What is the annual payment Sam must make to pay back

Assignment Help Accounting Basics
Reference no: EM132514192

Question -

Q1. John Jamison wants to accumulate $77,961 for a down payment on a small business. He will invest $39,000 today in a bank account paying 8% interest compounded annually. Approximately how long will it take John to reach his goal?

Q2. The Jasmine Tea Company purchased merchandise from a supplier for $46,676. Payment was a noninterest-bearing note requiring Jasmine to make five annual payments of $12,000 beginning one year from the date of purchase. What is the interest rate implicit in this agreement?

Q3. Sam Robinson borrowed $21,000 from a friend and promised to pay the loan in 10 equal annual installments beginning one year from the date of the loan. Sam's friend would like to be reimbursed for the time value of money at a 9% annual rate. What is the annual payment Sam must make to pay back his friend?

Reference no: EM132514192

Questions Cloud

Construct a daily diet and exercise plan : Construct a daily diet and exercise plan for someone who is overweight and suffers from high cholesterol.
Construct a daily diet and exercise plan : Construct a daily diet and exercise plan for someone who is overweight and suffers from high cholesterol.
Find what is annual volume that would make the company : Assume that machine A has already been purchased. Is it preferable to use machine A to make the switches or to purchase the switches.
What does the literature say about the problem : In Week 7 of this course, the student will submit an original 15-20 page Research Paper based upon a current problem or trend in cyber crime today.
What is the annual payment Sam must make to pay back : Sam's friend would like to be reimbursed for the time value of money at a 9% annual rate. What is the annual payment Sam must make to pay back his friend
Network security assignment : Distributed vs. centralized computer systems and why your department chose to be distributed/centralized.
What economic denominator drives the company : Using the Hedgehog Concept, Collins argued that leaders are hedgehogs, not foxes. Foxes are good at many things. Hedgehogs are good at 1 big thing and are able.
Endorsing basal reading and literature : Based upon your evaluative report, what rationale would you use in endorsing basal reading and literature based programs for your school?
What amount of interest excluded from Elsner gross income : Assuming Elsner's qualified higher education expenses total $9,000, what amount of interest can be excluded from Elsner's gross income

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