Abdullah buys a TV with a cash price RM6,500 by making an initial deposit of RM2,000. The balance will be settled by making 18 monthly deposits of RM300 each. Find the: a) Nominal rate compounded monthly that is being charged. [ans:23.93%] b) Effective rate that is being charged. [ans:26.74%]
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Please explain both subparts.
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- 4. On 1/1/21 we sell equipment and accept a 3-year note receivable for $36,500. The market value is $36,500. Payments of $13,655 include both principal and interest and are to be made annually starting on 1/1/22. The present value of the payments is $36,500. The bank would require the purchaser to pay interest of 6% in order to borrow from them. The equipment cost us $90,000 and had a book value of $40,000. Note: Be sure to show the date of each journal entry. The 'right' journal entry on the 'wrong' date is wrong. a. Prepare an amortization table b. Prepare the journal entry for 1/1/21 c. Prepare the journal entry for 12/31/21 d. Prepare the journal entry for 1/1/22 Amortization table: Journal entries: Debits Credits 1/1/21 12/31/21 1/1/22(c) Alata Kwaku borrowed ¢2,130 from his uncle and promised to pay him ¢2,720 after 2 years. With annual compounding, find the implied annual rate of interest for this loan.(d) Oberima Adonteng’s bank account pays 8.8% annual interest, compounded monthly. If the present value is ¢2, its future value is ¢4. How long will it take the money to double in the account?A. A man having a debt of ₱2000.00 agrees to pay it at the end of 7 years. At due, he must pay a sum with an interest of ₱750.00. What is the agreed rate of interest compounded quarterly? Ans: 4.58% B. A laptop from an online shop will cost ₱3000.00 if agreed terms is 10% compounded quarterly for a year. What is the cash price today of the calculator? Ans: ₱2717.85
- 1. Hanzalah took a loan of RMx from Bank ABC at interest rate of 4.5% compounded monthly. After 10 years, the amount to be paid is RM47,009.78. Find x.(RM30000)2. Mr. Dizon borrowed P35,000.00 from the cooperative bank. Find the simple interest if it is to be paid after 5 months with an interest rate of 1.50 %per month.1. Hanzalah took a loan of RMY from Bank ABC at interest rate of 4.5% compounded monthly.After 10 years, the amount to be paid is RM47,009.78. Find Y.(RM30000)
- 9. Marissa took a loan of RMY from Bank Perpaduan at interest rate of 6.5% compounded every two months. After 8 years, the amount to be paid is RM8,386.65. Find Y. (RM5000)8. Find the discount rate if Php 7,000 is the present value of Php 7,500 which is due at the end of 4 months. 9. Jerome obtains Php 15,000 as the proceeds of a 300-day loan from a bank charging 5% Discount. What will Jerome pay at the maturity date? 10, What interest rate is equivalent to the discount rate 8% in discounting an amount for: a) 3 months; b) 1 year; c) 6 yearsYou agree to make 24 deposits of Php500 at the beginning of each month into a bank account. At the end of the 24th month, you will have Php13,000 in your account. If the bank compounds interest monthly, what nominal annual interest rate will you be earning? a. 7.62% B. 8.00% C. 8.40% D. 8.82% e.9.26%
- 10. Jade paid P10,400 on May 13, 2011 for his loan of P9,000 made on a certain date. The simple interest rate was 8% per annum. Using banker's rule, determine the term of the loan in days and the date of loan. 11. A man wants to receive P800 and immediately pay it back in one year. The bank charges a simple discount of 6% payable at once. How much must be borrowed? What is the rate of interest? 12. Magui borrowed P30,000 in a bank at 18% per annum from May 13, 2016 to May 27, 2021. Find the exact simple interest.5. An investor buys a 150 TL investment fund from the bank and sells it for 165 TL after 25 days. What is the % of Annual Effective Return? 6. If the monthly (periodically) interest is 1% for a one-month deposit, what is the Annual Effective Return?2. Aiman borrows RM750 for 5 months from Bank ABC who charges a 9% simple discount rate. (a) (b) What size of loan should Aiman ask for in order to receive RM1,200 cash? (c) What is the equivalent simple interest rate he pays on the loan? How much money does Aiman receive?