Homework Answers
F-6
Total Amount due = $25000 x (1.03)4 = $28137
F-7
Present Value = $25000 / (1.04)3 = $55,560
Answer is $55,559
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Question F-6 A company borrows $25,000 from a bank, with an interest rate of 3%. The...
A company borrows $25,000 from a bank, with an interest rate of 3%. The terms of...
A company borrows $25,000 from a bank, with an interest rate of 3%. The terms of borrowing provide that interest accrues based on annual compounding, and the principle and interest are due in full 4 years from the date of borrowing. What is the total amount due on this borrowing at the due date?
A company borrows $25,000 from a bank, with an interest rate of 3%. The terms of...
A company borrows $25,000 from a bank, with an interest rate of 3%. The terms of borrowing provide that interest accrues based on annual compounding, and the principle and interest are due in full 4 years from the date of borrowing. What is the total amount due on this borrowing at the due date?
Based on the terms of a bond, it pays a holder $62,500 three years after it...
Based on the terms of a bond, it pays a holder $62,500 three years after it is issued. The stated interest rate on this bond is 4%, which is commensurate with the market interest rate. What is the present value of this bond? Assume annual compounding. $55,541 $55,549 $55,554 $55,559 $55,562 $55,568 none of the above
Based on the terms of a bond, it pays a holder $62,500 three years after it...
Based on the terms of a bond, it pays a holder $62,500 three years after it is issued. The stated interest rate on this bond is 4%, which is commensurate with the market interest rate. What is the present value of this bond? Assume annual compounding. 1. $55,541 2. $55,549 3. $55,554 4. $55,559 5. $55,562 6. $55,568 7. none of the above
Based on the terms of a bond, it pays a holder $62,500 three years after it...
Based on the terms of a bond, it pays a holder $62,500 three years after it is issued. The stated interest rate on this bond is 4%, which is commensurate with the market interest rate. What is the present value of this bond? Assume annual compounding.
On 8/30/16 a company borrows $18,000 from a local bank. The principal is required to be...
On 8/30/16 a company borrows $18,000 from a local bank. The principal is required to be paid in four annual installments of equal amounts ($4,500), beginning 8/30/17. The annual interest rate is 4%. The interest is payable annually, starting on 8/30/17. Which of the following statements is correct about the journal entries recorded by the company on 8/30/16? (continued from the previous question) Which of the following statements is correct about the journal entries recorded by the company on 12/31/16?...
On 8/30/16 a company borrows $18,000 from a local bank. The principal is required to be...
On 8/30/16 a company borrows $18,000 from a local bank. The principal is required to be paid in four annual installments of equal amounts ($4,500), beginning 8/30/17. The annual interest rate is 4%. The interest is payable annually, starting on 8/30/17. Which of the following statements is correct about the journal entries recorded by the company on 8/30/16? A balance sheet account is debited for $18,000 and an income statement account is credited for the same amount A balance sheet...
On 8/30/16 a company borrows $18,000 from a local bank. The principal is required to be...
On 8/30/16 a company borrows $18,000 from a local bank. The principal is required to be paid in four annual installments of equal amounts ($4,500), beginning 8/30/17. The annual interest rate is 4%. The interest is payable annually, starting on 8/30/17 Which of the following statements is correct about the journal entries recorded by the company on 8/30/16? (continued from previous quedtion) Which of the following statements is correct about the journal entries recorded by the company on 8/30/17? An...
Smith Company borrows cash by issuing a bond payable with the following terms: $8,000,000, 8%...
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Prince Charming Company borrows $100,000 from the bank on April 1, 2015. This loan is in...
Prince Charming Company borrows $100,000 from the bank on April
1, 2015. This loan is in the form of a note that is due in one year
(March 31, 2016). The annual interest rate is 10%, and interest is
paid on September 30, 2015 and on March 31, 2016 (due date). The
fiscal year end for Prince Charming is 12/31. What balance should
be recorded for interest expense at March 31, 2016 assuming the
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On 8/30/16 a company borrows $18,000 from a local bank. The principal is required to be paid in four annual installments of equal amounts ($4,500), beginning 8/30/17. The annual interest rate is 4%. The interest is payable annually, starting on 8/30/17. Which of the following statements is correct about the journal entries recorded by the company on 8/30/16? (continued from the previous question) Which of the following statements is correct about the journal entries recorded by the company on 12/31/16?...
On 8/30/16 a company borrows $18,000 from a local bank. The principal is required to be paid in four annual installments of equal amounts ($4,500), beginning 8/30/17. The annual interest rate is 4%. The interest is payable annually, starting on 8/30/17. Which of the following statements is correct about the journal entries recorded by the company on 8/30/16? A balance sheet account is debited for $18,000 and an income statement account is credited for the same amount A balance sheet...
On 8/30/16 a company borrows $18,000 from a local bank. The principal is required to be paid in four annual installments of equal amounts ($4,500), beginning 8/30/17. The annual interest rate is 4%. The interest is payable annually, starting on 8/30/17 Which of the following statements is correct about the journal entries recorded by the company on 8/30/16? (continued from previous quedtion) Which of the following statements is correct about the journal entries recorded by the company on 8/30/17? An...
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paid on September 30, 2015 and on March 31, 2016 (due date). The
fiscal year end for Prince Charming is 12/31. What balance should
be recorded for interest expense at March 31, 2016 assuming the
earlier adjusting journal entries have been...
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