Añ ássóčiátión charges borrowers 7% interest, payable monthly vance, and issues $100 shares on which the monthly dues are $1 per If the shares mature at the end of 80 months, without a payment at time, at what effective rate does a borrower amortize his debt?
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- On July 1, a company sells 8-year $250,000 bonds with a stated interest rate of 6%. If interest payments are paid annually, each interest payment will be ________. A. $120,000 B. $60,000 C. $7,500 D. $15,000A company issues $50,000 of 5%, 10-year bonds dated January 1 and pay interest semiannually on June 30 and December 31 each year. The bonds are sold for 48,000. Using straight-line amortization method, the company will amortize the discount by $_________ on each semiannual interest payment.On December 31, Caper, Inc., issued $500,000 of 8% , 9-year bonds for $440,000, yielding an effective interest rate of 10%. Semiannual interest is payable on June 30 and December 31 each year. The firm uses the effective interest method to amortize the discount. Required a. Prepare an amortization schedule showing the necessary information for the first two interest periods. Round amounts to the nearest dollar. b. Prepare the journal entry for the bond issuance on December 31. c. Prepare the journal entry to record the bond interest payment and discount amortization at June 30 of the following year. d. Prepare the journal entry to record the bond interest payment and discount amortization at December 31 of the following year. a. Year at issue 1 Date b. Dec.31 Cash C. Jun.30 Interest Interest Period Paid d. 1 2 $ 0 $ 0 0 Interest Expense To record issuance of bonds. Balance Periodic of Unamortized Amortization Discount 0 $ 0 0 General Journal Description 0$ 0 0 + 수 수 + Book Value of…
- Darby company issues a $100,000 on 12/31/x0, 10%, bond that matures in 3 years. interest is paid on december 31st of each year. Next, (still Darby company) How about a 9% zero issued on 12/31/x0, due in 3 years, face amount of $100,000. How much would you pay? Amortize it.1. Bank CO approved a loan application of Client ME on January 1, 20A for P3,500,000. Client ME is required to pay 15% interest annually every December 31, from 20A until the principal is extinguished. Client ME has to make an equal annual principal payment of its obligation to commence December 31, 20A. An amount of P61,192 was paid by Client ME as its share from the origination fee totaling P161,192, and the rest was shouldered by the bank resulting to a 14.50% new effective interest rate. On December 31, 20A, the non-current portion of the loan receivable isA new Corporate bond was initially sold by a stockholder to an investor for $950. The issuing corporation promised to pay the bondholder $40 interest every 6 months and $1,000 will be repaid at the end of 9 years. What is rate of return, nominal interest rate and effective interest rate.
- Heathcliff owes $10,000.00 bearing interest at 6% c.m. for 5 years. Six months before the due date, the debt is commuted into two equal payments, one due in 6 months and another due in 18 months. The new interest rate is set at 8% c.q. Determine the payment size.On the first day of the fiscal year, a company issues a $2,400, 000, 6%, 6-year bond that pays semiannual interest of $72,000, receiving cash of 2, 523,092. Use straight line amortization, journalize thebfirst interest oayment snd the amortization of the related bind premium. Riund to the nearest dollar. If an amohnt box does not require an entry, leave it blank.1.18q Determine the payment to amortize the debt. (Round your answer to the nearest cent.) Quarterly payments on $17,500 at 3.9% for 6 years.
- 3a) The company issues a note to an entity to borrow cash for five years and will pay $500,000 to the entity at the end of the fifth year but not pay any interest. If the annual market interest rate is 4%, please calculate the present value of the note (compounded annually and rounded to the nearest dollar).Gela Corporation borrows P250,000.00 at 15% percent annual interest. Principal and interest is due in 1 year. What is the effective interest rate? choose the letter of answer a. Noneb. 15%c. 19%d. 20%e. 21%PLEASE TYPE IT AND NOT HANDWRITTEN An obligation will be amortized by quarterly payments of P5,000 for 10 years. If interest is 6% compounded quarterly, find: a. the present value of the loan b. the outstanding principal after 7 years c. the remaining liability just after the 15th payment d. how much of the 15th payment interests, and how much goes to the principal?