Question: If you know that someone has PV (old debt) = 16537.50 SAR and it was agreed with the creditor to sign two new promissory notes

If you know that someone has PV (old debt) = 16537.50 SAR and it was agreed with the creditor to sign two new promissory notes with the same amount fixed at 4000 SAR. The first worth after 4 months, the second after 10 months and pay the rest owed cash immediately

Calculate the amount of cash paid by the debtor if we set the discount rate at 7% per annum ?

Step by Step Solution

★★★★★

3.43 Rating (159 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

ANSWER To solve this problem we can use the present value formula for a series of cash flows PV C11... 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 Finance Questions!

Perform the annual journal entries for eHealth under the old and new revenue recognition standard for one Medicare Advantage policy using the information in Exhibit 7. Under the new standard, how...

The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...

Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...

Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...

Question 1 To be effective, an offer must: Group of answer choices None of these. be sufficiently definite and certain. manifest an intent to enter into a contract. All of these. be communicated to...

BMGT 380 - Final Exam Questions for E-resources - Fall 2014 Multiple Choice: 1 point each 1. Sam orally agreed to sell Jamie some land for $500,000. Jamie paid Sam the $500,000; Sam gave Jamie the...

1. Sam orally agreed to sell Jamie some land for $500,000. Jamie paid Sam the $500,000; Sam gave Jamie the deed to the land. Jamie took possession of the land and began building a cabin on it. One...

BMGT 380 - Final Exam Questions for E-resources - Fall 2014 Multiple Choice: 1 point each 1. Sam orally agreed to sell Jamie some land for $500,000. Jamie paid Sam the $500,000; Sam gave Jamie the...

A PDF version of this assignment is attached.I'll also put it in the Assignments folder in Files.As usual, you'll answer the questions in the online version.That version will be available for you to...

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...

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...

The balance in the unearned fees account, before adjustment at the end of the year, is $178,900. Journalize the adjusting entry required assuming the amount of unearned fees at the end of the year is...

If x = a sin 2t (1 + cos 2t) and y = b cos 2t (1 cos 2t), find the values of dy / dx at t=? / 4 and t=? / 3.

10.03-PR010 A surface-mount placement machine is purchased for $500,000. The SMP machine qualifies as 5-year equipment for MACRS-GDS depreciation. The before-tax cash flows, in constant dollars,...

Imagine you are a senior systems administrator who has been tasked with considering whether or not to implement server virtualization into your organizations computing operations of multiple sites...

Youre doing systems administration work for Network Funtime Company. Evaluate their current IT infrastructure needs and limitations, then provide at least five process improvements and rationale...

Design and draw a class diagram showing the reasonable relationships for these concepts: bird, kite, flyable, air current, beak, feather, eagle, finch, tail, string. I prefer that you use StarUML to...

Supply chain Give an example of using a Supply Chain in a company by explaining the flow contained in the company's Supply Chain!

IT Support for SCM (Supply Chain Management) Mention and explain the implementation of some IT Support related to Supply Chain Management (SCM) by mentioning the strengths and weaknesses!

In general, followers in a growth market have the common objective of market share growth. However, such an objective may not be pursued by which of the followirg?small late entrants with limited...

Parker Company acquires an 80% interest in Sargent Company for $300,000 on January 1, 2015, when Sargent Company has the following balance sheet: The excess of the price paid over book value is...

Cardinal Company acquires an 80% interest in Huron Company common stock for $420,000 cash on January 1, 2015. At that time, Huron Company has the following balance sheet: Appraisals indicate that...

At the beginning of the current year, Meyers, Lincoln, and Kopinski formed a partnership to carry on their consulting practice. At that time, net assets of $59,000, $30,000, and $25,000 were...

3. Imagine you are an education researcher interested in understanding why some children do better in school than others. The theoretical framework you adopt for your study is Bronfenbrenners...

2. For those of you who grew up in a different country than your parents/caregivers, in what ways do you differ from them in terms of life values, behaviors, and/or worldviews? In what ways are you...

2. Find someone from a different culture and ask about the sleeping arrangements for babies in their culture. Are the sleeping arrangements similar or different from what is practiced in your...