4) An n-year loan involves payments of $800 at the end of each month. The interest rate is 12% convertible monthly. If the interest paid in the 45 monthly installment is $424.45, calculate number of years (or months) of the original loan and the total amount of interest paid over the life of the loan.

Q: On January 1, 2020, Janet buys a bond for P10,000 that will make coupon payments of P600 after each ...

A: Annual coupon (C) = P 600 Number of coupons remaining (n) = 1 r = 4% Face value (F) = P 10000

Q: 2. RIM Inc. reported the following financial facts at the year-end Dec 2018. Total Interest-Bearing ...

A: Based on the data mentioned in the problem we will calculate the amount of interest to be booked in ...

Q: On January 1, 2021, Canada Corp. purchased 4-year bonds with a face value of P7,300,000 and a stated...

A: Bonds that are held till maturity are recorded at cost including associated cost. Any discount or pr...

Q: A car lease of $12613 is to be repaid by making payments at the beginning of each month for 3 years....

A: Car Lease Amount = $12613 Time Period = 3 Years Interest Rate = 3%

Q: You borrow $30,000 for 10 years to pay tuition and fees. The annual interest rate is 12 percent. Wha...

A: Loan amount (PV) = $30000 Interest rate = 12% Monthly interest rate (r) = 12%/12 = 1% Period = 10 Ye...

Q: You have found three investment choices for a one-year deposit: 9.1% APR compounded monthly, 9.1% AP...

A: Solution:- Effective Annual Rate (EAR) means the effective rate for a year after effect of all the c...

Q: Neverland Company, a retailer, plans to sell 15,000 units of Product X during the month of August. I...

A: Sales = 15000 units Opening stock = 2500 units Closing units = 2000 units

Q: Paccar’s current stock price is $48.20 and it is likely to pay a $0.80 dividend next year. Since ana...

A: Required return can be calculated as: = (Dividend to be paid next year / current stock price) + grow...

Q: 1. The New York Stock Exchange is primarily a. A secondary market. b. An organized auction market. c...

A: A secondary market is a market where shares of company are traded among the sellers and prospective ...

Q: future value of the bond (the amount the bond pays in one year) is

A: Time value of money (TVM) is used to measure the value of money at different point of time in the fu...

Q: If the sum of P12,000.00 is deposited in an account earning interest rate of 9% compounded quarterly...

A: Future Value: The future value is the amount that will be received at the end of a certain period. T...

Q: You work for a nuclear research laboratory that is contemplating leasing a diagnostic scanner. The s...

A: Tax shield on depreciation =(6,300,000/4)*(0.36) 567000 After tax lease payment = 1745000*(1-0.36)...

Q: Tom Fong Music Inc., has an outstanding bond callable at $1,340. The total value of the bond is $100...

A:

Q: A bank deposit paying simple interest at the rate of 6%/year grew to $1300 in 8 months. Find the pri...

A: The interest calculation made for a loan or investment is ascertained using simple and compounded me...

Q: Use the following table of spot rates: Years to Maturity Annual Effective Spot Rate 1 3.00% 2 3.60% ...

A: Interest rate swap It is a derivative in which two parties agree to exchange the future interest pay...

Q: What is the difference between a coupon rate, yield to maturity, and current yield? What is Fisher e...

A: Concept coupon rate, yield to maturity, and current yield All the above terms are associated with bo...

Q: Español To help pay for art school, Lucy borrowed money from a bank. She took out a personal, amorti...

A: Fist we need to use monthly payment of loan by using PMT equation given below PMT =P*i1-1(1+i)n wher...

Q: ategies that a hospital must do to achieve financ

A: Financial health is necessary for any organization and this is very important to maintain and grow f...

Q: The future value of four cash flows paying $100 at the end of each year starting three years from no...

A: Future Value: The future value is the amount that will be received at the end of a certain period. T...

Q: Which of the following is part of the journal entry to backflushes costs to inventory accounts?

A: RIP= units * cost per unit + RM

Q: . What is the present worth of 4100 deposited at the end of every three months for 5years if the int...

A: The future value is the amount deposited and interest accumulated over the period of time. The prese...

Q: The expected value of a normal distribution of prices for a stock is $71. If you are 99 percent sure...

A: The normal distribution is assumed than it follows the probability of stock prices can be found from...

Q: Everest Inc's preferred stock pays a dividend of $1.40 per quarter, and it sells the preferred stock...

A: SOLUTION : GIVEN, Everest incs preferred stock price = $27.15 per share Dividend per quarter = $1.40...

Q: how much is in the account at the end of 45 years? (Round your answer to the nearest cent.)

A: Time value of money (TVM) is used to measure the value of money at different point of time in the fu...

Q: If Going Merry Inc. has a net income of P 200,000 and a net sales of P 5,050,000 during 2020; and a ...

A: Year Net income Net sales 2020 200000 5050000 2021 225000 7000000

Q: Assume that a bond will make payments every six months as shown on the following timeline (using six...

