3. Brown Corp borrowed $10 million and issued a 9-month, noninterest-bearing note on Oct. 31, 2018....
3. Brown Corp borrowed $10 million and issued a 9-month, noninterest-bearing note on Oct. 31, 2018. The loan was made by US Bankcorp. Interest was discounted at issuance at an 9% discount rate. What is the annual effective interest rate on this loan?
Homework Answers
Solution:
Discount amount = $10,000,000 * 9%*9/12 = $675,000
Proceeds from loan = $10,000,000 - $675,000 = $9,325,000
Effective annual interest rate = $675,000 / $9,325,000*12/9 = 9.65%
Add Answer to:
3. Brown Corp borrowed $10 million and issued a 9-month,
noninterest-bearing note on Oct. 31, 2018....
On October 31, 2011, Simeon Builders borrowed $16 million cash and issued a 7-month, noninterest-bearing note....
On October 31, 2011, Simeon Builders borrowed $16 million cash and issued a 7-month, noninterest-bearing note. The loan was made by Star Finance Co. whose stated discount rate is 8%. Sky's effective interest rate on this loan is: (Explain how you got the answer) a) More than the stated discount rate of 8% b) Less than the stated discount rate of 8% c) Equal to the stated discount rate of 8% Please also explain how you came to your answer
Brown Corp. borrowed 100,000 on Oct. 1, 2018 and signed a 12 month note bearing interest...
Brown Corp. borrowed 100,000 on Oct. 1, 2018 and signed a 12 month note bearing interest at 6 %. Interest is payable in full at maturity on Sep. 30, 2019. Brown Corp should report interest payable at Dec. 31,2018 in the amount of journal entry to record the accrued liability:
On September 1, 2018, Hiker Shoes issued a $104,000, 8-month, noninterest-bearing note. The loan was made...
On September 1, 2018, Hiker Shoes issued a $104,000, 8-month, noninterest-bearing note. The loan was made by Second Commercial Bank where the stated discount rate is 7%. Hiker's effective interest rate on this loan (rounded) is: (Do not round intermediate calculations. Round your final answer to two decimal places, e.g., .1234 as 12.34%.) Multiple Choice Ο 700%. Ο 734%. Ο 7.26%. Ο 727%.
Question 1 (1 point) Saved On October 31, 2021, Simeon Builders borrowed $16 million cash and...
Question 1 (1 point) Saved On October 31, 2021, Simeon Builders borrowed $16 million cash and issued a 7- month, noninterest-bearing note. The loan was made by Star Finance Co. The stated discount rate is 8%. Sky's effective interest rate on this loan is: Equal to the stated discount rate of 8%. More than the stated discount rate of 8%. Unrelated to the stated discount rate of 8%. Less than the stated discount rate of 8%.
Life.com issued $10 million of commercial paper on April 1 on a nine-month note. Interest was...
Life.com issued $10 million of commercial paper on April 1 on a nine-month note. Interest was discounted at issuance at a 6% discount rate. Complete the below table to calculate the effective interest rate on the commercial paper. (Do not round intermediate calculation. Enter your answers in whole dollars. Round "Annual Effective Rate" to 1 decimal place. (i.e., 0.123 should be entered as 12.3).) Principal $ 10,000,000 * Annual x 6% Time 9/12 = = Discount $ 450,000 Calculation of...
1 Blanton Plastics, a household plastic product manufacturer, borrowed $24 million cash on October 1, 2018,...
1
Blanton Plastics, a household plastic product manufacturer, borrowed $24 million cash on October 1, 2018, to provide working capital for year-end production. Blanton issued a four-month, 15% promissory note to L&T Bank under a prearranged short-term line of credit. Interest on the note was payable at maturity. Each firm's fiscal period is the calendar year. Required: 1. Prepare the journal entries to record (a) the issuance of the note by Blanton Plastics and (b) L&T Bank's receivable on October...
On June 1, 2018, Dirty Harry Co. borrowed cash by issuing a 6-month noninterest-bearing note with...
On June 1, 2018, Dirty Harry Co. borrowed cash by issuing a 6-month noninterest-bearing note with a maturity value of $440,000 and a discount rate of 6%. Assuming straight-line amortization of the discount, what is the carrying value of the note as of September 30, 2018? (Round all calculations to the nearest whole dollar amount.) Multiple Choice 0 $426,800 O $418,000 0 $462.000 0 $435,600
Life.com issued $13 million of commercial paper on April 1 on a nine-month note. Interest was...
Life.com issued $13 million of commercial
paper on April 1 on a nine-month note. Interest was discounted at
issuance at a 8% discount rate. Complete the below table to
calculate the effective interest rate on the commercial paper. (Do
not round intermediate calculation. Enter your answers in whole
dollars. Round "Annual Effective Rate" to 1 decimal place. (i.e.,
0.123 should be entered as 12.3).)
