A company has just purchased a machine with a cost of $79,994, and signed a note...
A company has just purchased a machine with a cost of $79,994, and signed a note to pay the manufacturer equal semi-annual amounts of $9,378. If the current rate of interest is 6%, how many equal payments will be made?
Select one:
a. 5
b. 6
c. 8
d. 10
e. 12
Please show all work and use Present Value Tables
Homework Answers
Answer:
option d) is correct . i.e 10,
machine cost= PVAF semi-annual payments X PVAF(3%,No of payment)
$79,994=$9,378 X PVAF(3%,no of payment)
PVAF(3%,no of payment)=$79,994/9,378
PVAF(3%,no of payment)= 8.52996 i.e 8.53
use Present Value Tables
3% PVAF, 10 period is 8.530
Therefore no of payment is 10
Add Answer to:
A company has just purchased a machine with a cost of $79,994,
and signed a note...
e. Assume that a machine was purchased for $53,700. Cash of $24,500 was paid, and a...
e. Assume that a machine was purchased for $53,700. Cash of $24,500 was paid, and a four-year, 8% note payable was signed for the balance. 1. Prepare the horizontal model and record the journal entry, to show the purchase of the machine as described. 2. How much is the equal annual payment of principal and interest due at the end of each year? 3. What is the total amount of interest expense that will be reported over the life of...
Assume that a machine was purchased for $59,200, Cash of 18,900 was paid and a four-year,...
Assume that a machine was purchased for $59,200, Cash of 18,900 was paid and a four-year, 8% note payable was signed for the balance. Prepare the horizontal model, to show the equal annual payments of principal and interest due at the end of each year.
Stellar Corporation purchased equipment and in exchange signed a two-year promissory note. The note requires Stellar...
Stellar Corporation purchased equipment and in exchange signed a two-year promissory note. The note requires Stellar to make a single payment of $100,000 in two years. Stellar has other promissory notes that charge interest at the annual rate of 5 percent. Part of Legendary Corporation purchased equipment and in exchange signed a three-year promissory note. The note requires Legendary to make equal annual payments of $10,000 at the end of each of the next three years. Legendary has other promissory...
12 Tamarisk Company purchased a machine at a price of $109,700 by signing a note payable,...
12
Tamarisk Company purchased a machine at a price of $109,700 by signing a note payable, which requires a single payment of $132,737 in 2 years. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. Assuming annual compounding of interest, what rate of interest is being paid on the loan? (Round answer to 0 decimal places, e.g. 52%.) Rate of interest % LINK TO...
Exercise 6-9 Headland Company purchased a machine at a price of $92,700 by signing a note...
Exercise 6-9 Headland Company purchased a machine at a price of $92,700 by signing a note payable, which requires a single payment of $136,207 in 5 years Click here to view factor tables Assuming annual compounding of interest, what rate of interest is being paid on the loan? (Round answer to 0 decimal places, eg, 13%.) Rate of interest Click if you would like to Show Work for this question: Open Show Work
ABC purchased equipment at a cost of $ 45,000. To finance the purchase, he signed a...
ABC purchased equipment at a cost of $ 45,000. To finance the purchase, he signed a five-year promissory note, which requires five equal annual payments. ABC will make the first payment in one year. Each payment will be in the amount of $ 12,795. Suppose the note carries an interest rate of 12% and ABC will pay $ 10,000 annually for the five years of the note. At the end of year 5, in addition to the $ 10,000, ABC...
A company purchased equipment and signed a 4-year installment loan at 6% annual interest. The annual...
A company purchased equipment and signed a 4-year installment loan at 6% annual interest. The annual payments equal $11,200. The present value for an annuity (series of payments) at 6% for 4 years is 3.4651. The present value of 1 (single sum) for 4 years at 6% is 7921. The present value of the loan is: Multiple Choice $11,200. $8,872. $14,140 $44.800 $38,809
Beta purchased a computer at a cost of $ 45,000. To finance the purchase, he signed...
Beta purchased a computer at a cost of $ 45,000. To finance the purchase, he signed a five-year promissory note, which requires five equal annual payments. Beta will make the first payment in a year. Each payment will be in the amount of $ 12,795. Suppose the note from the previous year carries an interest rate of 12% and Beta will pay $ 10,000 annually over the five years of the note. At the end of year 5, in addition...
A company purchased equipment and signed a 3-year installment loan at 6% annual interest. The annual...
A company purchased equipment and signed a 3-year installment loan at 6% annual interest. The annual payments equal $9,800. The present value of an annuity factor for 3 years at 6% is 2.6730. The present value of a single sum factor for 3 years at 6% is .8396. The present value of the loan is: $29,400. $8,228. $9,800. $11,672. $26,195.
On 12-31-15, Acme purchased a machine. Acme signed a $800,000 zero-interest bearing note. The note is...
On 12-31-15, Acme purchased a machine. Acme signed a $800,000 zero-interest bearing note. The note is payable in full on 12-31-17. Assume an acceptable interest rate on similar notes was 4%. On 12-31-15, Acme incurred and paid $12,000 to have the machine installed in its sales office. In this problem, you can ignore depreciation – we’ll get to that in chapter 11. Prepare the entries Acme should make related to this note on: 12-31-15. 12-31-16. 12-31-17.
e. Assume that a machine was purchased for $53,700. Cash of $24,500 was paid, and a four-year, 8% note payable was signed for the balance. 1. Prepare the horizontal model and record the journal entry, to show the purchase of the machine as described. 2. How much is the equal annual payment of principal and interest due at the end of each year? 3. What is the total amount of interest expense that will be reported over the life of...
Stellar Corporation purchased equipment and in exchange signed a two-year promissory note. The note requires Stellar to make a single payment of $100,000 in two years. Stellar has other promissory notes that charge interest at the annual rate of 5 percent. Part of Legendary Corporation purchased equipment and in exchange signed a three-year promissory note. The note requires Legendary to make equal annual payments of $10,000 at the end of each of the next three years. Legendary has other promissory...
12
Tamarisk Company purchased a machine at a price of $109,700 by signing a note payable, which requires a single payment of $132,737 in 2 years. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. Assuming annual compounding of interest, what rate of interest is being paid on the loan? (Round answer to 0 decimal places, e.g. 52%.) Rate of interest % LINK TO...
Exercise 6-9 Headland Company purchased a machine at a price of $92,700 by signing a note payable, which requires a single payment of $136,207 in 5 years Click here to view factor tables Assuming annual compounding of interest, what rate of interest is being paid on the loan? (Round answer to 0 decimal places, eg, 13%.) Rate of interest Click if you would like to Show Work for this question: Open Show Work
ABC purchased equipment at a cost of $ 45,000. To finance the purchase, he signed a five-year promissory note, which requires five equal annual payments. ABC will make the first payment in one year. Each payment will be in the amount of $ 12,795. Suppose the note carries an interest rate of 12% and ABC will pay $ 10,000 annually for the five years of the note. At the end of year 5, in addition to the $ 10,000, ABC...
A company purchased equipment and signed a 4-year installment loan at 6% annual interest. The annual payments equal $11,200. The present value for an annuity (series of payments) at 6% for 4 years is 3.4651. The present value of 1 (single sum) for 4 years at 6% is 7921. The present value of the loan is: Multiple Choice $11,200. $8,872. $14,140 $44.800 $38,809
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 11 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 11 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 11 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 11 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 11 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 11 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 11 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 11 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 11 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 11 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 11 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 11 months ago