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Module 5 Notes Payable
Module 5 Notes Payable
150,000 ÷ 3 = 50,000
4. C. 120,000 gain
Collections
Date on interests Interest income amortization Present value
7. D. 61,990
Jan. 1,20x1
8. C. 72,896; 680,366
9. A. 164,591; 1,241,083
10. B. 438,016
11. A. 1,824,000
First trial: (at 14%)
Future cash flows x PV of an ordinary annuity at X% = PV of note
2,370,470 x PV of an ordinary annuity @ 14%, n= 3 = 1,600,000
(2,370,470 x 0.674972) = 1,600,000 equal to 1,600,000
12. C. 2,543,685
PV factors
Future cash flows @ 12%, n= 3 Present value
Totals 2,351,505
Collections
Date on interests Interest income amortization Present value
14. C. 5,560