6. An investment of P3,000,000.00 earns interest of 9% compounded continuously. the effective rate of interest? 7. What rate in percent compounded monthly is equivalent to 18% compounde annually? 8. When compounded bi-monthly, P150,000.00 becomes P223,183.00 after 5 year

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: Roberto borrows $7000. The loan is to be repaid in 10 yr at 11% interest compounded annually. How mu...

A: Present value of a future cashflow(F) can be defined as the current amount that should be invested n...

Q: 1. What are the different types of deposit accounts and loans offered to customers by any one commer...

A: Banks in Oman offer a wide range of financial products and services to large, medium, and small reta...

Q: 11. In 2019, LSP company reported a net income of $57,000. They had reported earnings before interes...

A: Net income (EAT) = $57000 EBIT = $150,000 Tax rate = 40%

Q: NoGrowth Corporation currently pays a dividend of $0.44 per​ quarter, and it will continue to pay th...

A: Annual dividend (D) = $0.44 Cost of capital (r) = 15.5%

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: A perpetuity is to pay $21,000 at the end of every six months. How much less money is required to fu...

A: Solution:- Perpetuity means the payment made forever. Value of perpetuity = Periodic Payments / Peri...

Q: Suppose an income stream will produce income at a rate of 4000 + 1000t dollars per year for 5 years,...

A: Present value Present value of an amount with continuous compounding. With continuous compounding i...

Q: Assume that the interest rate on 1 year t-bill in Canada is .60% and the interest rate for similar p...

A: Time Period = 1 Year Interest Rate of Canada = 0.60% Interest Rate of US = 1%

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: A couple plans to purchase a vacation home. The bank requires a 10% down payment on the s210,000 vac...

A: We need to use PMT equation to calculate monthly payment. The equation is PMT =P*i1-1(1+i)n where  P...

Q: The payback method helps firms establish and identify a maximum acceptable payback period that helps...

A: Payback period is the number of years required to recover the initial investment in the project. Ans...

Q: A$14,500 bond that has a coupon rate of 5.80% payable semi-annually and maturity of 5 years was purc...

A: Par value (FV) = $14500 Coupon rate = 5.80% Semi annual coupon amount (C) = 14500*0.0580/2 = $420.50...

Q: In comparing alternatives, I and J by the present worth method, the equation that yields the present...

A: Given in this question is the information regarding the Alternatives I and J .  capitalized worth (C...

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: рауm parents agree to lend her money at an annual rate of 5%, charged as sir interest. They lend her...

A: Simple interest is plain simple and there is no interest on interest and so there is no compounding ...

Q: A call option for a P5,000,000-face value bond has a strike price of 101. If the market value of the...

A: Market value = P 5.3 million Strike price = 1.01 * P 5 million = P 5.05 million

Q: The first of 10 semiannual payments of $2900 will be made 5, years from today. What is the present v...

A: Present Value refers to the value of cash flows today which is to be received at some future time gi...

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: 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: A $5,000 bond that has a coupon rate of 5.60% payable semi-annually and maturity of 5 years was purc...

A: The book value of the bond refers to the money that the issuer of the bond owes to the holder of the...

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: A bank uses a certain form at a uniform rate of 60 pads per week during each of the 52 weeks per Thi...

A: Since you have posted a multiple question therefore we will be solving first question only. However,...

Q: eBook Problem 16-07 Assume that the rate of inflation is 5 percent and continues indefinitely and t...

A:  Future Value refers to the value of the current asset or investment of cash flows at a specified in...

Q: An individual decides to invest in one of two projects, A and B, which both require the same initial...

A: Here, Initial outlays of both Projects A and B = $10,000 Yields from Project A = $11,500 Number of y...

Q: In late November 2014, a car dealership in southern Wisconsin was offering a new 2014 Toyota Corolla...

A: Monthly payment:  Monthly loan payments are usually divided into equal installments during the loan'...

Q: Explain 1-2 sentences Financial Risk Interest Rates Volatility Foreign Currency Liquidity Derivati...

A: Financial risk is a type of risk that can lead to the loss of stakeholder capital. For the governmen...

