Bank Discount Note: Kwame Adebele borrowed $2500 for 5 months from a bank, using U.S. governm as security. The bank discounted the loan at 2% a.) How much interest did Kwame pay the bank for the use of its money? b.) How much did he receive from the bank? c.) What was the actual rate of interest he paid?

Bank Discount Note: Kwame Adebele borrowed $2500 for 5 months from a bank, using U.S. governm as security. The bank discounted the loan at 2% a.) How much interest did Kwame pay the bank for the use of its money? b.) How much did he receive from the bank? c.) What was the actual rate of interest he paid?

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter4: Gross Income: Concepts And Inclusions

Section: Chapter Questions

Problem 8DQ

See similar textbooks

Similar questions

Rafael Sandino borrowed $23,000 on a 180-day, 11% note. After 80 days, Rafael paid $2,600 on the note. On day 120, Rafael paid an additional $4,600. Assume no further payments were made. Use ordinary interest. a.Determine the total interest paid during the life of the loan; use the U.S. Rule. (Do not round intermediate calculations. Roundyour answer to the nearest cent.) b.Determine the ending balance due (the payoff amount); use the U.S. Rule. (Do not round intermediate calculations. Roundyour answer to the nearest cent.)
Shawn Bixby borrowed $29,000 on a 120-day, 8% note. After 55 days, Shawn paid $3,200 on the note. On day 95, Shawn paid an additional $5,200. Use ordinary interest. a. Determine the total interest use the U.S. Rule. Note: Do not round intermediate calculations. Round your answer to the nearest cent. Total interest b. Determine the ending balance due use the U.S. Rule. Note: Do not round intermediate calculations. Round your answer to the nearest cent. Ending balance due
37) Joe discounted a bill of exchange face value OMR 6,000 with the bank, and bank charged a discount of OMR 300.What is the journal entry in the books of the bank?
Alana Olsen borrowed $5,000 for 90 days from First Bank. The bankdiscounted the note at 7 percent.a. What proceeds did Olsen receive?b. What is the effective rate to the nearest basis point?
Ms. Kim borrowed an amount from a bank but she only recieved from the bank P1,340. She promised to pay the principal at the end of 9 months. If the corresponding discount rate or often referred toas the banker's discount is 13.73%, what is the amount borrowed? P1,200 P1,250 P1,350 P1,500
a man borrowed P2000.000 from a bank and promised to pay the amount for 1 year. He received only the amount of P1920 after the bank, collected an advance interest of P80.00. Determine: interest rate rate of discount difference between A&B
Shawn Bixby borrowed $37,000 on a 150-day, 10% note. After 70 days, Shawn paid $4,000 on the note. On day 101, Shawn paid an additional $6,000. Use ordinary interest. a. Determine the total interest use the U.S. Rule. Note: Do not round intermediate calculations. Round your answer to the nearest cent. Total interest b. Determine the ending balance due use the U.S. Rule. Note: Do not round intermediate calculations. Round your answer to the nearest cent. rch Ending balance due BM men ********* Go to 35°F Cl
Juan dela Cruz borrowed money from a bank. He received P1, 340 and promised to pay P1, 500 at the end of 9 months. Determine the following:The rate of simple interest.The corresponding discount rate.
nt Shawn Bixby borrowed $25,000 on a 120-day, 15% note. After 60 days, Shawn paid $2,800 on the note. On day 96, Shawn paid an additional $4,800. Use ordinary interest. a. Determine the total interest use the U.S. Rule. Note: Do not round intermediate calculations. Round your answer to the nearest cent. Total interest b. Determine the ending balance due use the U.S. Rule. Note: Do not round intermediate calculations. Round your answer to the nearest cent. Ending balance due
Shiela signs a PhP4,500 discount note. The bank charges 18% discount rate and the proceeds are PHP3,487.50. Find the term of the note? A. 1 year and 3 months B. 1 year and 4 months C. 1 year and 5 months Answer:
It is the practice of almost all banks in the Philippines that when they grant a loan, the interest for one year is automatically deducted from the principal amount upon release of money to a borrower. Let us therefore assume that you applied for a loan with a bank and the P80,000 was approved at an interest rate of 14% of which P11,200 was deducted and you were given a check of P68,800. Since you have to pay the amount of P80,000 one year after, what then will be the effective interest rate? A. 16.02 % B. 16.28 % C. 16.32 % D. 16.47 % What is the ordinary interest on P1,500.50 for 182 days at 5.2%? A. P39.01 B. P39.82 C. P39.45 D. P39.99
4. What is the purpose of a bridge loan? 5. Distinguish between bank discount and simple interest.6. Differentiate between a stated rate of interest and an effective rate of interest. 7. What is the significance of finding the internal rate of return (IRR)? 8. Jill Kramer borrowed $25,000 to pay for a startup business. Jill must repay the loan at the end of five months in one payment with a 6 percent simple interest rate.What is the total amount that Jill must repay in five months?How much interest does Jill repay?9. Joe Jones went to his bank to find out how long it will take for $1,000 to amount to $1,350 at 9 percent simple interest. Solve Joe's problem.