What is the implied effective annual interest rate r

Assignment Help Accounting Basics

Reference no: EM132648285

Question 1: Dave has debts of 1300 due new and 1356 due tvvo years from now. He proposes to repay them with a single payment of 2656 one year from now. What is the implied effective annual interest rate r if the replacement payment is accepted as equivalent to the original debts? What is the present value A of the debts?

Reference no: EM132648285

Questions Cloud

Measurement process in an organizations strategy : Provide an example of a company that has changed its measurement process due to globalization. What changes were made to the company's measurement process?

Assignment on transfer pricing : Zanello Inc., manufacturer of home appliances, is organized along decentralized lines, with each manufacturing division operating as a separate profit center

How much is Magdalena basis in the inventory received : The distribution results in a liquidation of both the partnership and her interest. How much is Magdalena's basis in the inventory received

How much gain or loss does Bruno recognize : How much gain or loss does Bruno recognize, and what is his basis in the inventory and land received in the distribution

What is the implied effective annual interest rate r : What is the implied effective annual interest rate r if the replacement payment is accepted as equivalent to the original debts? What is the present value A?

Calculate total receipts from debtors and total purchases : For the year ending 30 November 2009, calculate total receipts from debtors and total purchases, all of which will be on credit.

How much is Pablo realized and recognized gain : Pablo has a $63,000 basis in his partnership interest. How much is Pablo's realized and recognized gain on the distribution

What is the amount of any gain or loss Lola recognizes : What is the amount of any gain or loss Lola recognizes as a result of this distribution? What is her basis in the LLC interest

How to obtain industry averages for commonly used ratios : How to Obtain industry averages for commonly used ratios in the current period. Industry average information is reported by industry title or SIC code.

User Account

All Pages