Q: The price of a new car is $36,000. Assume that an individual makes a down payment of 25% toward the ...

A: The loan which is paid-off by making installment payments having two components as interest mount an...

Q: Jana, now 23 years old, is a grade school teacher in Batangas City. She has been invited by her high...

A: A deposit or payment of equal amount of money at equal intervals of time is called annuity. Insuranc...

Q: Determine the number of days from Actual time to Approximate Time Loan Date- Feb. 5, 2021 End date...

A: In actual time, actual days in a month are considered. In approximate time, every month's days are 3...

Q: Galvanized Products is considering purchasing a new computer systen for their enterprise data manage...

A: Purchase price is $100,000 Salvage Value is $4500 Loan amount is one-fourth of purchase price MARR i...

Q: To help buy his new townhome, Bill is taking out a s163,000 mortgage loan for 30 years at 3.4% annua...

A: Here, Loan amount = $163,000 Rate of interest = 3.4% Number of year = 30 years Monthly payment of lo...

Q: Explain briefly what cross hedging implies. What is the significar

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any ...

Q: perpetual you rece ve annually starting next year if you able to deposit 130,000.00 five years ago a...

A: Here we will have to use the concept of time value of money. As per the concept of time value of mon...

Q: Why might disinflation prove favorable to financial assets?

A: Disinflation is the reduction or lowering of the pace of inflation. In other words in situation of d...

Q: How much would you be willing to pay for this investment if you required a 12 percent rate of return...

A: Present Value of Annuity: It represents the present worth of the future annuity stream of cash flow...

Q: Isabella purchased $20,000 worth of 26-week T-Bills for $19,700. What will be the rate of return on ...

A: Initial investment (P) =$19,700 Maturity value(S)=$20,000 since maturity period is 26 week= 26*7=182...

Q: The Northern Mart’s balance sheet at the close of 2021 appeared as follows. They are a very successf...

A: Weighted average cost of capital is the average cost of capital which is calculated by multiplying t...

Q: How do you value a business

A: In the world of finance, we often see that a business is being valued. The valuation might be done f...

Q: Approximately (using the Rule of 72), how many years will it take to double a $3000 investment when ...

A: The Rule fo 72 is a model which helps in knowing the number of years it will take to double the inve...

Q: What is the value of the annuity? $ 7,500 semiannually 12%

A: Present Value:  The present value is the value of cash flow stream or the fixed lump sum amount at t...

Q: H. Cochran, Inc., is considering a new three-year expansion project that requires an initial fixed a...

A: OCF is the operating cashflow of a company. It is the cash generated from normal business operations...

Q: P14-23 ETHICS PROBLEM Assume that you are the CFO of a company contemplating a stock repurchase next...

A: Stock repurchase (or share repurchase) is that financial event in which a company buys back its own ...

Q: Bond valuation An investor has two bonds in her portfolio, Bond C and Bond Z. Each bond matures in ...

A: Bond C coupon (C) = 11% of $1000 = $110 Face value for both bonds (F) = $1000 r = 9.2% Let n = Years...

Q: How does extence of rivalry among competitors in the banking sector affect the investment industry s...

A: The global financial crisis rekindled policymakers' and academics' interest in bank competition and ...

Q: Regular investments made at the beginning of each quarter earn 6.4% compounded quarterly. How many m...

A: Payments are made at the beginning, hence this is an annuity due. Quarterly payment = Q r = 6.4% per...

Q: M4

A: Information ratio = Return of portfolio-Return of benchmarkTracking errorTracking error = Risk of po...

Q: What amount will be paid at the beginning of every month for 10 years if the present value is 20O, 0...

A: The payment flow which continues for a definite time period and terminates after lapse of time perio...

Q: PLEASE don't use excel for this. Show the solution with formula needed. COMPOUND INTEREST 1. When co...

A: Solution:- When an amount is deposited somewhere, it earns interest. The amount invested initially i...

Q: Two recent trends affect financial industry: consolidation and convergence, expline each trend

A: Financial Industry: The Financial industry is a segment of the economy comprised of firms that  are ...

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.