7) You have a balance of $10,000 for your tuition on your credit card and you make no further charges. If your APR is 18.9% and each month you make only the minimum payment of 3.5% of your balance, determine when the balance would be less than $50. Round your answer to the nearest month.
Q: (a) Heather borrowed $5000 from her grandmother as a down payment on her first car. She promised to…
A: As per Bartleby honor code, when multiple questions are asked, the exe=pert is required only to…
Q: Market Discount, Premium 1. X Corp issues a bond on April 1, 2021, with a maturity date of March 31,…
A: Capital gain Capital gain is the income received through the appreciation of the price of a…
Q: What is the yield to maturity (YTM) of this bond, stated as an APR with semi-annual compounding?
A: Bonds are exposed to interest rate risk as bond prices are sensitive to movement in interest rates.…
Q: You have shorted a put option on Ford stock with a strike price of $13. When you sold (wrote) the…
A: Here, Exercise Price is $13 Put Premium Received is $5 Investor is writing a put:
Q: 1. On September 1, 20X1, Cano & Company, a U.S. corporation, sold merchandise to a foreign firm for…
A: There are foreign exchange transactions that take place on credit so that the amount due is paid at…
Q: The projected annual net cash flows associated with an investment opportunity are shown below in…
A: Here,
Q: 10 million for a feasibility study. If the company goes ahead with the project, it must immediately…
A: NPV is the net present value that is the difference between the present value of cash flow and…
Q: What is the value of a zero-coupon bond that matures in 16 years, has a maturity value of 1million$,…
A: To calculate the value of bond we will use the below formula Value of bond = MV/(1+r)t Where MV -…
Q: Brittany contributed $3,750 at the end of every 3 months, for 5 years, into a Register. Retirement…
A: Solution: An amount deposited at end of every period is known as ordinary annuity. The formula for…
Q: Gillette Corporation will pay an annual dividend of Rs 0.65/ share one year from now. Analysts…
A: Annual Dividend one year from now is Rs 0.65/share Growth rate till 5th year is 12% Constant growth…
Q: You own a call option on Intuit stock with a strike price of $39. When you purchased the option, it…
A: Explanation : Under Option Market in Foreign Exchange Investor will earn the fix amount of Loss But…
Q: Table 17-A-1 Payback Method Input Year Cash Flow 0 (70,000) Balance (70,000)
A: Pay back period is one of the basic and simple method of capital budgeting in which time required to…
Q: t at PJ Brokers estimates that the beta of stock ZLX is close to two (2.0). Therefore, ZLX will…
A: The expected rate of return depends on the risk of stock and risk of stock depends on the risk…
Q: Kindly make an analysis about the asset management ratio (Receivable Turnover, Fixed Asset Turnover,…
A: Ratio Analysis is the analysis of the financial position of the company. It shows the profitability,…
Q: A Serenity Fund Assets The Ariel Group Persephone Corporation Jiangyin, Incorporated Blue Sun…
A: Portfolio turnover rate means the rate at which the assets in the portfolio change over a period of…
Q: Mr. Kevin Dates is the owner of an expanding business operating in bakery industry located in…
A: NPV is a techniques in Capital Budgeting which help in decision making on the basis of future Cash…
Q: A debt of 25,000 dollars due in 4 years is to be repaid by a payment of 3,000 dollars now and a…
A: The concept of the time value of money states that due to the interest-earning capability of money,…
Q: Determine P & F for the diagram below: P = ? 1 month Ø 1 N 3 4 5 7 six months F
A: In this question we will be calculating the Present value of ordinary Annuity and Future value of…
Q: Harley worked for many years to save enough money to start his own residential landscape design…
A: External rate of return is the rate at which the extra cash flow form the project is expected to…
Q: A contractionary monetary policy decreases interest rates in order to slow the growth of the money…
A: A country's central bank can use a variety of measures known as monetary policy to encourage stable…
Q: Case Study 3 Constructed Response Answer Hocus Pocus Company wants to increase sales by adding a new…
