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2 years ago

Assume that Mahmood Corp. lends Ahmad $10,000 in exchange for a $10,000,

Business

1 answer:

kolezko [41]2 years ago

7 0

Answer:

1) the present value of the note:

PV of face value = $10,000 / (1 + 8%)³ = $7,938.32

PV of interest payments = $1,000 x 2.5771 (PV annuity factor, 8%, 3 periods) = $2,577.10

PV of note = $10,515.42

2) Dr Notes receivable 10,515.42

Cr Cash 10,000

Cr Discount on notes receivable 515.42

3) assuming the loan was made January 2, 2021

Date Cash flow Discount Balance

January 2, 2021 -$10,000 $10,515.42

January 2, 2022 $1,000 $171.81 $10,343.61

January 2, 2023 $1,000 $171.81 $10,171.80

January 2, 2024 $11,000 $171.80 $0

4) December 31, accrued interest on notes receivable

Dr Interest receivable 1,000

Dr Discount on notes receivable 171.81

Cr Interest revenue 1,171.81

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How can you avoid spending more than what is in your

zimovet [89]

Answer:

keep your own records to compare with your financial institutions records

4 0

3 years ago

eBay question I know there are fees for eBay when you sell something but I don’t know exactly so I just wanted to ask if I were

laila [671]

eBay has an algorithm where they take 9% of what you make until that gets up to $50 which in this case doesnt' really matter. They would take 9% of every order so if you sold your item for $10 you would actually get like $9.10 or something similar.

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3 years ago

To join an upscale country club, an individual must first purchase a membership bond for $20,000. In addition, monthly member

OverLord2011 [107]

Answer: $61,697.90

Explanation:

GIVEN the following ;

Membership bond = $20,000

Monthly membership due= $250

Annual percentage rate(APR) = 6% = 0.06

monthly rate (r) = 0.06 ÷ 12 = 0.005

Payment per period(P) = $250

Using the formula for present value of ordinary annuity:

PRESENT VALUE (PV) =

P[(1 - ((1 + r)^(-n)) ÷ r]

$250 [ 1 - ((1 + 0.005)^-360))÷0.005]

$250 [( 1 - (1.005)^-360)÷ 0.005]

$250 × [0.83395807196 ÷ 0.005]

$250 × 166.791614392335

PV = $41,697.90

Membership bond + present value

$20,000 + $41,697.90

= $61,697.90

8 0

3 years ago

In a portfolio problem, X1, X2, and X3 represent the number of shares purchased of stocks 1, 2, and 3, which have selling prices

vaieri [72.5K]

Answer:

The correct solution is " $x_1 \leq 0.35 (x_1 + x_2 + x_3)$ ".

Explanation:

According to the question,

Let,

For stock 1,

The number of shares to be purchased will be " $x_1$ ".

For stock 2,

The number of shares to be purchased will be " $x_2$ ".

For stock 3,

The number of shares to be purchased will be " $x_3$ ".

then,

The cumulative number of shares throughout stock 1 would be well over or equivalent towards the approximate amount of all the shares or stocks for the set limit.

i.e., $x_1+x_2+x_3$

Thus the correct equation is " $x_1 \leq 0.35(x_1+x_2+x_3)$ ".

7 0

2 years ago

Yale Corporation issued to Zap Corporation $48,000, 8% (cash interest payable semiannually on June 30 and December 31) 10-year b

tino4ka555 [31]

Answer:

Yale Corporation

Journal Entries:

a. January 1, 2020:

Debit Cash $44,878

Debit Premium on bonds $3,122

Credit 8% Bonds Payable $48,000

To record issuance of the bonds.

b. June 30, 2020:

Debit Interest Expense $2,020

Credit Bond Discounts $100

Credit Cash $1,920

To record the first payment of interest.

Explanation:

a) Data and Calculations:

January 1, 2020:

Face value of bonds = $48,000

Price of bonds = $44,878

Discounts on bonds = $3,122

Coupon interest rate = 8%

Interest payment = semiannually on June 30 and December 31

Maturity period = 10 years

Effective interest rate = 9%

June 30, 2020:

Interest Expense $2,020 ($44,878 * 4.5%)

Cash payment 1,920 ($48,000 * 4%)

Discount amortization $100

Value of Bonds = $44,978 ($44,878 + $100)

December 31, 2020:

Interest Expense $2,024 ($44,978 * 4.5%)

Cash payment 1,920 ($48,000 * 4%)

Discount amortization $104

Value of Bonds = $45,082 ($44,978 + $104)

N (# of periods) 20

I/Y (Interest per year) 9

PMT (Periodic Payment) 1920

FV (Future Value) 48000

Results

PV = $44,878.10

Sum of all periodic payments $38,400.00

Total Interest $41,521.90

4 0

3 years ago