A bill for $100 is purchased for $94 five months before it is due. Find: ) The nominal rate of discount convertible once every two months earned by the purchaser. ANSWER = %. 1) The annual effective rate of interest earned by the purchaser. ANSWER = %.
Q: An interest-bearing promissory note for $5,500 is due in 180 days with simple interest at 4.75% p.a.…
A: Here, Face value = 5,500 Interest rate = 4.75% Discount rate = 6.75% Time to maturity = 180 days…
Q: A credit union's Rate-Climber GIC pays rates of 2%, 2.5%, and 3% compounded semiannually in…
A: Future value of a present value is the value of that amount after taking into account the time value…
Q: full explanation urgent all parts plzzz I will thumb up?
A: The effective rate of interest - It is the true interest rate that a company earns or pays over a…
Q: A bank pays simple interest at the rate of 8% per year for certain deposits. If a customer deposits…
A: Formula: Interest amount = Deposit amount x Time period x Interest rate
Q: Percentages need to be entered in decimal format, for instance 3% would be entered as .03.)…
A: Calculation with proper explanation given in next sheet.
Q: Chuong Ngo borrows $4500 from a bank that advertises a 7% simple interest rate and re-pays the loan…
A: Number of payments = 5 Rate of interest = 7%
Q: Chuong Ngo borrows 4800$ from a bank that advertises a 6% simple interest rate and repays the loan…
A: The annual percentage rate is the rate that is charged from the borrower or earned by the investors…
Q: 1. A bank is offering to sell certificates of deposit valued at $ 5,000.00. At the end of 3 years,…
A: Solution:- Given, A Bank Deposited Value = $5,000 At the end of 3 years = $5,310 Interest for 3…
Q: pays a 9.75% nominal rate on deposits, with monthly compounding. What effective annual rate (EFF%)…
A: The effective annual rate can be computed as follows :- EAR = (1+i / x)^x - 1 = (1 + 0.0975/12)^12…
Q: First National Bank offers two-year CDs at 9.16% compounded daily, and Citywide Savings offers…
A: First National Bank r=9.16% compounded daily n= 365 Annual yield formula is…
Q: At what nominal rate of interest, convertible monthly, is $16,000 the present value of $290.10 paid…
A: Given: Future value = $16,000 Present value = $290.10 Years = 6 years Periods = 6*12 = 72
Q: You sign a simple discount promissory note for $7,000 at a discount rate of 7%, for 24 months. What…
A: Discount = Amount*Interest rate*Time period/12 Proceeds= Principal Amount- Discount
Q: A loan company advertises that $100 borrowed for one year may be repaid by 12 monthly installments…
A: Effective annual interest is the amount which is expressed in terms of percentage paid annually to…
Q: At what nominal rate of interest, convertible monthly, is $16,000 the present value of $290.10paid…
A: Annuity Due refers to a series of fixed payment which are done at beginning of period whereas…
Q: Cheong Ngo borrows $4000 from a bank that advertises a 7% simple interest rate and repays the loan…
A: Annual percentage rate (APR) define as annual interest paid on the borrowed amount. The approximate…
Q: A loan of $1,000 at a nominal rate of 12% convertible monthly is to be repaid by 6 monthly payments…
A:
Q: David makes a sequence of 35 monthly deposits of 645 dollars each into an account paying interest…
A: Nominal rate of interest is the rate of interest expressed in percentage is the amount that is paid…
Q: Percentages need to be entered in decimal format, for instance 3% would be entered as .03. Cooley…
A: Factoring of accounts receivable: In general business, accounts receivable are sold out to another…
Q: Recently, a bank offered six-month CDs (Certificate of Deposit) at 6.0% compounded monthly. (Round…
A: Original Value = $1000 Compounding Frequency = 12 Interest Rate = 6% Period = 6 months a) Annual…
Q: A 7 year, $7,500 promissory note bearing interest at 6% compounded monthly was sold after 2 years.…
A: Face Value of Promissory note = $7500 Interest rate = 6% Interest rate monthly = 6%/12 = 0.50%…
Q: You purchase a TIP note with an original principal amount of $1,.000,000 and a 9 percent annual…
A: Original Principal Amount = $1,000,000 Annual coupon Rate = 9% Inflation over the first six months =…
Q: LOA Bank Limited quotes a 9 percent interest rate on loans for 1 year. You are seeking a loan of…
A: The rates which are charged by the bank to the borrower on taking loan from the bank is referred as…
Q: Lucas opens a bank account with 10000 and lets it accumulate at an annual nominal interest rate of…
A: Compound interest: It is the addition of interest to the principal sum of a loan or deposit and…
Q: An item is sold for an initial installment of $600 and 18 payments of $500 at the end of each month,…
A: Amortization schedule: An amortization schedule is a detailed table of periodic loan payments that…
Q: You purchase a TIP note with an onginal principal amount of $1,000,000 and a 4 percent annual coupon…
A: TIP note pays coupons as per the semiannual inflation rate in a given period. If inflation is…
Q: The First National Bank is offering a 3 year certificate of deposit (CD) at 4% interest compounded…
A: Here, First National Bank Second National Bank Investment $7,000 $7,000 Interest Rate (r)…
Q: New Town Bank offers you a line of credit of $50,000 with an interest rate of 2.1 percent per…
A: Effective Annual interest rate(EAR) refers to the actual interest rate which is received on deposits…
Q: A credit card offers an introductory rate of 7% compounded monthly for the first six months,…
A: A credit card is a short-term credit facility provided by the banks to its customers. Interest is…
Q: A certificate of deposit (CD) is an agreement between a bank and a saver in which the bank…
A: formula for annual yield: AY=1+rnn-1where,r =rate n =frequency of compounding
Q: A firm sells its accounts receivables to a factor at a 1.7% discount. The average collection period…
A: Effective annual interest rate formula: effective annual interest rate =1+rnn-1where,r=discount…
Q: New Town Bank offers you a line of credit of $50,000 with an interest rate of 2.1 percent per…
A: An investor invests in specific securities in order to get some returns, the actual rate of return…
Q: Suppose an investor plans to make monthly deposits into an account that pays 9% interest, compounded…
A: Here we will use the formula to calculate the amount to be paid monthly. We will take the period as…
Q: A certificate of deposit (CD) is an agreement between a bank and a saver in which the bank…
A: It is very important for the investor to compare the annual yields of the investment instead of…
Q: A merchant sells a product on credit for S/ 50,000 and offers to pay it to a client in three bills…
A: 1. The face value of the bills. Particulars Bill 1 Bill 2 Bill 3 Credit sales amount…
Q: Rex Corporation accepted a $3,500, 5%, 120-day note dated August 8 from Regis Company in settlement…
A: Notes Receivables - Notes Receivables are the promise to pay money on the specified date with the…
Q: A bank offers a lending rate of 10% p.a. compounded quarterly. What figure would they quote if they…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: our year end is December 31. You lent $120,000 to another company on Oct 1. If the interest rate is…
A: Solution Concept The amount of the interest receivable is mathematically equal to =principal *…
Q: Deposits of GHS100 are made every month for 5 years into an account crediting interest at a nominal…
A: Firstly, we shall calculate Value of investment after 5 years. Then we shall calculate the Monthly…
Q: Michael Jacobson signed a simple discount note with a face value of $ 8,400 at a discount rate of…
A: Discount Note is short-term debt instrument which is issued to raise short term debt for period less…
Q: On January 18, 2007, BusinessWeek reported yields on Treasury Bills. Bruce Martin purchased a…
A: Treasury bills: These are government-issued securities having maturity within a year. These are also…
Q: Lucas opens a bank account with 10000 and lets it accumulate at an annual nominal interest rate of…
A: Here, Lucas: Deposit amount = 10,000 Annual nominal interest rate = 6% convertible monthly Danielle:…
Q: he First National Bank is offering a 4 year certificate of deposit (CD) at 4% interest compounded…
A: given, P = $7000 first bank : n = 4 , r= 4% ,m = 4 ( quarterly compounding) second bank : n =4,…
Q: A 12-month certificate of deposit at Middlesex Savings Bank is advertising a 1.2% annual percentage…
A: The future value is the future worth of the amount that will be paid or received at the end of the…
Q: Determine the interest rate earned on a $2,300 deposit when $2,600 is paid back in one year. (Round…
A: Future value = Present value * (1+interest )^n N is no. of years.
Q: You purchase a TIP note with an original principal amount of $1,000.000 and a 10 percent annual…
A: TIPS are inflation adjusted securities by the government.
Q: A bank offers 5% compound interest calculated on half-yearly basis. A customer deposits 1600.00 each…
A: Compounding means earning interest on Principal+ Interest earned on principal.
Q: Assume you have secured a loan of $10,000 from a bank which will be paid in one year. The bank has…
A: Interest payable = Opening Balance * Monthly interest rate
Q: On June 8, Alton Co. issued an $75,537, 7%, 120-day note payable to Seller Co. Assuming a 360-day…
A: Maturity value of the note = Principal + Interest = $75537+1763 = $77300
Q: Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual…
A: Short-term notes payable is a current liability of the business as the repayment is to be made in…
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- A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an annual interest rate of 11%. If 6 months have passed since note establishment, what would be the recorded interest figure at that time? A. $7,150 B. $65,000 C. $14,300 D. $2,383Marathon 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. $132,600A bill for $200 is purchased for $195 five months before it is due. Find:a) The nominal rate of discount convertible bimonthly earned by the purchaser.b) The annual effective rate of interest earned by the purchaser.
- It is known that at a compound interest, 100 accumulates to 140 at the end of six years. Determine i) the nominal rate of discount convertible every 4 months. ii) the nominal rate of interest convertible every quarter. ii) the nominal rate of discount convertible every 4 years.David makes a sequence of 35 monthly deposits of 645 dollars each into an account paying interest convertible monthly. Immediately after making the 35th deposit, the account balance is 25165.44 dollars. What is the nominal rate of interest convertible monthly?Find the accumulated value of $3, 052.00 at the end of twelve years if the nominal interest rate was 2% convertible monthly for the first three years, the nominal rate of discount was 3% convertible semiannually for the next two years, the nominal rate of interest was 4.2% convertible once every two years for the next four years, and the annual effective rate of discount was 0.058 for the last three years.
- Assuming that the nominal rate of discount convertible every two years is 7% calculate each of the following: i)The annual effective rate of interest ii)The five year effective rate of discount iii)The nominal rate of discount convertible semi-annually iv)The nominal rate of interest convertible every two yearsYou are told that the nominal rate of interest is 3.1% per half-year payable monthly. Calculate the equivalent nominal rate of discount per quarter year convertible monthly. No tables, only formulas, pleaseAn accountant purchases a T-bill with a face value of $4,000 for $3,955. If the term of the T-bill is 115 days, what is the annual simple interest rate (in percent) earned by the client? Round to the nearest tenth of a percent. (Use 360 days in 1 year.)
- A firm sells its accounts receivables to a factor at a 3.5% discount. The average collection period is 3 month. a. What is the effective annual interest rate on this arrangement? (Round your answer to 2 decimal places.) b. What is the implicit effective annual interest rate if the average collection period is 5 months? (Round your answer to 2 decimal places.)At what nominal rate of interest, convertible monthly, is $16,000 the present value of $290.10 paid at the beginning of each month for 6 years? Round your answer to 2 decimal places.Recently, a bank offered six-month CDs (Certificate of Deposit) at 6.0% compounded monthly. (Round your answers to two decimal places.) a) Find the annual yield of one of these CDs. b) How much would a $1,000 CD be worth at maturity? c) How much interest would you earn? d) What percent of the original $1,000 is this interest?