Chapter 1, Problem 41P

James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and Trust. He permits some customers to sign short-term notes for their purchases. He usually discounts these notes at the bank. Following are selected transactions that occurred in March 20X1.  DATE   TRANSACTIONS 20X1   Mar. 4   Mr. Howard borrows $20,000 from the bank on a note payable for the business. Terms of the note are 8 percent interest for 45 days.   11   A 90-day $18,000 note payable to the bank is discounted at a rate of 10 percent.   22   Sold a car to Darnell Jones for $30,000 on a 75-day note receivable, bearing interest at 10 percent.   23   Discounted the Jones note with the bank. The bank charges a discount rate of 12 percent.   25   Sold a car for $30,000 to Henry Thomas. Thomas paid $4,000 cash and signed a 30-day note, bearing interest at 10 percent, for the balance.   28   Alfred Herron's account receivable is overdue. Howard requires him to sign a 12…

James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and Trust. He permits some customers to sign short-term notes for their purchases. He usually discounts these notes at the bank. Following are selected transactions that occurred in March 20X1.  DATE   TRANSACTIONS 20X1   Mar. 4   Mr. Howard borrows $20,000 from the bank on a note payable for the business. Terms of the note are 8 percent interest for 45 days.   11   A 90-day $18,000 note payable to the bank is discounted at a rate of 10 percent.   22   Sold a car to Darnell Jones for $30,000 on a 75-day note receivable, bearing interest at 10 percent.   23   Discounted the Jones note with the bank. The bank charges a discount rate of 12 percent.   25   Sold a car for $30,000 to Henry Thomas. Thomas paid $4,000 cash and signed a 30-day note, bearing interest at 10 percent, for the balance.   28   Alfred Herron's account receivable is overdue. Howard requires him to sign a 12…

James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and Trust. He permits some customers to sign short-term notes for their purchases. He usually discounts these notes at the bank. Following are selected transactions that occurred in March 20X1.  DATE   TRANSACTIONS 20X1   Mar. 4   Mr. Howard borrows $34,560 from the bank on a note payable for the business. Terms of the note are 10 percent interest for 45 days.   11   A 90-day $47,520 note payable to the bank is discounted at a rate of 8 percent.   22   Sold a car to Darnell Jones for $40,320 on a 75-day note receivable, bearing interest at 7 percent.   23   Discounted the Jones note with the bank. The bank charges a discount rate of 10 percent.   25   Sold a car for $48,960 to Henry Thomas. Thomas paid $4,000 cash and signed a 30-day note, bearing interest at 9 percent, for the balance.   28   Alfred Herron's account receivable is overdue. Howard requires him to sign a 8…

On May 12, Alyssa accepted a $5,000 note in granting a time extension of a bill for goods bought by Lucy. The terms of the note were 8% for 120 days. On July 8, Alyssa needed to raise cash and discounted the note at Lucy's bank at a bank discount rate of 9% Calculate Alyssa's proceeds. Use ordinary interest

Maria is a graduate student; she borrows some money to buy a new car at the beginning of her graduation year. The car dealership allows her to defer payments for 12 months. Then Maria makes 48 end-of month payments thereafter. If the original note (loan) is for $30,000 and interest in 2% per month on the unpaid balance, how much will Maria’s payment be?   Please Include equations used and cashflow diagram

Sidney took a cash advance of $200 by using checks linked to her credit card account. The bank charges a cash advance fee of 2 percent on the amount borrowed and offers no grace period on cash advances. Sidney paid the balance in full when the bill arrived.    a. What was the cash advance fee?           b. What was the interest for one month at an APR of 18 percent?           c. What was the total amount she paid?           d. What if she had made the purchase with her credit card and paid off her bill in full promptly? Assume the credit card has a 30-day grace period.

Sidney took a $300 cash advance by using checks linked to her credit card account. The bank charges a 2 percent cash advance fee on the amount borrowed and offers no grace period on cash advances. Sidney paid the balance in full when the bill arrived. a)What was the cash advance fee? b)What was the interest for one month at an APR of 20 percent? c)What was the total amount she paid? d)What if she had made the purchase with her credit card and paid off her bill in full promptly? Assume the credit card has a grace period.

On October 31, Sarah Willis borrowed $5,600 from the Vestal Central Bank. She gave the bank her 90-day note for that amount. The note was dated october 31, and the exact interest rate was 12%. a-Find the date of maturity for the note. b-How much did Sarah pay to the bank on the maturity date?

Consider the following transactions occurring during a given fortnight. Remi's wage for his casual job is $600, paid on his bank transaction account (transaction 1); his scholarship allowance for studying is $150, paid on his bank transaction account (transaction 2); he pays a rent of $250 through a bank account transfer (transaction 3); the coupons on his portfolio of bonds pays $70 on his transaction account (transaction 4); he receives $350 in his transaction account for selling shares he had bought at $300 (transaction 5); he buys a TV worth $920 with his debit card (transaction 6).     Draw Remi's balance sheet and represent how the six transactions above have affected it. Use one single balance sheet, indicate the value of the variations (sign followed by a number) and use only one name for each item [example: equity name appears only once even if several transactions are under equity] No explanations are required.    How much of the funding of the TV comes from current savings…