Question: $7500 was borrowed for a four-year term at 9% compounded quarterly. The terms of the loan allow prepayment of the loan based on discounting the

$7500 was borrowed for a four-year term at 9% compounded quarterly. The terms of the loan allow prepayment of the loan based on discounting the loan’s maturity value at 7% compounded quarterly. How long (to the nearest day) before the maturity date was the loan prepaid if the payout amount was $9380.24 including accrued interest? For the purpose of determining the number of days in a partial calendar quarter, assume that a full quarter has 91 days.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

The 938024payout figure represents the present value on the prepayment date ... 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

Students Have Also Explored These Related Accounting Questions!

$7500 was borrowed for a four-year term at 9% compounded quarterly. The terms of the loan allow prepayment of the loan based on discounting the loans maturity value at 7% compounded quarterly. How...

Hello! Can you help me to answer these questions? Thank you 1. A demand loan of $4000.00 is repaid by payments of $1500.00 after two years, $1500.00 after four years, and a final payment after eight...

1:07 alla Ejercicios- INTERESES DOCX - 18 KB The Habender Company just issued a two-year bond at 12% Inflation is expected to be 4% next year and 6% the year after. Habender estimates its default...

1. The Malia corporation had sales in 2015 of $68 million, total asset of $47 million, and total liabilities of $19 million. The interest rate on the company's debt is 6.5% and its tax rate is 30%....

PowerPoint Assignment for BUS 401: Principles of Finance You have been asked by a manager in your organization to put together a training program explaining Net Present Value (NPV) and Future Value...

Can someone help me with this? I need it by tomorrow chapter 2 Issues in Accounting for Corporate Debt and Equity istockphoto Learning Objectives Be able to articulate the advantages and...

please help me. I can pay only 70 dollars in this assignment Topic 1 & 2 Introduction to financial management and the Australian Taxation system Financial Markets 2 Learning Objectives Describe what...

Listen to the following videos and then complete the assignments using the changed numbers on the guidance report. Place your answers on the guidance report. Open the Guidance Report and rework the...

please help me in 70 dollars to do this assignment iin APA style referencing Topic 1 & 2 Introduction to financial management and the Australian Taxation system Financial Markets 2 Learning...

Assume the following are the fiscal year income statement and balance sheet of Whole Foods Market, Inc. Income Statement ($ thousands) 2016 $4,701,289 3,052,184 1,649,105 1,223,473 158,864 37,035...

Corporations face the following corporate tax schedule: Taxable Income Tax on Base $0-$50,000 $0 - 15% $50,000 $75,000 7,500 $75,000 $100,000 13,750 34% $100,000 $335,000 22,250 39% Company Z has...

The accrual method of accounting recognizes revenue when _ _ _ _ , and recognizes expenses when _ _ _ _ . Question 5 Select one: a . they are earned; cash is paid b . cash is received; they are...

For the functions defined as follows, find the Taylor polynomials of degree 4 at 0. f(x) = x + 16 Vx

Alpha Co. capital balances are: Ace $30,000, Bly $25,000, and Cox $20,000. The partners share income equally. Day is admitted to the firm by purchasing one-half of Coxs interest for $13,000....

In Decker Co., capital balances are Menke $40,000 and Hibbett $50,000.The partners share income equally. Kosko is admitted to the firm with a 45% interest by an investment of cash of $52,000....

Capital balances in Midway Co. are Messer $40,000, Isch $30,000, and Denny $18,000. Messer and Isch each agree to pay Denny $12,000 from their personal assets. Messer and Isch each receive 50% of...

If fixed costs are $300,000, the unit selling price is $25, and the unit variable costs are $20, what is the break- even sales (units) if the variable costs are decreased by $5? 42,857 units O 17,143...

Anton Company uses the perpetual inventory method. Anton purchased 1,040 units of inventory that cost $6 each. At a later date the company purchased an additional 1,080 units of inventory that cost...

Presented below is information related to Blue Company. Cost Retail Beginning inventory $379,557 $275,000 Purchases 1,356,000 2,161,000 Markups 94,700 Markup cancellations 15,400 Markdowns 36,700...