Drill Problem 11-6 (Algo) [LU 11-2 (1, 2)]Solve for maturity value, discount period, bank discount, and proceeds. Assume a bank discount rate of 7%. Use the ordinary interestmethod. (Use Days in a year table.)Note: Do not round intermediate calculations. Round your final answers to the nearest cent.Face value(principal)Rate ofinterestLength ofnoteMaturityvalue$29,5008%75 daysDate ofnoteJanuary 12Date notediscountedFebruary 3DiscountperiodBank discountProceedsExact days-in-a-year calendar (excluding leap year)*Day ofmonth31 January 28 February 31 March30 April31 May30 June31 July31 August30 September 31 October30 November 31 December11326091121152182213244274305335223361921221531832142452753063363334629312315418421524627630733744356394124155185216247277308338553664951251561862172482783093396637659612615718721824927931034077386697127158188219250280311341883967981281591892202512813123429940689912916019022125228231334310104169100130161191222253283314344111142701011311621922232542843153451212437110213216319322425528531634613134472103133164194225256286317347141445731041341651952262572873183481515467410513516619622725828831934916164775106136167197228259289320350171748761071371681982292602903213511818497710813816919923026129132235219195078109139170200231262292323353202051791101401712012322632933243542121528011114117220223326429432535522225381112142173203234265295326356232354821131431742042352662963273572424558311414417520523626729732835825255684115145176206237268298329359262657851161461772072382692993303602727588611714717820823927030033136128285987118148179209240271301332362292988119149180210241272302333363303089120150181211242273303334364313190151212243304365

Ordinary interest rate is the method of calculating the interest charged on the loan, based on a 360…

Answered: Problem 11- (Alg Solve for maturity…

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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A B E 2 Determine the maturity date and compute interest for each note. 3 Days to be used per year 360 days 4 Note Contract Date Principal Interest Rate Period of Note (Term) 6. 1 1-Mar $10,000 6% 60 days 7 2 15-May 15,000 8% 90 days 8 3 20-Oct 8,000 4% 45 days 9. 10 Required: 11 12 (Use cells A5 to F8 from the given information to complete this question.) 13 14 Note Contract Date Maturity Date Interest Expense 15 16 17 3 18
Compute bank discount using (A) ordinary interest, (B) proceeds, and (C) effective interest rate to the nearest hundredth. Do not round denominator in your calculation. Face Value Discount Rate Time in Days $9,000 14% 110
Instructions: Fill in the missing information. 1. Missing Dates: Encode the date in this format: mm/dd 2. Monetary values: Round-off the monetary figures to two decimal places Use 360 days=1 year in computing for interest Principal Interest Rate Date of Note Term Maturity Date Maturity Value Date of Discounting Discount Period Discount Rate Disount 55,000 13.50% 06/17 69 days ? ? 07/22 (?) days 13.70% ? Net proceeds Accrued Interest Carrying Amount Gain/Loss on Discounting ? ? ? ? Thank you for helping me.
Maturity Dates of Notes PayableDetermine the maturity date and compute the interest for each of the following notes payable with add-on interest:Use 360 days for calculations and round to the nearest dollar. Date of note Principal Interest Rate (%) Term a. August 5 $17,000 8% 120 days b. May 10 10,400 7% 90 days c. October 20 14,000 9% 60days d. July 6 6,500 10% 75 days e. September 15 15,500 8% 75 days For the maturity date, select the appropriate month using the drop-down menu and enter the correct day next to the month using the fill-in the blank answer box. Maturity Date Interest a. Answer Answer Answer b. Answer Answer Answer c. Answer Answer Answer d. Answer Answer Answer e. Answer Answer Answer
25. The following interest-bearing promissory note was discounted at a bank by the payee before maturity. Use the ordinary interest method, 360 days, to calculate the missing information. (Round dollars to the nearest cent.) FaceValue InterestRate (%) Date ofNote Term ofNote (days) MaturityDate MaturityValue(in $) $2,200 12 Mar. 7 80 $ Date ofDiscount DiscountPeriod (days) DiscountRate (%) Proceeds(in $) Apr. 15 19 $
Compute bank discount using (A) ordinary interest, (B) proceeds, and (C) effective interest rate to nearest hundredth. Do not round denominator in your calculation. Face Value Discount Rate Time in Days $12,000 13% 120
Please solve with Explanation and do not Give image format
Using ordinary interest, 360 days, calculate the missing information for the simple discount note. (Round dollars to the nearest cent.) Face Discount Value Rate (%) Date of Note Term (days) Maturity Date Bank Discount (in $) Proceeds (in $) $16,700 10 June 8 70 --Select-- O $ $ Need Help? Read It
Chapter 8 - Simple Interest Applications Compute the maturity value. A eight month, 13.18%, promissory note for $704 is issued March 17, 2012. (The dates must be answered in the following format: January 1, 2012) (Do not include the $ sign when entering money values.) Legal due date = Number of days = Maturity value = Check
Problem: (Computing the Proceeds from Discounted Notes) Determine the proceeds from each of the following discounted customer notes: a. An P8,000, 60-day, non-interest-bearing note discounted after 15 days at 12% b. A P12,000, 12% 60 day note discounted after 30 days at 14% c. A P6,000, 10% 90-day note discounted after 30 days at 12% d. A P10,000, 12% 120-day note discounted after 45 days at 15%. Please answer the questions above with correct solution and answer. Thank you.
Check my work Exercise 9-4 (Algo) Accounting for note payable LO P1 Sylvestor Systems borrows $104,000 cash on May 15 by slgning a 30-day, 5%, $104,000 note. 1. On what date does this note mature? 2-a. Prepare the entry to record Issuance of the note. 2-b. First, complete the table below to calculate the Interest expense at maturity. Use those calculated values to prepare your entry to record payment of the note at maturity. Complete this question by entering your answers In the tabs below. Required 2B Interest at Maturity Required 2B General Journal Required 1 Required 2A On what date does this note mature? On what date does this note mature? K Required Required 2A Fook Air
Accrued Interest PayableCompute the interest accrued on each of the following notes payable owed by Northland, Inc., on December 31:Use 360 days for calculations and round to the nearest dollar. Lender Date of Note Principal Interest Rate (%) Term Maple 11/21 $18,000 11 120 days Wyman 12/13 14,000 8 90 days Nahn 12/10 16,000 12 60 days Lender Accrued Interest Maple Answer Wyman Answer Nahn Answer

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