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bogdanovich [222]
3 years ago
7

On March 1st, the Picasso Co. issued a 12 month, $120,000 note, to the Bank of Carbondale. The note carries a 10% interest rate

and all payments for principal and interest will be paid at the end of 1 year. What is the maturity value of the note?
Business
1 answer:
alexira [117]3 years ago
6 0

Answer:

The maturity value of the note is <u>$132,000</u>

Explanation:

A Loan note is a promissory note that is signed to make a promise of an amount of Loan taken by someone that to be returned after a specific time with interest value at a defined in the loan note.

The maturity value of the loan note can be calculated as follow

Face value = $120,000

Interest rate = 10%

Time period = 1 years

Use following formula to calculate the maturity value of the loan note.

Maturity value = Face value x  ( 1 + interest rate )^ numbers of years

Placing values in the formula

Maturity value = $120,000 x ( 1 + 10% )^1

Maturity value = $132,000

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A company’s capital structure decisions address the ways a firm’s assets are financed (using debt, preferred stock, and common e
MArishka [77]

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Option D (The optimal........capital) would be the right choice.

Explanation:

  • The optimal composition of capital would be the one with the lowest average capital structure.
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4 years ago
Ficus, Inc. began business on March 1, 2018, and elected to file its income tax return on a calendar-year basis. The corporation
Aleks04 [339]

Answer:

c. $44.44

Explanation:

For computing the maximum allowable deduction for amortization of organizational expenditures, first, we have to determine the per month deduction which is shown below:

= Organization expenditure incurred ÷ number of months

= $800 ÷ 180 months

= $4.44

Now for 10 months, it would be

= $4.44 × 10 months

= $44.44

The 10 months is calculated from March 1 to December 31. As we assume the books are closed on December 31

7 0
3 years ago
To make the most of your time you should break up large projects into small pieces true or false
g100num [7]

Answer:

True, To make the most of your time you should break up large projects into small pieces.

Explanation:

One way to break tasks down:

  • Watch out for the large image. ...
  • Review the elements of the task. ...
  • Think about the relevant order of completing the pieces. ...
  • Construct a timeline for accomplishing your tasks. ...
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5 0
3 years ago
Your client, Brooke, decides to start saving for her son's college tuition. Her son was born today and will go to college at age
oksian1 [2.3K]

Answer:

The present value of the total amount that Brooke needs to have saved at the beginning of her son's first year of college is 31.959,13

Explanation:

Tuition Fees after inflation at

Year 18 = 15000* ( 1+6.5%)18 = 46599.8157

Year 19 = 15000* ( 1+6.5%)19 = 49628.8037

Year 20 = 15000* ( 1+6.5%)20 =  52854.6759

Year 21 = 15000* ( 1+6.5%)21 =  56290.2299

Since discount rate = 10%

So discount factor = 1+r = 1+10% = 1.1

Since fees are paid at beginning of period hence

Present Value of Fees = Fees (year 18)/1.1^18 +Fees at Year 19/1.1^19 +Fees at Year 20/1.1^20 + Fees at year 21/1.1^21 = 46599.8157/1.1^18 +  49628.8037/1.1^19 +  52854.6759/1,1^20 + 56290.2299^21 = 31959.13

3 0
4 years ago
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