on-july-1-a-company-sells-8-year-250000-bonds-with-a-stated-interest-rate-of-6-if-interest-payments-

Question

On July 1, a company sells 8-year $\$250,000$ bonds with a stated interest rate of 6%. If interest payments are paid annually, each interest payment will be ________.
A. $\$ 120,000$
B. $\$ 60,000$
C. $\$ 7,500$
D. $\$ 15,000$

Oluwadamilola Ameobi · Accepted Answer

So this question says that on July 1st accompany sells 80 a eight year, um, bond for $150,000 to $50,000 on then he has a stated interests off 6%. The question. The answer is, if the interest payments are paid annually, so the interest payment off 6% spade annually, um, each interest payment to be words. So since we know we have 6% interest paid alimony, the value of the bond is 2 50,000. So to find the how much interest payment to pay on each time, so each interest would be causes 6% obviously off to $50,000. I&#x27;m just gonna be six over 100 times 2 50 and this will take it with this. So I left with 2500 times six on that, going to be $15,000 so each interest payments to page time is $15,000

Fuzail Shakir · Answer

way have a is equal to P over our E to the power off our T minus one plenty in a is equal to 1,000,000 B is equal to earn 25,000 on ours, even to 8% and solving for tea. We end up where the tea is equal to L. A off 41 divided by 25 all divided by 0.8 which is approximately equal to 6.1837

Amy Jiang · Answer

Okay, so, first question, we&#x27;re going to use our compound amounts formula. So that is the falling and were asked to find our interest rate. So we&#x27;re solving for our in this case. Okay, so let&#x27;s start by plugging in what we know. So we&#x27;re given that we have a starting value, which is our principal of 80,000 and it increases too. 11,672 0.12 resulting for our rates. And then we&#x27;re calm pounding quarterly&#x27;s or M values for. And that&#x27;s for eight years through our four times eight. That is dirty too. Okay, now let&#x27;s stall for our So we&#x27;ll start by dividing both sides by 8000 and now taking actually Maybe, right mistress. Now we&#x27;ll take the natural log both sides and earn usar log property to put on our power. So we have a len of one ones 672.12 divided by 8000 is equal to 32 Ln of one plus R over for actually, instead of taking a laudable sites, where we can do is we can multiply both sides, but I want over there, too. So instead, that would give us 11,672 0.12 divided by 8000 to the power of 1/32 is equal to one plus R over four Now. It was attacked one on both sides and now multiply both sides by four. And we get our, ah pollution to our calculator now number. It gives me an R value of 0.475 which is equal to 4.75%.

Robert Daugherty · Answer

section to dust. Six. Problem number 11 were asked to figure out the present value. So that is the value right now of $10,000 that has been compound it quarterly for eight years at and so combat equality for eight years. And one other thing that&#x27;s missing here at a 6% interest. So the formula that governs this A is equal to p one plus are over end to the N t. So this a that&#x27;s my future value. He is my present value. Our is the interest rate in the number of compound in period and T is the amount of time. So in this case, I&#x27;m solving for P, So he is going to be equal to So he is gonna be a divided by one plus are over in to the n t. So in this case, he is going to be equal to 10,000 divided by one. Plus, my interest rate was 0.6 divided by its compound ID quarterly. That&#x27;s four times per year and then I do it four times per year for a number of years, which is eight. So this is 10,000 over one plus 0.6 over four to the 32 power. And this turns out to be about all you&#x27;re doing is just putting all of these numbers in your calculator. Um, 62 09 49 3 So that is the amount of money.

Amy Jiang · Answer

Okay, so we&#x27;re given that we have a key value. Our principal is 10,000 are actually that&#x27;s our amounts and were asked to find our present value. That is, You could pretend that with him we also have We have a 6% interest rate. So that&#x27;s our is equal to 0.6 Yeah, and we&#x27;re compounded quarterly. So that&#x27;s a musical to four. And this is for eight years, so T is equal to eight. Okay, so let&#x27;s put this into our compound interest formula. So we have a is equal to p. Times one plus arcade fire over. I&#x27;m gonna borrow empty solving for P. That&#x27;s equal. Teoh a over Klompus are over m to the power of empty. So we have a That&#x27;s 10,000 over one plus R that 0.6 over, um, for to the power of four times eight&#x27;s. So what do we have all four times beat? That&#x27;s 32. They have 1000 divided by one plus 10.6 divided by four. Get a power of 32 and that gives me we have 6 to 09 0.90

Linh Vu · Answer

So here we have my family again. Being one, You go to the REZO on one. This, uh, bound one. So we should get anyone to 80,000. Could you busy with your seven trees are zero and one. Bless, Huh? So means that 8000. Remember, Sullivan? It wasn&#x27;t 100. It could you One less are and blast that it could you I Townsend divided by 7300 minus one. So we called you Ah zu bonzo Ni five night. So be a good Jew. 915 No, I So I sent

Problem

On January 1 a company issues a $\$75,000$ bond t…

Problem 6 Easy Difficulty

On July 1, a company sells 8-year $\$250,000$ bonds with a stated interest rate of 6%. If interest payments are paid annually, each interest payment will be ________.
A. $\$ 120,000$
B. $\$ 60,000$
C. $\$ 7,500$
D. $\$ 15,000$

Answer

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Principles of Accounting Volume 1: Financial Accounting

Mitchell Franklin, Patty Graybeal, Dixon CooperPrinciples of Accounting Volume 1: Financial Accounting

Mitchell Franklin, Patty Graybeal, Dixon Cooper

Principles of Accounting Volume 1: Financial Accounting