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Vilka [71]
3 years ago
6

lila gallo borrowed $10000 from her bank to build up the inventory of her stationery store. the loan was payable in six months a

t 12 percent interest per year, which the bank deducted in advance. how much money did lila actually receive/
Business
2 answers:
sesenic [268]3 years ago
5 0

Answer:

$9,400

Explanation:

generally bank loans collect their interests when the loan payments are due, e.g. every monthly payment includes a part that pays interests and another that reduces principal amount. In this case, Lila got a 6 month loan that requires a lump sum payment at the end of the sixth month, but the bank charges her interest in advance, which is a fancy way of actually charging a higher effective interest.

she will receive principal - (principal x interest charges) = $10,000 - ($10,000 x 12%/2) = $10,000 - $600 = $9,400

in this case, the interest rate that Lila is effectively paying = $600 / $9,400 =   6.38% semiannual or 12.77% annual

antiseptic1488 [7]3 years ago
4 0

Answer:

Explanation:

Amount actually received = Initial amount - interest payment

Interest payment = 10,000*12%/2 = 10,000*6% = 600

Amount actually received = 10,000-600 = $9,400

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Answer and Explanation:

The journal entries are shown below:

1. 11% bonds payable $336,270.95

         To cash  $336,270.95

(Being the bond purchased for cash is recorded)

2. Cash ($312,000 × 11%)      $34,320

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       To 11% bond payable $4,056

(Being the interest revenue is recorded)

Fair value adjustment $1,685.05

       To Unrealized gain $1,685.05

(Being the recognition of fair value is recorded)

It is computed below:

= (333,900 - ($336,270.95 - $4,056) )

3. Unrealized gain $13,000     ($333,900 - $320,900)

            To fair value adjustment $13,000

(Being the  recognition of fair value is recorded)

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<h3>What is monetary policy lags ?</h3>

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To learn more about monetary policy check the given linkhttps://brainly.in/question/6090122

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