Yonnie lent 10,000 today each to Junel, JV and Jhom. Junel promised to make 8 payments of P (principal + interest) every 2 months (bi- monthly) for one and a half year with the first payment to be made 2 months from now. Assume that money is worth 7.5% payable semi-annually

Yonnie lent 10,000 today each to Junel, JV and Jhom. Junel promised to make 8 payments of P (principal + interest) every 2 months (bi- monthly) for one and a half year with the first payment to be made 2 months from now. Assume that money is worth 7.5% payable semi-annually

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 5Q: If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the...

See similar textbooks

Related questions

Q: A loan of amount 10,000 at a nominal annual interest rate of 12% compounded monthly is repaid by 6…

A: We are going to use 2 formula to determine X. The PV of first 3 payments and last 3 payments should…

Q: A real estate company wants to borrow $6.5 million to in a project. The interest rate for the…

A: The Present Value of Ordinary Annuity refers to the concept which gives out the discounted or…

Q: Complete the pro-forma income statement below: (Round to the nearest dollar.) Pro-Forma Income…

A: Pro-forma Income Statement is the adjusted Income Statement which shows newly created Income…

Q: 1) you open an Account to house. The Acce SAVE for ecount has an APR of 1.27 Compounded quarterly.…

A: The money's time worth concept reveals that any sum of money is worth more currently than the worth…

Q: 1. Company Yoyo currently pays out a dividend of £2 per share. It reinvests 1/3 of earnings in…

A: Growth rate g = Retention ratio * Return on Investment ( ROI ) Thus, g = 13×15% g = 5% Current…

Q: Default Pay Yourself First Interest occurs when a borrower is unable to meet the obligation of debt…

A: In this case we are given different terms related to finance in general and to use of borrowed money…

Q: The yield-to-maturity of a 2-year treasury bond is 3.5%; the yield-to-maturity of a 1-year treasury…

A: Term premium is the extra yield that a long-term investor expects for holding onto bonds with longer…

Q: a. Test the Kule of 72 by co investment that grows at the indicated fixed rates compounded annually.…

A: Please see the answers in the table. Annual Interest Rate in % 1 2 6 8 10 12 Predicted doubling…

Q: Explain this line more, please: "=V1V0×100= 418.91×N455.82×N×100=91.90251" N is unkown (as far as…

A: Portfolio: It represents a collection of financial securities such as bonds, stocks, commodities,…

Q: You are thinking of purchasing a house. The house costs $350,000. You have $50,000 in cash that you…

Q: The managing partner, Karen Thompson, has asked you to do some quick calculations for her. She wants…

A: A bond indicates the debt instrument that obliges its issuer to repay the par value along with the…

Q: ALLSTON Corporation’s bonds have 15 years remaining to maturity and these bonds have $1,000 par…

A: Please note that only the first question is answered as the second question has conflicting coupon…

Q: Mary, a finance student at Amity student, holds a portfolio which consists three stocks (one each)…

A: We have a portfolio comprising of one stock of each of A, B and C. We have to find the expected…

Q: Which of the following accounts are understated if the company fails to make an adjusting entry to…

A: There are many terms in accounting, such as outstanding expenses, outstanding revenue, prepaid…

Q: 6. After comparing your bank statement, canceled checks, and checkbook register, complete the…

A: Ideally cash balance as per cashbook and bank balance as per bank statement must reconcile with each…

Q: What is the difference between the two companies on this ratio? What is a plausible explanation as…

A: Return on Assets(ROA) is a financial ratio which describe that how a company efficiently used its…

Q: After finishing your degree, you decide to go on a post-graduation celebration trip to the UK. You…

A: Exchange Rate: It represents the rate at which a currency of one country will be exchanged for the…

Q: A loan of 1,000,000 is to be repaid by ten annual payments beginning one year after the loan is…

A: A borrower has to make annual interest payment to service the loan and entire repayment at the end…

Q: Pete Morton is planning to go to graduate school in a program of study that will take three years.…

A: The Present Value of Ordinary Annuity refers to the concept which gives out the discounted or…

Q: Rhea lent P 100,000 today each to Perlyn, Kat and Regine under the following terms. (4) Kat agreed…

A: Loans are provided by banks and financial institutions as it is a source of income for them. Banks…