A: Net Present Value: It is the current worth of the cash flows at the expected pace of return of…
Q: You see a bond with the following characteristics: bond matures in 10 years coupon rate = 7% APR…
A: Time period of bond maturity i 10 years Coupon rate is 7% APR compounded semi-annually Coupon…
Q: A surgical device company is proposing a plant expansion for a new product line, that is expected to…
A: NPV is Capital budgeting techniques which help in decision making or future cash flow So that we can…
Q: The option is currently A. In-the-money B. At-the-money C. Out-the-money 2. Determine the…
A: Call option A call option provides its holder the right to buy a share at the pre-specified strike…
Q: Gillette Corporation decides to raise an additional Rs 10 million for a new machine and decides to…
A: Given: Dividend = ₹1 Growth rate = 10% Discount rate = 12%
Q: If P250,000 is invested at 6% compounded semiannually, how much interest is earned in 10 years?…
A: Simple interest is computed on the principle component of a loan or the first deposit into a savings…
Q: Sally purchased a home in Georgia for $167,500. She took out a mortgage for 80% of the purchase…
A: Prepaid Interest Expenses is that Expenses which is paid in advance before the Expenses due it will…
Q: Average real return
A: Average real return is helpful in determining the total number of investments. It is to be…
Q: 3. Q Corp. sells $500,000 of bonds to private investors. The bonds are due in five years and coupon…
A: Yield to Maturity of a bond is the rate of return earned on a bond if an investor buys the bond at…
Q: Find the monthly house payment necessary to amortize the following loan. In order to purchase a…
A: Loan (mortgage) amortization schedule refers to a schedule which is prepared to shows the periodic…
Q: At age 25, you start work for a company and are offered two retirement options. Retirement option 1:…
A: Compound Interest: It is the interest earned on interest. It is calculated depend on initial…
Q: Use the following data for the next three questions: Line of Business Paint Hair dye Chalk Widgeta…
A: Herfindahl index show how much is market share and how market share is concentrated and how is…
Q: How much will deposits of $40 made at the end of each month amount to after 9 years if interest is…
A: Annuity refers to the regulare stream of cash flows which has occured over a period of time. When…
Q: You own a $100,000 face value Exxonmobil bond with a 7.00% coupon with semiannual coupons, that…
A: Given:
Q: 1 Using the simple interest formula, determine the number of days until $2269.00 will earn $26.54…
A: Data given: P=Principal = $2269 SI= Simple Interest = $26.54 R=3.5% p.a. Required: No. of days…
Q: Old Nova Inc. just paid its dividend of €5 per share yesterday, which is expected to grow by 1.5%…
A: Value of stock can be found by the present value of dividend and present value of growth of…
Q: Find the amount accumulated in an account where $25 is deposited monthly for 10 years at 2.5%…
A: We will use the concept of time value of money here. As per the concept of time value of money the…
Q: You have a balance of $7500 on your credit card and you make no further charges. If your APR is…
A: Monthly rate = APR /12 = 12.5% / 12 = 1.041667%
Q: The name of second full-fledged Islamic bank in Malaysia is ___________* A. Bank Islam…
A: Full-fledged banks are those that are fully operational and fully manage the financial activities of…
Q: rm's cost of capital is 10%.It is considering two mutually exclusive projects X and Y.The details…
A: Payback period is period required to recover the initial amount of investment and net present value…
Q: Use the data below to construct the advance/decline line and Arms ratio for the market. Volume is in…
A: ARMS index is used by traders to understand the market sentiment by measuring the market supply and…
Q: Please use this information to answer the question below: A US firm's expected Accounts Receivables…
A: Given: Accounts receivables = EUR 15,000,000 Spot rate 1EURO = USD 1.25 Interest rate in US = 5%…
Q: Q2: Consider the net cash flows ($) given below for mutually exclusive projects X and Y. Which…
A: IRR is a techniques under Capital budgeting which provide the actual rate of return earned by the…
Q: withdrawal is to be made 5 years from now, how long will it take for the fund to be depleted?
