Waterway gave the vendor a $11,300zero-interest-bearing note for the equipment on the date of purchase. The note

Get step-by-step solutions with AI-powered insights and expert guidance to help you understand core concepts.

Question:

Waterway gave the vendor a $11,300zero-interest-bearing note for the equipment on the date of purchase. The note was due in one year and was paid on time. Assume that the effective-interest rate in the market was9%.

Solution

Equipment = $11,300 * 0.91743 = $10,366.96

Discount on notes = $11,300 -$10,366.96 = $933.04

my question is how the 0.91743 comes about?

Posted Date: Jun 28, 2024 01:06 AM

See More Questions

What changes did the Fed implement to its discount window lending policy in the early 2000s? in the late 2000s? (LG 4-3) LO.1
STATED VALUE, COMMON AND PREFERRED STOCK, AND NONCASH ASSETS Kris Kraft Stores had the following stock transactions during the year: (a) Issued 4,000 shares of no-par common stock with a stated value...
Please answer all of the given questions: Task: Attempt ALL questions (a) Supply and demand data for toasters is shown above. Plot the demand and supply curve and find the equilibrium price and...
The lower confidence limit for a poll of 48 people with proportion 0.45 in favor at 99% confidence level and 3 decimal places is
1. Gluteus maximus muscle and mention the structures covered by it.
2. External features and relations of Kidney.
3. Features of Synovial joint and its classification.
1. Name the paranasal air sinuses.
2. Name the ventricles of Brain.

Waterway gave the vendor a $11,300zero-interest-bearing note for the equipment on the date of purchase. The note

Question:

Expert Answer:

Students also viewed these accounting questions