Answered: You sign a simpie discount promissory…

You sign a simpie discount promissory note for $7,000 at a discount rate of 5%, for 30 months. What are the proceeds? O $3,500 $7,875 $875 O $6,125

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 16Q: Jain Enterprises honors a short-term note payable. Principal on the note is $425,000, with an annual...

See similar textbooks

Related questions

Q: You receive a credit card application from Shady Banks Savings and Loan offering an introductory…

A: Basically there are two interest rates. We will first find the future value at the of 6th month…

Q: An interest-bearing promissory note for $5,500 is due in 180 days with simple interest at 4.75% p.a.…

A: Here, Face value = 5,500 Interest rate = 4.75% Discount rate = 6.75% Time to maturity = 180 days…

Q: TORR, Inc. issues a $600,000, 9%, five-year note payable on January 1, 20X5. If the monthly payment…

A: Interest for first month = face value of the note payable x interest rate x no. of months/12 =…

Q: Jain Enterprises honors a short-term note payable. Principal on the note is $425,000, with an annual…

A: Journal:Journal is the method of recording monetary business transactions in chronological order. It…

Q: Your company has been offered credit terms on its purchases of 4/30, net 90 days. What will be the…

A: The an agreement to purchase products and/or services on credit rather than making immediate cash or…

Q: How much of the financial goal comes from deposits and how much comes from interest?

A: Number of periods = 3 * 12 = 36 Monthly rate = 7.5% / 12 = 0.625% Future value = Annuity * [(1 +…

Q: A school service van is available for purchase at P23,000 bimonthly. The first payment is due at the…

A: Bimonthly payment = P23000 Interest rate = 14% Bimonthly interest rate = 14%/6 = 2.33333333333%…

Q: You sign a simple discount promissory note for $7,000 at a discount rate of 7%, for 24 months. What…

A: Discount = Amount*Interest rate*Time period/12 Proceeds= Principal Amount- Discount

Q: Acouple who borrow #90,000 tor 20 years at 8.4% Compounded monthly must make monthly payment's of…

A: Annuity refers to series of equalized payments either paid or received for constant period of time.…

Q: A £12,000 T-bill is purchased at a 4.05% discount rate for 40 weeks. Find the maturity value of the…

A: t bills are sold at discount to par is face value equals to its maturity value.

Q: Carla Vista Co. receives a $60,400, 6-year note bearing interest of 7% (paid annually) from a…

A: Present value of the note = Present value of principal + Present value of interest payments where,…

Q: An electric cooperative charges 5% per month on any past due bills. If your bill of Php 4215.25 bill…

A: Monthly interest rate (r) = 5% Due bill (P) = Php 4215.25 Period (n) = 6 Months

Q: A school service van is available for purchase at ₱23,000 bimonthly. The first payment is due at the…

A: Bimonthly payment (B) = ₱23000 r = 14% per annum = 14/6 % bimonthly = 2.33% bimonthly n = Number of…

Q: What are the proceeds (in $)?

A: A promissory note is a written form in which one party promises ta pay to other party for some…

Q: Find the discount and proceeds on a $3,240 face-value note for six months if the discount rate is…

A: Net Proceeds: It is the amount received by an individual after deducting a discount and expenses.

Q: nterest , a company that you regularly do business with, gives you a $11,000 note. The note is due…

Q: ur customers has just made a purchase in the amount of $28,000. You have agreed to payments of $590…

A: The time period to pay the loan will depends on the interest rate and compounding of loan and…

Q: One of your customers has just made a purchase in the amount of $26,400. You have agreed to payments…

A: A loan is a debt amount borrowed by one person from another person at a predetermined financial…

Q: You purchase a washing machine and dryer for P37,500. You pay 20% down and agree to repay the…

A: Given, Price of washing Machine = P 37,500 Down payment = P 37,500*20% = 7500 Interest rate = 8%…

Q: A simple discount rate has face value of php 28,000.00 and proceeds of php 27,000.00. find the…

A: The question is based on the concept of the time value of money, the discounted value is calculated…

Q: You receive a credit card application from Shady Banks Savings and Loan offering an introductory…

A: An interest is the amount that has to be paid or received for the period of unpaid balance.

Q: A $100,000 168-day T-bill is purchased for $99,004 on its issue date. What simple ate of interest…

A: Given: Face value =$100000Purchase value =$99004Days to maturity =168

Q: You own $35000 from the bank for 3 years at 8.50% annual interest, and you will make equal monthly…

A: Solved using Financial Calculator PV = 35,000 N = 3years * 12 = 36 I/Y = 8.5/12 = 0.708333 CPT PMT…

Q: Suppose you have $1,500 and plan to purchase a 5-year certificate of deposit (CD) that pays 7.6197%…

A: Investment (PV) = $ 1500 Period (t) = 5 Years Interest rate (r) = 7.6197%

Q: A credit card offers an introductory rate of 7% compounded monthly for the first six months,…

A: A credit card is a short-term credit facility provided by the banks to its customers. Interest is…

Q: You receive a credit card application from Shady Banks Savings and Loan offering an introductory…

A: Interest rate per month in first six months would be (0.6%÷12) = 0.05%. Interest rate per month in…