A: Assuming that the bond has been issued and is being redeemed at par itself. Coupon rate is the rate ...

Q: You bought 100 shares of Zen stocks initially selling at Php 50 with an initial margin on your purch...

A: Given: Particulars   Number of shares 100 Selling price 50 Initial margin 25% Interest ra...

Q: Commercial Bank of Windhoek has credited Upington Solar Corporation with R550m, with a maturity of t...

A: Data given:: Loan amount = R 550 m Expected loss = R 16.5 m Recovery rate = 23%   Required:: Probabi...

Q: 19. Firm X has a Return on Equity (ROE) equal to 10%, a total debt ratio equal to 0.6. If the firm h...

A: Note: Hi! Thank you for the question, as per the honour code, we are allowed to answer one question ...

Q: An FSA can be used to pay for over-the-counter as well as prescription medications. Kendra bought th...

A: FSA or Flexible spending account is an employer sponsored healthcare  benefit. This account allows t...

Q: Use PMT to detormine the regular payment amount, rounded to the nearest cent. The cost of a home is ...

A: Installment payment has two components as first interest amount and second principal amount utilized...

Q: How does extent of rivalry among competitors affect the investment industry sector?

A: Here we are supposed to elaborate the degree to which the rivalry among the competitors affects the ...

Q: 34 Consider the asset structure A = where columns are assets and rows are 5 2 21 states of nature. C...

A: A = 3452 z = z1z2 Return (r) = 111

Q: 15. Zoom has Quick ratio of 2x, sales of $120,000, in addition it has current assets of $170,000 and...

A: Quick ratio = 2x Current assets = $170,000 Current liabilities = $50,000 Inventory = Current assets-...

Q: You recently went to work for Allied Components Company, a supplier of auto repair parts used in the...

A: Here, Discount rate = 10% To Find: IRR of each project =? Payback Period =?

Q: Bartlett Co. wants to issue sixty 20-year, $1,000 par value, zero-coupon bonds. If each bond is pric...

A: Par value = FV = $1000 Years to maturity = n = 20 years Yield  rate = r = 7% Number of bonds = N = 6...

Q: Bob Katz would like to save $250,000 over the next 25 years. If Bob knows today that he will be give...

A: Amount likely to be saved is $250,000 Interest rate is 4% Inheritance received in year -15 is $150,0...

Q: compounded monthly for any deposits made in the next month. If they deposit $10,000, then how much w...

A: Future value: It represents the future worth of the present sum of money. The future value is compu...

Q: Machine M Machine N $ 25,000 5 years $3,000 $25,000 4 years $4,000 $11,000 $3,500 Initial Cost Estim...

A: Net present value is calculated to determine the profitability of the project. In case of different ...

Q: Q1. Tom Fong Music Inc., has an outstanding bond callable at $1,340. The total value of the bond is ...

A: Solution : C : $ 40.20 Millon

Q: pplegate Industries is planning to expand its production facility in a few years. New plant onstruct...

A: Number of Years = 3.5 Periods per year = 4 (interest rate compounded quarterly) Nominal rate= 8% Int...

Q: Consider a one-year discount bond that has a present value of P1,500. If the rate of discount is 4 p...

A: Present value (PV) = P1500 Discount rate (r) = 4% Period (n) = 1 Year

Q: Bob White argues that if his wage went up from $10/hour to $20/hour he would still be able to pay re...

A: Since you have posted a question with multiple questions, we will solve the first question for you. ...

Q: a. How much interest did Jo pay the bank for the use of its money? b. How much did he receive from t...

A: Loan amortization refers to a schedule which is prepared to shows the periodic loan payments, amount...

Q: . Compute the cost of equity for this project  2. Compute the relevant cost of debt for this project...

A: WACC: It represents the average cost of capital for the company. It is computed by adding the indiv...

Q: etermine the amount of money he ne

A:   Present value refers to the value of assets present today of the value at some future date. It def...

Q: nds: a zero-coupon bond with a maturity of six years, and a perpetual b 8%. How many percent of your...

A: Duration of perpetuity bond = (1+yield)/yield = (1+8%)/8% = 13.5  

Q: 1. If P500.00 is invested at the end of each year for 6 years at an annual interest rate of 7%, what...

A: Since you have posted multiple questions, we shall be solving the first one for you. In case you wis...

Q: A couple who wants to purchase a home with (a) What will be their monthly payments? (b) What is the ...

A: Loan Amortization: It is a process of paying the loan off by making equal periodic payments. These ...

Q: Explain the mode of delivery in foreign contracts.

A: It is defined as the delivery as a part of the contract of trade between the seller and the buyer.  ...

Risk Management Techniques

Risk management is the procedure of recognizing, analyzing, monitoring, and preventing the risks and threatening factors of investments and business. Risks can arise from various factors including internal controls, market changes, natural disasters, and failure in productions. Risk management techniques enable entities to control and minimize the risks as well as the threatening factors of the business and it also helps to improve the business.