Determine the maturity value of the note

Assignment Help Accounting Basics
Reference no: EM13534938

Suppose the lender does not refer to an annual interest rate and does not refer to the amount you borrow. You sign a legal instrument (probably a promissory note) that calls for the payment of $106,000 at the maturity date of the loan (one year later). The bank puts $100,000 in your checking account today. Is the annual interest rate on this loan still 6 percent?

Suppose your company borrows $500,000 from a bank, and that amount is deposited in your checking account today. The note that you sign calls for a 6.25 percent annual interest rate. Determine the maturity value (the amount you will pay the bank when the note comes due then) of the note one year from now.

Reference no: EM13534938

Questions Cloud

Find the angle that the hill makes with the horizontal : A child slides down a snow-covered slope on a sled. At the top of the hill, her mother gives her a push at a speed of 1.5 m/s to get her started. find the angle that the hill makes with the horizontal
Idea of synapses : Briefly explain in 3-5 sentences explaining why an adult'sbody/mind can operate and function at a high level and why a baby'scannot due to the idea of synapses.
What fraction of the whole chromosome do genes occupy : The700 genes on chromosome 22 (48Mb) average 19000bp in length and onaverage contain 5.4 exons, each which average266bp. On average, what fraction of each genesequence is converted to mRNA? What fraction of the whole chromosome do genes occupy?
Rate of sugar transport in the phloem : Which factor does not greatly influence the rate of sugar transport in the phloem?
Determine the maturity value of the note : Determine the maturity value of the note one year from now amount is deposited in your checking account today.
Off-balance sheet financing and bonds : Off-Balance Sheet Financing and Bonds
Electron transportchain-oxidative phosphorylation : As the body temperature increases, the body produces sweat. Which of the following is true about the electron transportchain/oxidative phosphorylation:
Estimate what is the final temperature of the mixture : A 65-g ice cube at 0°C is placed in 874 g of water at 23°C. What is the final temperature of the mixture
Determine how many kilograms of water are needed : It is desired to cool iron parts from 500°F to 100°F by dropping them into water that is initially at 55°F. how many kilograms of water are needed per kilogram of iron

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

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