Life.com issued $13 million of commercial paper on April 1 on a nine-month note. Interest was...
Life.com issued $16 million of commercial paper on April 1 on a nine-month note. Interest was...
Life.com issued $16 million of commercial paper on April 1 on a nine-month note. Interest was discounted at issuance at a 10% discount rate. Complete the below table to calculate the effective interest rate on the commercial paper. (Do not round intermediate calculation. Enter your answers in whole dollars. Round "Annual Effective Rate" to 1 decimal place. (i.e., 0.123 should be entered as 12.3).) Principal Annual Rate х Time Discount Calculation of discount $ 16,000,000 x % X 9-month rate...
Life.com issued $18 million of commercial paper on April 1 on a nine-month note. Interest was...
Life.com issued $18 million of commercial paper on April 1 on a nine-month note. Interest was discounted at issuance at a 8% discount rate Complete the below table to calculate the effective interest rate on the commercial paper. (Do not round intermediate calculation. Enter your answers in whole dollars. Round "Annual Effective Rate" to 1 decimal place. (l.e., 0.123 should be entered as 12.3).) Principal Annual Rate X Time Discount Calculation of discount $ 18,000,000 x 9-month Conversion Factor Annual...
On September 1, 2018, Hiker Shoes issued a $104,000, 8-month, noninterest-bearing note. The loan was made by Second Commercial Bank where the stated discount rate is 7%. Hiker's effective interest rate on this loan (rounded) is: (Do not round intermediate calculations. Round your final answer to two decimal places, e.g., .1234 as 12.34%.) Multiple Choice Ο 700%. Ο 734%. Ο 7.26%. Ο 727%.
Question 1 (1 point) Saved On October 31, 2021, Simeon Builders borrowed $16 million cash and issued a 7- month, noninterest-bearing note. The loan was made by Star Finance Co. The stated discount rate is 8%. Sky's effective interest rate on this loan is: Equal to the stated discount rate of 8%. More than the stated discount rate of 8%. Unrelated to the stated discount rate of 8%. Less than the stated discount rate of 8%.
Life.com issued $10 million of commercial paper on April 1 on a nine-month note. Interest was discounted at issuance at a 6% discount rate. Complete the below table to calculate the effective interest rate on the commercial paper. (Do not round intermediate calculation. Enter your answers in whole dollars. Round "Annual Effective Rate" to 1 decimal place. (i.e., 0.123 should be entered as 12.3).) Principal $ 10,000,000 * Annual x 6% Time 9/12 = = Discount $ 450,000 Calculation of...
1
Blanton Plastics, a household plastic product manufacturer, borrowed $24 million cash on October 1, 2018, to provide working capital for year-end production. Blanton issued a four-month, 15% promissory note to L&T Bank under a prearranged short-term line of credit. Interest on the note was payable at maturity. Each firm's fiscal period is the calendar year. Required: 1. Prepare the journal entries to record (a) the issuance of the note by Blanton Plastics and (b) L&T Bank's receivable on October...
On June 1, 2018, Dirty Harry Co. borrowed cash by issuing a 6-month noninterest-bearing note with a maturity value of $440,000 and a discount rate of 6%. Assuming straight-line amortization of the discount, what is the carrying value of the note as of September 30, 2018? (Round all calculations to the nearest whole dollar amount.) Multiple Choice 0 $426,800 O $418,000 0 $462.000 0 $435,600
Life.com issued $13 million of commercial
paper on April 1 on a nine-month note. Interest was discounted at
issuance at a 8% discount rate. Complete the below table to
calculate the effective interest rate on the commercial paper. (Do
not round intermediate calculation. Enter your answers in whole
dollars. Round "Annual Effective Rate" to 1 decimal place. (i.e.,
0.123 should be entered as 12.3).)
Life.com issued $13 million of commercial paper on April 1 on a nine-month note. Interest was...
Life.com issued $16 million of commercial paper on April 1 on a nine-month note. Interest was discounted at issuance at a 10% discount rate. Complete the below table to calculate the effective interest rate on the commercial paper. (Do not round intermediate calculation. Enter your answers in whole dollars. Round "Annual Effective Rate" to 1 decimal place. (i.e., 0.123 should be entered as 12.3).) Principal Annual Rate х Time Discount Calculation of discount $ 16,000,000 x % X 9-month rate...
Life.com issued $18 million of commercial paper on April 1 on a nine-month note. Interest was discounted at issuance at a 8% discount rate Complete the below table to calculate the effective interest rate on the commercial paper. (Do not round intermediate calculation. Enter your answers in whole dollars. Round "Annual Effective Rate" to 1 decimal place. (l.e., 0.123 should be entered as 12.3).) Principal Annual Rate X Time Discount Calculation of discount $ 18,000,000 x 9-month Conversion Factor Annual...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 10 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 10 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 10 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 10 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 10 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 10 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 10 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 10 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 10 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 10 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 10 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 10 months ago