User Account

All Pages

Calculate the amount of the interest expense for each option

Assignment Help Accounting Basics
Reference no: EM131002631

Evaluating Alternative Notes

A borrower has two alternatives for a loan: (1) issue a $660,000, 90-day, 9% note or (2) issue a $660,000, 90-day note that the creditor discounts at 9%. Assume a 360-day year.

a.  Calculate the amount of the interest expense for each option.

$ for each alternative.

b.  Determine the proceeds received by the borrower in each situation.

(1) $660,000, 90-day, 9% simple-interest ______________$

(2) $660,000, 90-day note discounted at 9% ____________$

Reference no: EM131002631

Questions Cloud

What is the probability that it will not rain today : A tv weat man reports a 35% chance of rain today. What is the probability that it will not rain today? Explain
Demand causation equals to suppy causation : Kelly went to watch her school's basketball game. She found that the height of basketball players is taller than the average height of her school's students. So she concludes that if you play basketball, you will be taller. What mistake she made in h..
What are the obligations or debts : What are the obligations or debts that a business must pay in cash or in goods and services at some future time because of past transactions or events called and how are they reported?
Therefore governed by the uniform commercial code : Joe was diagnosed as having advanced brain cancer and the doctors believed that he had only a few days to live. He told Susan, his girlfriend, that he wanted her to have his car when he died. Susan immediately took possession of the car. As it turns ..
Calculate the amount of the interest expense for each option : A borrower has two alternatives for a loan: (1) issue a $660,000, 90-day, 9% note or (2) issue a $660,000, 90-day note that the creditor discounts at 9%. Assume a 360-day year. Calculate the amount of the interest expense for each option. Determine t..
Prepare a schedule that shows the epbo and the apbo : Prepare a schedule that shows the EPBO, the APBO, the service cost, the interest cost, and the postretirement benefit expense for each of the years 2011-2018.
Blood pressure is normally distributed random variable : Jim's systolic blood pressure is normally distributed random variable with a mean of 145 mmHg and a standard deviation of 20 mmHg. If Jim's systolic blood pressure is taken at a randomly chosen moment, what is the probability that it will be between ..
Solved through conciliation-arbitration and litigation : Although successfully positioning a new product in a well-established market may seem difficult, Method Products shows that it is not impossible (Kotler & Keller, 2012). Keeping in mind the international legal environment, find an article using the o..
Write report on financial coverage of financial securities : Recently the social networking site Facebook had a successful Initial Public Offering (IPO) of its business. Write a report on the financial coverage of the financial securities

Reviews

Write a Review

Accounting Basics Questions & Answers

  Rate of roa during the three-year period

What are the likely reasons for the changes in Walmart's rate of ROA during the three-year period? Analyze the financial ratios to the maximum depth possible.

  Determine the adjusted cash balance per bank

cashbalance per bank $6,950; outstanding checks $762; deposits intransit $1,700; and a bank service charge $20. Determine theadjusted cash balance per bank at August 31, 2005.

  Questionnbspon january 1 a company issues bonds with a par

questionnbspon january 1 a company issues bonds with a par value of 300000. the bonds mature in 5 years and pay 8

  Section1 which of the following is ordinarily considered an

section1. which of the following is ordinarily considered an extended procedure in external auditors independent audits

  Exchange rate relationships between the us dollar and the

exchange rate relationships between the u.s. dollar and the euro have been quite volatile. when the euro began trading

  If a firm has the highest priceearnings ratio of any firm

if a firm has the highest priceearnings ratio of any firm in its industry then other things held constant this suggests

  In the direct labor variance matrix there are three

in the direct labor variance matrix there are three factors 1 actual hours actual rate 2 actual hours standard rate and

  Wall street journal indicating that companies are selling

wall street journal indicating that companies are selling their receivables at a record rate. discuss the reasons why a

  It cost a contractor 9765 to manufacture their first unit

it cost a contractor 9765 to manufacture their first unit. the company expects to experience an 88 unit learning curve.

  Estimate the fcfe

Tech Products reported a net loss of $80 million for the latest financial year. In addition, the firm reported a net capital expenditure of $70 million, and a change in noncash working capital of $10 million. Finally, the firm had $10 million in d..

  Determining receipt of the cash and notes

How will Wren Corporation be taxed on the distribution? How will Adam be taxed on his receipt of the cash and notes?

  Create an entity-relationship diagram

Refer back to all of the assignments you have completed related to Reliable Pharmaceutical Supply. Read the following specifications and answer the questions in an eight to ten (8-10) page paper.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd