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Questions - Using annuity formulas
1) A $20,000 promissory note is issued on June 12 for a five-month term carrying an annual interest rate of 5.5%. Calculate the maturity value of the note.
2) Your company paid an invoice five months late. If the original invoice was for $6,450 and the amount paid was $6,948.48, what monthly compounded interest rate is your supplier charging on late payments?
3) Determine the proceeds of the sale on a six-year interest-bearing promissory note for $5,750 at 6.9% compounded monthly, discounted two years and three months before its due date at a discount rate of 9.9% compounded quarterly.
Evaluate Method of measuring costs associated with production, budgeting process, normal job-order costing system , master budget, cycle time.
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