A: Future Value: It represents the compounded amount of the present sum invested over a period of…
Q: Dani Corporation has 9 million shares of common stock outstanding. The current share price is $75,…
A:
Q: Chase Brew Inc is considering an investment with the following information: initial…
A: To answer this question 1st we can calculate depreciation per year. Depreciation = Cost of the…
Q: Find the monthly house payment necessary to amortize the following loan.
A: Loan: It is the amount of credit or amount borrowed by the borrower from the lender for the purpose…
Q: Consider the case of Collins Construction Co.: Collins Construction Co. currently earns annual…
A: The Depreciation on Straight-line Method is calculated with the help of following formula…
Q: The payoff table below indicates the returns (in RM thousands) of investments in stock, bond and…
A: Expected monetary value (EMV) Decision tree analysis is used to determine the expected monetary…
Q: Ms. C took a loan of $150,000 at a rate of 7 percent. She can pay equal installments of $25,000 at…
A: The number of years over which she can repay the loan amount can be calculated using the NPER…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual interest rate of 6%, and payable in four months. How much interest will Marathon Peanuts owe at the end of four months? A. $2,600 B. $7,800 C. $137,800 D. $132,600Sub-Cinema Inc. borrowed $10,000 on Jan. 1 and will repay the loan with 12 equal payments made at the end of the month for 12 months. The interest rate is 12% annually. If the monthly payments are $888.49, what is the journal entry to record the cash received on Jan. 1 and the first payment made on Jan. 31?Samuel Ames owes 20,000 to a friend. He wants to know how much he would have to pay if he paid the debt in 3 annual installments at the end of each year, which would include interest at 14%. Draw a time line for the problem. Indicate what table to use. Look up the table value and place it in a brief formula. Solve.
- Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank in the amount of $500,000. The terms of the loan are 2.9% annual interest rate and payable in 8 months. Interest is due in equal payments each month. Compute the interest expense due each month. Show the journal entry to recognize the interest payment on October 20, and the entry for payment of the short-term note and final interest payment on May 20. Round to the nearest cent if required.Whole Leaves wants to upgrade their equipment, and on January 24 the company takes out a loan from the bank in the amount of $310,000. The terms of the loan are 6.5% annual interest rate, payable in three months. Interest is due in equal payments each month. Compute the interest expense due each month. Show the journal entry to recognize the interest payment on February 24, and the entry for payment of the short-term note and final interest payment on April 24. Round to the nearest cent if required.Jain Enterprises honors a short-term note payable. Principal on the note is $425,000, with an annual interest rate of 3.5%, due in 6 months. What journal entry is created when Jain honors the note?
- Refer to the present value table information on the previous page. What amount should Brett have in his bank account today, before withdrawal, if he needs 2,000 each year for 4 years, with the first withdrawal to be made today and each subsequent withdrawal at 1-year intervals? (Brett is to have exactly a zero balance in his bank account after the fourth withdrawal.) a. 2,000 + (2,000 0.926) + (2,000 0. 857) + (2,000 0.794) b. 2,0000.7354 c. (2,000 0.926) + (2,000 0.857) + (2,000 0.794) + (2,000 0.735) d. 2,0000.9264You have a balance of $9700 for your tuition on your American Express credit card. Assume that you take no more charges on the card. Also assume that American Express charges 13% APR and that each month you make only the minimum payment of 4% of the balance. What will the balance be after 32 months? At what balance do you begin making payments of $60.00 or less? How long will it take to get the balance below $50?Give typing answer with explanation and conclusion You have a balance of $9700 for your tuition on your American Express credit card. Assume that you take no more charges on the card. Also assume that American Express charges 13% APR and that each month you make only the minimum payment of 4% of the balance. What will the balance be after 32 months? At what balance do you begin making payments of $60.00 or less? How long will it take to get the balance below $50?