Simon takes a loan from Ayanda to the value of R25 000 to start up a...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Simon takes a loan from Ayanda to the value of R25 000 to start up a new business. Ayanda charges him interest at 12% per annum compounded semi-annually. Three years after he took out the loan, Simon repays an amount of R12 000. Ayanda then changes the loan agreement and charges Simon interest at the rate of 15% per annum compounded monthly for a further 2 years. At the end of the first year of this new agreement, Simon borrows a further R10 000. Draw a time-line for the loan as described above. Calculate the amount of money that Simon owes after 5 years. Simon takes a loan from Ayanda to the value of R25 000 to start up a new business. Ayanda charges him interest at 12% per annum compounded semi-annually. Three years after he took out the loan, Simon repays an amount of R12 000. Ayanda then changes the loan agreement and charges Simon interest at the rate of 15% per annum compounded monthly for a further 2 years. At the end of the first year of this new agreement, Simon borrows a further R10 000. Draw a time-line for the loan as described above. Calculate the amount of money that Simon owes after 5 years.
Expert Answer:
Answer rating: 100% (QA)
SOLUTION To calculate the amount of money that Simon owes after 5 years we need to break down the lo... View the full answer
Related Book For
Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
Posted Date:
Students also viewed these finance questions
-
Cherry Blossom Products Inc. produces and sells yoga-training products: how-to DVDS and a basic equipment set (blocks, strap, and small pillows). Last year, Cherry Blossom Products sold 13,500 +DVDs...
-
KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...
-
It is January 20, Year 13. Mr. Neely, a partner in your office, wants to see you, CPA, about Bruin Car Parts Inc. (BCP), a client req_uiring assistance. BCP prepares its financial statements in...
-
Junes Garden Supplies purchases merchandise on account from Lawn Supplies, Inc. The list price is $1,600, with a trade discount of 25 percent, terms 1/10, n/30. Junes Garden Supplies pays the amount...
-
Consider the following hypothesis test: H0: u u is less than or equal to 50 Ha: u > 50 A sample of 60 is used and the population standard deviation is 8. Use the critical value approach to state your...
-
The starting time of a class is uniformly distributed between 10:00 and 10:05. If a student arrives early and has to wait t minutes for the class to start, then the student incurs a penalty of A1t,...
-
The accounting records for ADR, Inc., reflected the following amounts at the end of August 2010: Prepare ADRs multi-step income statement for the fiscal year ended August 31,2010. Cash...... $3,500...
-
Nuke-It-Now manufactures microwave ovens. The following represents the financial information from one of its manufacturing plants for two years. Required a. Classify these items into prevention (P),...
-
Project 5K: Make 4 Journal Entries to close the books The following selected accounts and normal balances existed at year-end. Notice that expenses exceed revenue in this period. Make the four...
-
Frito-Lay Inc. manufactures convenience foods, including potato chips and corn chips. Production of corn chips occurs in four departments: Cleaning, Mixing, Cooking, and Drying and Packaging....
-
4. calculate the matrix multiplication A*B,where 1 1 1 1 2 3 456 A = 0 1 1 B = 0 0 1 7 8 9 1 2 3 056 009 100 450 7 89 12 15 18 11 13 15 7 89 12 11 7 15 13 8 18 15 9 (A) (B) (C) (D) [ [
-
Part 1: Your Initial Post For this discussion board, think of a movie you're familiar with that featured a romantic relationship. You may use any genre of movie for this discussion that provides an...
-
Joshua Herewini of Somerby Cottage, Shepreth Lane, Shepreth, Cambridgeshire, a retired aerial archaeologist, died last week aged eighty three. As one of the executors of his will, Juliet Lawrie, his...
-
On her way to work Tuesday, February 26, Ann Forrester ducked her head against the cold wind and stepped gingerly across the ice patches on Highway 328 to put a letter in the mailbox. Her husband,...
-
A narrow beam of monochromatic light enters diamond from air at an incident angle of 6 5 degrees. If the speed of light in air is 3 . 0 0 x 1 0 ^ 8 m / s and the speed of light in diamond is 1 . 2 4...
-
Croton Enterprises has worked out the activities, duration, and predecessors for its new project to create a new drink for the local Trinidad and Tobago market and for export to the Caribbean market....
-
Spud, Inc.a manufacturer of gourmet potato chips, employs activity-based costing. The budgeted data for each of the activity cost pools is provided below for the year 2020. Activity Cost Pools...
-
Using thermodynamic data from Appendix 4, calculate G at 258C for the process: 2SO 2 (g) + O 2 (g) 88n 2SO 3 (g) where all gases are at 1.00 atm pressure. Also calculate DG8 at 258C for this same...
-
A student develops a spending plan for a school semester. Is this budgeting? Why?
-
What is an opportunity cost?
-
Classification of variable and fixed costs Classify each of the following as a variable or fixed cost with respect to a unit of production: a. Salaries of production supervisors. b. Steel used in...
-
Fill in the Blank. In the finite element method, \(a(n)\) ___________ solution is assumed within each element.
-
The stiffness matrix of a bar element is given by a. \(\frac{E A}{l}\left[\begin{array}{ll}1 & 1 \\ 1 & 1\end{array} ight]\) b. \(\frac{E A}{l}\left[\begin{array}{rr}1 & -1 \\ -1 & 1\end{array}...
-
What is the basis for the derivation of transformation matrices?
Study smarter with the SolutionInn App