Q: An interest bearing promissory note for 90 days at 5.6% p.a. has a face value of $120,000. If the…

A: Step 1 Discount of trade bills is short-term financing or credit facility provided by bank in which…

Q: You receive a credit card application from Shady Banks Savings and Loan offering an introductory…

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: amount due

A: Formula to calculate amount due is: A = P(1+rt) Where A is the accrued amount, P is the principal…

Q: You purchase a TIP note with an original principal amount of $1,000,000 and a 10 percent annual…

A: The interest is an expected minimum return on the investment made by the investor. The coupon…

Q: A merchant sells a product on credit for S/ 50,000 and offers to pay it to a client in three bills…

A: 1. The face value of the bills. Particulars Bill 1 Bill 2 Bill 3 Credit sales amount…

Q: ABC bank loans $250,000 to Yossarian to purchase a new home. Yossarian will repay the note in equal…

A: Given the following information: Loan amount: $250,000 Number of years: 30 years Rate of interest:…

Q: tem can be purchased of ₱ 14 500, or for ₱ 3 800 down payment and installment payment of ₱ 1 030 for…

A: Monthly installments carry the payment of interest and principal amount.

Q: You receive a credit card application from Shady Banks Savings and Loan offering an introductory…

A: Compound interest is concept in which the interest part is added to principal when interest is…

Q: Luke got a $10,400.00 face-value note for 250 days with a discount rate of 8.5%. A) Find the…

A: The proceeds will be the face value less discount. The APR will be the annualized measure of the…

Q: Michael Jacobson signed a simple discount note with a face value of $ 8,400 at a discount rate of…

A: Discount Note is short-term debt instrument which is issued to raise short term debt for period less…

Q: A deposit of $50,000 is made into an account that pays 10% compounded semiannually. How much would…

A: Introduction: Amount which is deposited into an account now is referred to as present value. The…

Q: owns a note for 10,000 due in 3 years and 9 months. How much should a buyer pay now for the note…

A: Maturity period (F) = 10,000 Period = 3 Years and 9 Months' Period in quarters (n) = 15 Quarterly…

Q: A new flat television set worth ₱ 38 000 cash is also available on installment basis at ₱ 12 500 as…

A: Cash price of New TV is ₱ 38,000 Down payment is ₱ 12,500 Monthly Installments = 18months * ₱ 3,750…

Q: JAB Consulting received a promissory note of $13,500 at 7% simple interest for 15 months from one of…

A: Frist we need to calculate the maturity value of promissory note by using this equation. Maturity…

Q: On May 12, Scott Rinse accepted an $15,500, 14%, 90-day note for a time extension of a bill for…

A: The question is based on the concept of Financial Management.

Q: A sala set is offered for sale for a P50,000 down payment and P1,500 every 3 months for the balance…

A: Down payment (DP) = P 50,000 Quarterly payment (P) = P 1500 Number of monthly payments (n) = 24/3 =…

Q: JAB Consulting received a promissory note of $13,500 at 9% simple interest for 15 months from one of…

A: A promissory note refers to a legal instrument in which the promise is made in writing that the…

Question

Help me fast with detail explanation.

Definitely I will give Upvote.

You sign a simple discount promissory note for $7,000 at a discount rate of 5%, for
30 months. What are the proceeds?
O $3,500
O $7,875
$875
$6,125

Expert Solution

This question has been solved!

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

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

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

Jain Enterprises honors a short-term note payable. Principal on the note is $425,000, with an annual interest rate of 3.5%, due in 6 months. What journal entry is created when Jain honors the note?
You sign a simple discount promissory note for $7,000 at a discount rate of 7%, for 24 months. What are the proceeds (in $)?
You sign a simple discount promissory note for $7,000 at a discount rate of 3%, for 36 months.
You have asked Raider Bank for a $20,000 signature loan, where you will be charged 1% per month informs you that the terms of the loan requires you to make monthly payments. What is the Excel F your daily payments that will be drawn from your account automatically? 200/12 PUNTO 145 and 200001
On September 14, 2024 a note signed on February 3, 2024 matures for $8,000. The simple discount rate is 3.96% . What were the note's proceeds?
You decide to discount a$5250, 345-day note at 3% to your bank at a discount rate of 4.5% on day 210. What are the proceeds?
Select the correct answer and explain What is the discount to a promissory note with a face value of $ 27,350? Consider that it is negotiated with the 6.25% annual simple discount, five months before expiring. a. $ 701.25 b. $ 721.66 c. $ 680.00 d. $ 712.21
The interest charged on a $98000 note payable, at the rate of 6%, on a 4-month note would be $5880. $2940. $980. O $1960.
Hd.2. A note dated June 1, 1995, calls for the payment of $85,000 in 6 years. On March 15, 1998, the note is sold at a price that will yield the buyer 12%. How much is paid for the note?.
An individual purchased a 5-year, $10,000 promissory note with an interest rate of 4.5%/year compounded semiannually. How much did the note cost? (Round your answer to the nearest cent.)
The interest charged on a $350,000 note payable, at the rate of 6%, on a 60-day note would be Group of answer choices $21,000 $10,500 $5,250 $3,500
The interest on a $27000, 15%, 1-year note receivable is $31050. $228. $270. $4050.