C. 85,000 of the insurance is 100,000 for a bodily injury
Answer:Jalen journal $
Date
Jan 1 ,2021
Land Dr. 860,887
Note payable Cr. 860,887
Narration. Issuance of note of above amount payable in four installment for purchase of land.
June 30,2021
Note payable Dr 215,221.64
Cash Cr. 215,221.64
Narration. Payment of first installment on land purchase.
December 31,2021
Note payableDr 215,221.64
Cash.Cr. 215,221.64
Narration. Payment of second installment on land purchase.
2. Balance on note payable as at December 31, 2021 $400,000
Balance on Interest expenses $30,443.28
Explanation:
The land account is debited to recognized it's purchase and a credit is made to the notes payable account to recognise the credit.
The total installment is debited for payment made in the first and second period.
The balance on the note payable represents the two outstanding principal payment of the $800,000 and the interest expenses represents the excess over the principal sum.
Answer:
A. 12.3%
B. 68%
Explanation:
a.Calculation to determine the required return for the project
Required return=(0.62/1.62*5.7%)+(1/1.62*13.2%)+2%
Required return=0.022+0.081+2%
Required return=0.124*100
Required return=12.3%
Therefore the required return for the project will be 12.3%
b. Calculation to determine the maximum cost the company would be willing to pay for this project
Maximum cost =6.3/(12.3%-3%)
Maximum cost =6.3/9.3%
Maximum cost =0.67.7*100
Maximum cost =67.7%
Maximum cost=68% (Approximately)
Therefore the maximum cost the company would be willing to pay for this project will be 68%
Answer:
Effective annual rate = 6.82 %
Explanation:
given data
loan = 65 % of $2.5 million = $1625000
monthly payment pmt = $10,400
time = 30 year = 30 × 12 = 360
solution
we get here rate first by present value
present value = pmt × 
..........1
$1625000 = $10400 × 
15.625 =
solve it we get
r = 0.5517%
and Effective annual rate will be
Effective annual rate = 
Effective annual rate = 
Effective annual rate = 0.068250
Effective annual rate = 6.82 %
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