Question

Cullumber Company receives a $87,000, 4-year note bearing interest of 6% (paid annually) from a customer...



Cullumber Company receives a $87,000, 4-year note bearing interest of 6% (paid annually) from a customer at a time when the discount rate is 8%.

Click here to view the factor table.

(For calculation purposes, use 5 decimal places as displayed in the factor table provided.)

What is the present value of the note received by Cullumber? (Round answer to 2 decimal places, e.g. 25.25.)

Present value of note received

$enter the present value of the note received in dollars rounded to 2 decimal places
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Solution:

Present value of the note received by Cullumber = $ 81,236.90

Calculation:

Present value of interest $           17,289.30
[87000*6/100*3.31212 PV annuity factor (8%, 4 years, annually interst)]
Present value of the notes $           63,947.60
[87000*0.73503 PV ordinary factor (8%, 4 years)]
Present Value of Note Received $           81,236.90
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Sheridan Company receives a $80,000, 9-year note bearing interest of 10% (paid annually) from a customer...
Sheridan Company receives a $80,000, 9-year note bearing interest of 10% (paid annually) from a customer at a time when the discount rate is 11%. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) What is the present value of the note received by Sheridan? (Round answer to 2 decimal places, e.g. 25.25.) enter the present value of the note received in dollars rounded to 2 decimal places
Neymar Taco Company receives a $75,000, 6-year note bearing interest of 4% (paid annually) from a...
Neymar Taco Company receives a $75,000, 6-year note bearing interest of 4% (paid annually) from a customer at a time when the discount rate is 6%. What is the present value of the note received by Neymar? (Round answer to 2 decimal places, e.g. 25.25.)
Cullumber Company is about to issue $336,000 of 9-year bonds paying an 11% interest rate, with...
Cullumber Company is about to issue $336,000 of 9-year bonds paying an 11% interest rate, with interest payable annually. The discount rate for such securities is 10%. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) How much can Cullumber expect to receive for the sale of these bonds? (Round answer to 0 decimal places, e.g. 2,575.) Cullumber can expect to receive $enter a dollar amount to be...
Cullumber Company issues a 12%, 6-year mortgage note on January 1, 2017, to obtain financing for...
Cullumber Company issues a 12%, 6-year mortgage note on January 1, 2017, to obtain financing for new equipment. Land is used as collateral for the note. The terms provide for semiannual installment payments of $49,100. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) What are the cash proceeds received from the issuance of the note? (Round answer to 2 decimal places, e.g. 25.25.)
vanhoe Company is about to issue $344,000 of 6-year bonds paying an 11% interest rate, with...
vanhoe Company is about to issue $344,000 of 6-year bonds paying an 11% interest rate, with interest payable annually. The discount rate for such securities is 10%. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) How much can Ivanhoe expect to receive for the sale of these bonds? (Round answer to 0 decimal places, e.g. 2,575.) Ivanhoe can expect to receive $enter a dollar amount to be...
Wildhorse Co. earns 9% on an investment that will return $530,000 9 years from now. Click...
Wildhorse Co. earns 9% on an investment that will return $530,000 9 years from now. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) What is the amount Wildhorse should invest now to earn this rate of return? (Round answer to 2 decimal places, e.g. 5,275.25.) Wildhorse Co. should invest $enter an amount to be invested in dollars rounded to 2 decimal places Blossom Company earns 4% on...
Sunland Company issued 6%, 9-year, $290,000 par value bonds that pay interest annually on April 1....
Sunland Company issued 6%, 9-year, $290,000 par value bonds that pay interest annually on April 1. The bonds are dated April 1, 2022, and are issued on that date. The discount rate of interest for such bonds on April 1, 2022, is 8%. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) What cash proceeds did Sunland receive from issuance of the bonds? (Round answer to 0 decimal...
(a) What is the present value of $29,400 due 8 periods from now, discounted at 6%?...
(a) What is the present value of $29,400 due 8 periods from now, discounted at 6%? (Round answer to 2 decimal places, e.g. 25.25.) (b) What is the present value of $29,400 to be received at the end of each of 12 periods, discounted at 12%? (Round answer to 2 decimal places, e.g. 25.25.) ------------------ Ivanhoe Company is about to issue $298,700 of 6-year bonds paying an 11% interest rate, with interest payable semiannually. The discount rate for such securities...
Joanne Quick made an investment of $23,016.97. From this investment, she will receive $2,600 annually for...
Joanne Quick made an investment of $23,016.97. From this investment, she will receive $2,600 annually for the next 13 years starting one year from now. Click here to view the factor table Future Value of 1 Click here to view the factor table Future Value of an Annuity of 1 Click here to view the factor table Present Value of 1 Click here to view the factor table Present Value of an Annuity of 1 (For calculation purposes, use 5...
Sunland Company is about to issue $450,000 of 10-year bonds paying an 11% interest rate, with...
Sunland Company is about to issue $450,000 of 10-year bonds paying an 11% interest rate, with interest payable annually. The discount rate for such securities is 13%. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) In this case, how much can Sunland expect to receive from the sale of these bonds? (Round answer to 0 decimal places, e.g. 2,575.)
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT