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- ETS offers 6-year CDs at 8.63% compounded quarterly and BOs offers a 6-year CD at a rate 8.59% compounded monthy. Compute the annual yield for each institution and determine which offers is more advantageous for the consumer.A. DEF has total forecasted gross purchases of P4,500,000 relating to a major supplier for the coming year. The supplier is offering a credit term of 3/15, n/45. How much is the simple annual effective cost of paying on the 45th day? B. ABC can take a 45-day loan with a 15% interest deducted in advance, to be reapplied each time. How much is the simple annual cost of the loan? C. ABC’s bank offered a loan with conditions of a P5,000,000 face amount, 6-month term, 4% interest deducted in advance and bank charge of P30,000. How much is the compounded annual effective cost of the bank loan?You deposit $10,000 in an account that pays 4.5% interest compounded quarterly. Use the future value formula for simple interest to determine the effective annual yield (write the effective annual yield value in percentage).
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- Consider an account with an APR of 6.2 % Determine the APY percentage for quarterly monthly and daily compounding interest how does increasing the number of compounding periods increase or decrease the annual yield4. You are given the following information: A 183-day T-bill, face value $100, currently trading at a discount rate of 5% a) What is the price of the T-bill b) You sell the T-bill 10 days later. The T-bill discount rate is 4.5% c) What is the semi-annual compounded APR. Please answer with excel showing formulas.Beautinator Cosmetics borrowed $152,300 from a bank for three years. If the quoted rate (APR) is 10.44 percent, and the compounding is daily, what is the effectiveannual rate (EAR)?
- PT AWOL has sales projections (in million rupiahs) for the following four quarters: Q1 Q2 Q3 Q4 Q1* Sales 410 395 440 500 500(1+80%) Account receivables at the beginning of this year were IDR 150 million. PT AWOL has an average collection period of 45 days. PT AWOL purchases from suppliers on each quarter are 40% of the estimated sales of the next quarter, and the average account payable period is 30 days. Salaries, taxes, and other expenses for each quarter are 30% of sales. The dividend is IDR 20 million, paid quarterly. PT AWOL plans a capital expenditure in the second quarter of IDR 150 million. The company has an initial cash balance of Rp. 85 million with a minimum balance of Rp. 85 million. Assume that the company must borrow the funds needed in the short term at an interest rate of 5% per quarter and the interest is paid in the following quarter. Prepare a cash budget for PT AWOL! (Assuming 1 quarter = 90 days)In October 2008, six-month (182-day) Treasury bills were issued at a discount of 1.42%. What was the annual yield? Assume 365 days in a year. (Do not round intermediate calculations. Enter your answer as a percent rounded to 3 decimal places.)Your company are offered a bank loan with an annual percentage ate (APR) of 5 percent with quarterly compounding. What is the effective annual rate (EAR) on this loan? (Answers are rounded to two decimals) a) 5.00 % b) 21.55 % c) 5.09 % d) 1.25 % e) 105.09 %