The bank receives interest on the loan at 10 convertible

Assignment Help Accounting Basics
Reference no: EM13483544

Mr.Jones borrows $25, 000 from Bank B for 10 years. He makes semiannual payments of $2, 000. The bank receives interest on the loan at 10% convertible semiannually during the first five years and at 8% convertible semi- annually for the last five years. The balance of each payment is invested in the sinking fund earning 7% convertible semiannually. At the end of 10th year by what amount will the sinking fund be short of repaying the loan?

Reference no: EM13483544

Questions Cloud

The company has some unused equipment that it currently : sailcloth amp more currently produces boat sails and is considering expanding its operations to include awnings for
Ashley has received a large inheritance from her : ashley has received a large inheritance from her grandmother and wants to put aside enough money to pay for her childs
The loan of 15 000 is being repaid by 10 monthly : the loan of 15 000 is being repaid by 10 monthly installments with the first 5 payments of x and the last 5 payments of
Imagine you are the cfo of ibm you have been successful : imagine you are the cfo of ibm. you have been successful over the years but are now concerned about how many sources of
The bank receives interest on the loan at 10 convertible : mr.jones borrows 25 000 from bank b for 10 years. he makes semiannual payments of 2 000. the bank receives interest on
How do you use degree of operating leverage to determine : pampq company has provided you the following information. monthly fixed expenses are 5000 usd and variable expenses per
Suppose that microsoft is considering changing its capital : suppose that microsoft is considering changing its capital structure in light of the tough business environment.
A loan is being repaid by 15 annual installments of 1 000 : a loan is being repaid by 15 annual installments of 1 000 each. interest is at an effective rate of 5. immediately
What percentage increase in sales would result in no : xyz company sold 30000 units last month and sales totaled 1500000 usd. total variable monthly expenses were 600000 and

Reviews

Write a Review

Accounting Basics Questions & Answers

  What expense should be recorded for 2012 as a result

A company buys an oil rig for $2,000,000 on January 1, 2012. The life of the rig is 10 years and the expected cost to dismantle the rig at the end of 10 years is $400,000 (present value at 10% is $154,220). 10% is an appropriate interest rate for ..

  Evaluate and comment on both the immediate

Indicate increase (+), decrease (-), or no effect (NE). Make sure your answer is CLEAR in terms of all items below (1-13) and that you make an entry for EACH column (Net Income, Cash From Operations, and Cash Position).

  Benefit to prepare financial statements on accrual basis

After reviewing Mr. Donaldson's accounting information, you are about to write a business memo to Mr. Donaldson. In the memo, you should compare cash-based operating cash flows with accrual-based net income and explain why it is of Mr. Donaldso..

  Warrens earnings per share

On March 1, 2009, Warren sold 30 million common shares. In keeping with its long-term share repurchase plan, 2 million shares were retired on June 30. Warren's net income for the year ended December 31, 2009, was $1,050,000,000. The income tax rat..

  Benefit of limited liability

Which of the following enjoys the benefit of limited liability?

  For each of the following cases indicate why management and

for each of the following cases indicate why management and the auditors determined that control

  Type of business determine appropriate information system

When considering the impact of the information age on business, what are some issues business owners should address in deciding to use information technology. Would the type of business determine the appropriate information system?

  Interest in capital of the partnership

What is the difference in treatment when an incoming partner purchases an interest by agreeing to perform services for the partnership and the partnership (1) gives a 25% interest in the capital of the partnership,

  Is the wacc an average concept or a marginal concept

Is the WACC an average concept or a marginal concept in your opinion? Should we use the historical WACC or the marginal WACC as the appropriate rate to use in capital budgeting analyses?

  Define the following persons'' role in an agency

Explain the difference between the role of the Account Executive and the Account Planner within an agency Define the following persons' role in an agency

  Composition of the risky portfolio

Now add a set of indifference curves and illustrate how an investor's optimal portfolio is some combination of the risky portfolio and the risk-free asset. What is the composition of the risky portfolio?

  Despite commonly held beliefs regarding the popularity of

despite commonly held beliefs regarding the popularity of presidents presidents are elected by electoral college. this

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