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with solution please i u frinovih igata 9. On January...

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Accounting

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i u frinovih igata 9. On January 1, 20x1, Next Co. obtains a P4,000,000 bank loan due on December 31, 20x4. Interest of 12% is due annually. The bank charges Next Co. an 11.19% nonrefundable loan duten aritum 92 Chapter 2 origination fee. The effective interest rate on the loan is approximately equal to a. 11.19%. b. 12%. c. 16%. d. 1737%. 10. On December 1, 2005, Money Co: gave Home Co. a 1200,000, 11% loan. Money paid proceeds of P194,000 after the deduction of a P6,000 nonrefundable loan origination fee. Principal and interest are due in 60 monthly installments of P4,310 beginning January 1, 20x6. The repayments yield an effective interest rate of 11% at a present value of P200,000 and 12.4% at a present value of P194,000. What amount of expense from this loan should Home report in its 20x5 profit or loss? b. 1,833 a. 0 c. 2,005 d. 7,833 (AICPA)

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