Drake Company sold a 5-year, zero-interest-bearing $36,000 note receivable to Glenn Inc. Glenn wishes to earn 10% over the remaining 4 years of the note. How much cash will Drake receive upon sale of the note?
Answer to relevant QuestionsDelgado Company issues a 3-year, zero-interest-bearing $60,000 note. The interest rate used to discount the zero-interest-bearing note is 8%. What are the cash proceeds that Delgado Company should receive?Lewis Company receives a $75,000, 6-year note bearing interest of 8% (paid annually) from a customer at a time when the discount rate is 9%. What is the present value of the note received by Lewis Company?Natasha Anapova purchased an investment for $11,469.92. From this investment, she will receive $1,000 annually for the next 20 years, starting one year from now. What rate of interest will Natasha’s investment be earning ...Alamos Corporation is considering purchasing bonds of Garcia Company as an investment. The bonds have a face value of $40,000 with a 10% interest rate. The bonds mature in 4 years and pay interest ...Heather Kemp asks your help concerning an NSF check. Explain to Heather (a) What an NSF check is, (b) How it is treated in a bank reconciliation, (c) Whether it will require an adjusting entry.
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