Q: Hello Tutor, kindly include here the steps and solutions please. Not just the bare answer. I need…

A: Annuity due means that that the payments or the deposits are being made at the start of each period.…

Q: If you invest 73000 $ in a project which yields an annual return of 13500$ ...how many years will…

A: The Payback Period is one of the traditional techniques of capital budgeting that does not take into…

Q: What is the company's total debt? $ What is the amount of total liabilities and equity that appears…

A: Please note that only the first 4 question can be solved under the Answering Guidelines. The balance…

Q: The McGregor Whisky Company is proposing to market diet scotch. The product will first be…

A: NPV is calculated to determine whether a project is profitable in terms of initial investment and…

Q: This is not clear please make it clear in coherent writing with calculations provided

A: Treasury Bill: Treasury bills also known as T-Bills represent short-term debt instruments issued by…

Q: You deposit $1,000 today, $3,000 two years from now, and $5,000 five years from now. How much money…

A: As per the money's time worth principle, since any sum of money can be invested today and grown, its…

Q: Describe the various emotions you felt as you played the game. How did your emotions impact your…

A: Data given:

Q: First, ignore the fact that rrf depends on whether you are long or short the risk-free asset.…

A: A tangency portfolio is a portfolio in which shares of the assets in a mutual fund are determined by…

Q: What is the 95% for a portfolio consisting of both investments A and B? (Hint: write out the…

A: Value at risk is a metric used in finance to assess the risk of an investment. VaR is a statistical…

Q: Suppose that a bank has agreed to the following terms of an interest rate swap: - The notional…

A: Bond-price valuation method: Finding a bond's fair market value is known as bond valuation. The…

Q: Two partners have decided to acquire a more extensivemanufacturing facility. One of the partners…

A: There are two offers to conduct a leverage buyout of the factory. Both the offers will translate…

Q: How to solve this without using excel?

A: Present Value: It represents the current value of a future stream of cash flow. The present value…

Q: An investment of $70,000 yields a net annual income of $15,000 for 6 years. What is the internal…

Q: 2. From the College Scorecard, median annual cost of attending college is $12,871. Median salary for…

A: The concept of money's time value reveals that any sum of money is worth more currently than its…

Q: Ken borrowed PHP 1,000 from Coco-me-Loan and promises to pay this with level monthly amortization…

A: Monthly payments refer to the payment made every month including interest and principal amount…

Q: Use the range names in formulas to find the expected salary increase for each of the respondents.…

A: Salary Expenses: Salary expenses are those related to the fixed wage that employees receive. The…

Q: We observe the following treasury yields on a particular day: one-year 1.50%, two-year 2.25%, and…

A: Term yield is the excess return that a long-term bond holder expects rather than owning a series of…

Q: Assume that an invoice for P150,000 with terms 2/10, n/30, is to be paid within the discount period…

A: We are assuming a 365 days a year period. As per the trade discount convention, the terms of invoice…

Q: A stock averaged 3%, 18%, -24%, and 16% in 4 years. What was its variance in the observed period?…

A: You have specifically asked #5, hence only Question 5 is solved. For a time series of return,…

Q: what is the maximum amount you would pay for an asset that generates an income of $500,000 at the…

A: We have to find the cost of an annuity today. We have to necessarily find the PV of an annuity due.

Q: Show Solution. Topic: Simple Differed Annuity Find the present value of a deferred annuity of…

A: Present value of Annuity: How much cash would be required today to cover a series of future annuity…

Q: (a) An annuity immediate has semiannual payments of P 10,000 for 10 years at a rate of 6% convert-…

A: In case of an immediate annuity, the periodical payments start immediately, and the first payment is…

Q: QUESTION 2 Over the past five years, a stock produced returns of 15.5%, -10.5%, 21.45%, 13.5%, and…

A: Standard deviation of a stock is the risk of that stock. We can determine the standard deviation of…

Q: An annuity immediate has quarterly payments of P 5,000 for 6 years at a rate of 4% convertible…

Q: If you borrow $9,000 with an interest rate of 5 percent, to be repaid in five equal yearly payments…

A: The Present Value of Ordinary Annuity refers to the concept which gives out the discounted or…

Q: Managers may sometimes be criticized for being overly conservative. If a firm does not borrow as…

A: Managers are sometimes criticized for being overly conservative when it comes to borrowing, which…

Q: The company Bacall has forecasted Sales of 11 Million and an operating income of 1Million for the…

A: In this question we will be estimating the Price to earning ratio i.e. (P.E ratio)

Q: weighted duration b. The weighted duration of liabilities c. The duration gap a. tion of assets

A: “Since you have posted a question with multiple sub parts, we willprovide the solution only to the…

Q: The annual revenue, expenses, and depreciation for a company are $130,000; 32,000; and $11,000,…

A: Given: Annual revenue =$130,000 Expenses = $32,000 Depreciation = $11,000 Tax rate = 23%

Q: Lia spent $140 on shoes. This was $50 less than twice what she spent for a skirt. How much was the…

A: Let x be the cost of the skirt. Twice the cost of the skirt is 2x. The shoes cost $50 less than…

Question

Determine P . Disregard last 2 payments in the diagram

1/20
at
Pat
R
at
2/20 3/20 4/20
Pat
at
RROTA
P
ļ
5/20 6/20 7/20
20:
R
ată
P
Q Q
R
P
Q
10/20 11/20 12/20 1/20
R
P
4/20 5/20
6/20
RP
P
7/20

Yonnie lent 10,000 today each to Junel, JV and
Jhom. Junel promised to make 8 payments of P
(principal + interest) every 2 months (bi-
monthly) for one and a half year with the first
payment to be made 2 months from now. Assume
that money is worth 7.5% payable semi-annually

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, finance and related others by exploring similar questions and additional content below.

Similar questions

If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?
Jason's loan for $8500.00 is repaid by equal payments of $525.00 that are made at the end of every month. If his interest is 11% compounded semi-annually, how much will be paid out of pocket (in total) to repay the loan plus interest?
Prisha received a loan of $8,100 at 5.25% compounded monthly. He settled the loan by making periodic payments at the end of every three months for 6 years, with the first payment made 3 years and 3 months from now. What was the size of the periodic payments? $ 0.00 Round to the nearest cent
Akbar has borrowed $48,000 today and agreed to repay it in 5 years with monthly payments at the beginning of every month starting today (The first payment is due today). Calculate the size of the payments if money is worth 2.6% p.a. compounding quarterly.
adam made an investment of $33,000. The investment pays 7.75% p.a. compounded quarterly. He will be receiving equal monthly payments at the beginning of the month, into perpetuity. The first payment the investment makes to Adam will begin in exactly three years from today. What is the monthly payment Adam will be receiving?
William got a second loan for 78,000 dlls to be payable in 5 years with interest rate of 7.5 percent per year compounded montly. He pays all montlhy payments on time. What would the payoff be at the end of the 13th month?
Ma. Nochna Pula borrowed $10,000 at 6% annual compound interest. She agreed to repay the loan with five equal annual payments at end of each year. How much is the annual payment?
Piotr takes out a loan for $3,159.00. The term of the loan is 10 years, and he will make monthly payments. The interest rate on the loan is 7.775% compounded bi-weekly. a) What is the effective interest rate per payment period? b) If Piotr is going to repay the loan with level payments, what is the monthly payment amount? C) Fill in the first 3 rows of the loan amortization table.
AtoHayle borrowed birr 200,000 at 6% compounded monthly for 30 years, and agree to repay the loan in 360 equal monthly installments including all interests due. Suppose that immediately after the 24th payment AtoHayle decides to increase the monthly payment by birr 600 per month. How many more payments must be made?How much would this save over the life of the loan?How much is the total payment made over the entire period?How much interest is paid over the entire period?
Kyle borrowed P100,000 to be paid in 10 years, and established a sinkingfund to provide for the payment of this obligation. The deposits with thefund will be made at the end of every six months. If money is worth 8%compounded semi-annually, what should be the amount of each deposit.
Benjamin borrows $50,000 from a lending institution for building a house. The lending institution charges 8% per year nominal interest rate compounded daily. If Benjamin intends to pay back the loan in 10 years, what would be his monthly payment? Use the condition that, for daily compounding, M = 30.5 days.
ABC bank loans $250,000 to Yossarian to purchase a new home. Yossarian will repay the note in equal monthly payments over a period of 30 years. The interest rate is 12 percent. Required: If the monthly payment is $2,571.53, how much of the first payment is interest expense, and how much is principal repayment?\