Question

Joan was advanced 3 loans: $6814.29 at the start of January, $8985.82 at the start of...

Joan was advanced 3 loans: $6814.29 at the start of January, $8985.82 at the start of February and $9559.59 at the start of April. She expects to repay these debts with three equal payments: one at the start of September, one at the start of October and one at the start of December. Suppose the Simple Interest rate is 5.5%. Use the start of October as a focal date.

What is the total value of the debt (loan) at the focal date?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Value of the Loan taken on january with interest at start of october = 6814.29+(6814.29*9/12*5.5%)= $ 7095.38

Value of the Loan taken on Feb with interest at start of october = 8985.82+(8985.82*8/12*5.5%) = $ 9315.30

Value of the Loan taken on April with interest at start of october = 9559.59+(9559.59*6/12*5.5%) = $ 9822.48

Therefore, total value of the loan at start of the Oct = 7064.15+9274.12+9778.66 = $ 26,233.16

Note: Used October start as a focal point. so, calculated interest till that date.

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
On April​ 3, the Mears Flag Company borrowed $14,000 to pay for​ start-up costs for its...
On April​ 3, the Mears Flag Company borrowed $14,000 to pay for​ start-up costs for its new Showroom. The loan had a simple interest rate of 8.25% and was for 210 days. The company was able to make partial payments of ​$7000 on May 28 and ​$4500 on October 12. How much will the company owe on the date of​ maturity? Assume 360 days in a year.
Problem 8-3 Simple Moving Averages (LO4, CFA1) The table below shows the closing monthly stock prices...
Problem 8-3 Simple Moving Averages (LO4, CFA1) The table below shows the closing monthly stock prices for IBM and Amazon. Calculate the simple three-month moving average for each month for both companies. (Input all amounts as positive values. Do not round intermediate calculations. Round your answers to 2 decimal places.) IBM AMZN January $ 174.44 $ 611.96 February 176.49 622.04 March 190.21 575.48 April 206.45 547.30 May 192.85 512.38 June 208.17 496.78 July 233.16 606.09 August 205.39 537.36 September 220.07...
Question 1. .Scheduled payments of $400 due now and $700 due in five months are to...
Question 1. .Scheduled payments of $400 due now and $700 due in five months are to be settled by a payment of $500 in three months and a final payment in eight months. Determine the amount of the final payment at 6% p.a., using eight months from now as the focal date. Question 2. Two amounts owing from the past were to be paid today. One debt was $620 from one year ago and the other was $925 from six...
Suppose that it is January, and your bank makes a $1 million loan with a one-year...
Suppose that it is January, and your bank makes a $1 million loan with a one-year maturity and carries 4% fixed interest rate. The bank initially finances the loan by issuing a $1 million 3-month Eurodollar CD paying 2.5%. After the first three months, the bank expects to finance the loan by issuing another $1 million 3-month Eurodollar CD in April (assume the rate becomes 2.9%), and another $1 million 3-month Eurodollar CD in June (assume the rate becomes 2.4%),...
Problem 16-14 Cash Budgeting Dorothy Koehl recently leased space in the Southside Mall and opened a...
Problem 16-14 Cash Budgeting Dorothy Koehl recently leased space in the Southside Mall and opened a new business, Koehl's Doll Shop. Business has been good, but Koehl has frequently run out of cash. This has necessitated late payment on certain orders, which is beginning to cause a problem with suppliers. Koehl plans to borrow from the bank to have cash ready as needed, but first she needs a forecast of just how much she must borrow. Accordingly, she has asked...
Flexible Budget, Multiple Regression The controller for Muir Company's Salem plant is analyzing overhead in order...
Flexible Budget, Multiple Regression The controller for Muir Company's Salem plant is analyzing overhead in order to determine appropriate drivers for use in flexible budgeting. She decided to concentrate on the past 12 months since that time period was one in which there was little important change in technology, product lines, and so on. Data on overhead costs, number of machine hours, number of setups, and number of purchase orders are in the following table. Month Overhead Costs Machine Hours...
1. Calculate the nominal annual cost of trade credit under each of the following terms. Assume...
1. Calculate the nominal annual cost of trade credit under each of the following terms. Assume a 365-day year. Do not round intermediate calculations. Round your answers to two decimal places. 1/15, net 25.   % 2/10, net 55.   % 3/10, net 45.   % 2/10, net 45.   % 2/15, net 40.   % 2. Dorothy Koehl recently leased space in the Southside Mall and opened a new business, Koehl's Doll Shop. Business has been good, but Koehl frequently runs out of cash....
You were recently hired by LW’s Bottle Emporium Ltd. (“LW”) as financial controller. LW sells a...
You were recently hired by LW’s Bottle Emporium Ltd. (“LW”) as financial controller. LW sells a high-end set of baby bottles including various sizes to meet the child’s needs throughout their early years. One of your first tasks is to prepare the master budget for the fourth quarter of 2020. To assist you in the preparation of the budget, and supporting schedules, you have been provided with the following information: As of September 30, 2020 LW had the following balance...
1. Prepare a sales budget for January through May. The selling price per unit is $40.00....
1. Prepare a sales budget for January through May. The selling price per unit is $40.00. December of the previous year-40,000 January-90,000 February-80,000 March-70,000 April-40,000 2. Prepare a purchases budget for January through March, and the first quarter in total. Assume that the company only sells one product that can be purchased at $15.00 per unit. The market for this product is very competitive and customers highly value service such as quality and on time delivery of the product. Also...
Suppose in January 2006 you conducted a study in a subsidized housing community in the Boerum...
Suppose in January 2006 you conducted a study in a subsidized housing community in the Boerum Hill section of Brooklyn, NY. You enrolled 1000 residents in your study and checked on their tuberculosis (TB) status on a monthly basis. At the start of your study on January 1st, screening of the entire study population revealed that 25 of the healthy residents were immigrants who were vaccinated for TB and so were not at risk. Another 45 residents already had existing...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT