. Immediately after the loan is made, Brady Investment Corporation purchases the right to receive all of Ms. Ho's payments from Stewart Financial Enterprises. The price paid by Brady Investment Corporation resulted in Brady having a 7% annual yield on their sixteen-year investment. Find the price that Brady Investment Corporation paid Stewart Financial Enterprises.ned livJonathan wishes to borrow $180 000 from a commercial bank. He was told that the loan would be amortized over five years and that payment could be made at the beginning or at the end of each year. Please assist Jonathan by answering the following questions. a. Explain to Jonathan, what is the purpose of a loan amortization schedule? b. Jonathan borrows $180 000 at 9% per annum for five years. The loan is repayable in five equal instalments at the beginning of the year. What is the annual payment?1. Cameron designates 10% of his monthly earnings as charitable contributions. After deducting this amount, he deposits 5% of the remaining amount into a money market account earning 2%. If Cameron's monthly earnings are $4,800 what amount interest will he earn on his deposit each month? 2. Find the maturity value for a loan on $4,225 at 8% made on March 5 and due on May 5 of the same year. Assume a 365-day year. 3. Republic Bank advertises their interest rates at 7 % %. You decide to apply for a loan in the amount of $9,000 for 90 days. The bank grants your loan and the loan officer tells you that there is a document preparation fee of $150 that needs to be paid at the time you sign the documents for the loan. Find the APR. Assume a 360-day year. 4. You took out a loan of $5,000 on May 2 and went back on June 15 to make a payment of $1,200. The loan was at 4% for 1 year. What was your remaining balance after making that payment?