Mthethwa contracted the following loans from Mdletshe: a) On June 1, 1947, he borrowed R3000 which...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Mthethwa contracted the following loans from Mdletshe: a) On June 1, 1947, he borrowed R3000 which was to be repaid in 5 years with accumulated interest at 5% p.a. compounded semi -annually. interest bearing note for b) On June 1, 1949, he signed a non- R5000 due 6 years thereafter. Mthethwa filed to meet the first obligation and on a meeting with Mdletshe they agreed that both debts should be liquidated by a payment of R4000 on June 1, 1954, and a final payment on 1 June 1958. What should the final payment be if the agreed rate of interest in the settlement is 4% effective? Mthethwa contracted the following loans from Mdletshe: a) On June 1, 1947, he borrowed R3000 which was to be repaid in 5 years with accumulated interest at 5% p.a. compounded semi -annually. interest bearing note for b) On June 1, 1949, he signed a non- R5000 due 6 years thereafter. Mthethwa filed to meet the first obligation and on a meeting with Mdletshe they agreed that both debts should be liquidated by a payment of R4000 on June 1, 1954, and a final payment on 1 June 1958. What should the final payment be if the agreed rate of interest in the settlement is 4% effective?
Expert Answer:
Answer rating: 100% (QA)
To calculate the final payment we need to find the present value of the agreed settlement amoun... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these finance questions
-
On January 1, Wilton loans Andy $90,000. The loan is to be repaid in 5 years with no interest charged. The applicable federal rate is 5%. Discuss the treatment of the loan for both Wilton and Andy in...
-
What is the role of combat fitness? Prepare Marines to maintain a 300 PFT score Prepare Marines to excel on the CFT Prepare Marines to excel at intramural service sports Prepare Marines to physically...
-
At the intersection of Texas Avenue and University Drive, a yellow subcompact car with mass 950 kg traveling east on University collides with a red pickup truck with mass 1900 kg that is traveling...
-
Describe several situations in which an object is not in equilibrium, even though the net force on it is zero.
-
Create two sets of scores with equal ranges but different variances.
-
Diageo North America, Inc., the owner of the Bulleit brand family of whiskeys, sued competitor W.J. Deutsch & Sons Ltd. for allegedly infringing upon the trade dress of Diageos Bulleit bottles....
-
Wiengot Antennas, Inc., produces and sells a unique type of TV antenna. The company has just opened a new plant to manufacture the antenna, and the following cost and revenue data have been provided...
-
Unusual shapes! At this point, we've gotten pretty comfortable with calculating the perimeter and area of squares and rectangles. In this assignment, we'll make a program that calculates these values...
-
Diana and Ryan Workman were married on January 1 of last year. Diana has an eight-year-old son, Jorge, from her previous marriage. Ryan works as a computer programmer at Datafile Inc. (DI) earning a...
-
Company XYZ issued a callable bond with a face value of $20million, a maturity of15years, and an8%coupon rate. Three years later, the company is considering refunding the callable bond due to...
-
On January 1, 20X1 Shapiro and Sons, Inc. issued 9% bonds with a face value of $700,000 at a discount. The bonds yield 10%, pay interest annually, and were sold for $656,992. Shapiro and Sons, Inc....
-
A block of mass m = 14,1 kg is attached to the free end of a light string wrapped around a reel of radius R = 0, 28 m and mass M = 6, 7 kg. The reel is a uniform disk and fixed on an axis about which...
-
Laubitz Company begins operations on April 1. Information from Job cost sheets shows the following: Manufacturing Costs Assigned Job Number April May June Month Completed 10 $6,500 $4,400 May 11...
-
Question 6 (10 points) Great Nuggets finds that there is a clear gender difference in the demand for their chocolates. Men have very little price sensitivity and tend to buy whatever the sales clerk...
-
You are valuing two companies in the digital marketing sector, Company X and Company Y, to determine which one might be a more attractive investment based on relative valuation metrics. Further...
-
App Developers, Inc. (ADI), enters into a contract with Carmen, the chief executive officer of SalesCorp, to create an app for the firm. To fulfill the contract, ADI hires Max and ten other student...
-
Record the following selected transactions for March in a two-column journal, identifying each entry by letter: (a) Received $10,000 from Shirley Knowles, owner. (b) Purchased equipment for $35,000,...
-
Fisafolia Corporation has gross income from operations of $220,000 and operating expenses of $160,000 for 2012. The corporation also has $20,000 in dividends from publicly traded domestic...
-
Cypress Corporation has regular taxable income of $170,000 (assume annual gross receipts are greater than $5 million) and regular tax liability of $49,550 for 2012. The corporation also has tax...
-
Mallory Corporation has a calendar year-end. The corporation has paid estimated payments of $10,000 during 2012 but still owes an additional $5,000 for its 2012 tax year. a. When is the 2012 tax...
-
Compare the full sets of public service announcements (PSAs) represented by Figures 7.11, 7.12, and 7.13 by visiting http://city.milwaukee.gov/health/Safe-Sleep-Campaign. Which set is most effective?...
-
In a pair or in small groups, find three online shopping sites that sell similar types of merchandise (e.g., Backcountry.com, Moosejaw.com, REI.com). Consider the following questions: Who are the...
-
Ask someone to follow a set of instructions or to fill out a form. As an alternative, you also might test a document youve created for a course. You also may try ordering food from a website, such as...
Study smarter with the SolutionInn App