Question: Compute the amount that can be borrowed under each of the following circumstances: 1. A promise to repay $90,000 seven years from now at an

Compute the amount that can be borrowed under each of the following circumstances:
1. A promise to repay $90,000 seven years from now at an interest rate of 6%.
2. An agreement made on February 1, 2008, to make three separate payments of $20,000 on February 1 of 2009, 2010, and 2011. The annual interest rate is 10%.

Step by Step Solution

★★★★★

3.35 Rating (167 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

1 90000 x 06651 usin... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

115-B-A-T-V-M (359).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

A company borrowed $180,000 at an interest rate of 9% compounded annually over six years. The loan will be repaid in installments at the end of each year according to the accompanying repayment...

A bank offers a $25,000 loan at an interest rate of 7.7% that can be paid back over 2 to 10 years. a. Write the monthly payment formula for this loan situation. Let t represent the number of years...

How much invested now at an interest rate of 9% compounded annually would be just sufficient to provide three payments as follows: the first payment in the amount of $3,000 occurring two years from...

Compute the amount that can be borrowed under each of the following circumstances: 1. A promise to repay $90,000 seven years from now at an interest rate of 6%. 2. An agreement made on February 1,...

CII, Incorporated, invests $780,000 in a project expected to earn a 10% annual rate of return. The earnings will be reinvested in the project each year until the entire investment is liquidated 13...

I need help with these questions. On January 1, a company agrees to pay $14,000 in seven years. If the annual interest rate is 7%, determine how much cash the company can borrow with this agreement....

help please Table B.1* Present Value of 1 p=1/(d+i)n Table B..2'Future Value of 1 f=(1+i)n Table B.3'Present Value of an Annuity of 1 p=[11/(1+i)) Table B.AlFuture Value of an Annaity of 1...

need help please. Provided are links to the present and future value tables: (PV of \$1. EV of \$1. PVA of \$1, and EVA of \$1) (Use appropriate factor(s) from the tables provided.) a. How much would...

What is the difference between a fixed asset and an intangible asset?

A bond has a coupon rate of 9% p.a. The coupons are paid every 6 months. The bond has a $1,000 face value and is priced at par value. The bond has 16 years to maturity. If interest rates suddenly...

How does the bottom portion of Figure 23.3, showing the international flow of investments and capital, differ from the upper portion?

The following information pertains to a by-product called Moy: Sales in 2009 5,000 units Selling price per unit $6 Selling costs per unit 2 Processing costs 0 Inventory of Moy was recorded at net...

Sedona Company set the following standard costs for one unit of its product for 2013. Direct material (20 Ibs. @ $ 2.50 per Ib.) . . . . . . . . . . . . . . . . . . . $ 50.00 Direct labor (10 hrs. @...

Refer to Exercise 23-8. Hart Company records standard costs in its accounts and its material variances in separate accounts when it assigns materials costs to the Goods in Process Inventory account....

World Company expects to operate at 80% of its productive capacity of 50,000 units per month. At this planned level, the company expects to use 25,000 standard hours of direct labor. Overhead is...

Estimating the cash flow generated by $1 invested in a project The profitability index (PI) is a capital budgeting tool that is defined as the present value of a project's cash inflows divided by the...

Business will have a fixed costs of $750,000 per year. It plans on selling one product that will have a variable cost of $20 per unit. What is the products selling price to break-even? Values Selling...

The comparative financial statements of Bettancort Inc. are as follows. The market price of Bettancort Inc. common stock was $71.25 on December 31, 2016. Bettancort Inc. Comparative Retained Earnings...