Question: 96. On July 1, 2014 Trolley & Train World borrowed money from their bank First Friendly National Bank by issuing a $25,000, 90 day, non

96. On July 1, 2014 Trolley & Train World borrowed money from their bank First Friendly National Bank by issuing a $25,000, 90 day, non interest bearing note. The note was discounted to 14%. Compute the following: 1) How much money did Trolley and Train World receive? 2) What was the total amount of interest paid? 3) What is the effective 90 day interest rate on this note (round to 4 decimals)? 4) What is the approximate annual effective interest rate on this note payable

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

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 Mathematics Questions!

1. Assume that firm B (the potential entrant) assigns probability p (1 > p > 0) to firm As cost being $40 [and probability (1 p) to firm As cost being $60]. Show why (or why not) firm B wants to...

On July 1, 2020 Trolley & Train World borrowed money from First Friendly National Bank by issuing a $25,000, 90 day, non-interest bearing note. The note was discounted to 14%. Required: Compute the...

On July 1, 2020 Trolley & Train World borrowed money from First Friendly National Bank by issuing a $25,000, 90 day, non-interest bearing note. The note was discounted to 14%. Required: Compute...

Page > of 11 - ZOOM + Class Notes and Classwork Chapter 10 - Liabilities: Current, Installment Notes and Contingencies Current Liabilities Current Liabilities = Obligations that will be paid or...

spreadsheet assignment problems in the attachment. A 180 Day Treasury Bill is priced at $991,850 (Assume $1,000,000 par value). What is the discount Yield? YTM equivalent (Bond equivalent) yield?...

1. Summarize the case 2. How well has Star River done in the past? As it is now, how healthy is it? 3. Estimate the weighted-average cost of capital for Star River. 4. Why or why not should Koh...

FINANCIAL FORECASTING, CORPORATE PLANNING, AND BUDGETING I.LEARNING OUTCOMES: Upon finishing this session, 1.Know and explain the basic concepts involving financial forecasting, corporate planning,...

GUARANTEED LIKE Question 5 (15 Points) Assuming that Dahlgren is correct in that Swedish Match will receive a credit rating of BBB if it moves forward with the transaction. Answer the following: What...

GUARANTEED LIKE this should be better !!! also try zooming in Question 4 (15 Points) Assuming that Dahlgren is correct in that Swedish Match will receive a credit rating of BBB if it moves forward...

ONLY # 5 te some of the metrics in Exhibit 5 for Swedish proposed financial policy.) Question 4 (15 Points) Assuming that Dahlgren is correct in that Swedish Match will receive a credit rating of BBB...

only #6!!! all future interest tax shields from issuing the perpetual bond. Question 5 (15 Points) Assuming that Dahlgren is correct in that Swedish Match will receive a credit rating of BBB if it...

A highway has an optional toll lane that drivers may take to reduce the time they spend driving. Drivers pay a small fee to enter the toll lane ($0.25). Then, once they leave the toll lane, they pay...

Describe the basic accounting equation that provides the structure for the balance sheet. Define the three major components reported on the balance sheet.

Rent and car payments are examples of: Net worth expenses Fixed expenses Variable expenses Assets

A company issues 1,050 shares of its common stock for $33,600 cash. Prepare journal entries to record this event under each of the following separate situations.