A car loan of $46,700 is amortized over 8 years by equal end-of-month payments at 2.9% compounded monthly. What is the amount still owing after 2 years? A. $36,019.15 B. $30,522.60 C. $43,208.24 D. $45,833.37
Q: The maintenance cost of a new equipment is projected to start at the end of the 2nd year at an amoun...
A: Annual Equivalent cost is the annual amount of expenditure incurred each year resulting in total pre...
Q: Mr. Hernandez wants to provide a series of 18 yearly allowance for his 1 yr old daughter starting at...
A: Period of first payment from now = 7 Years (i.e. 8-1 = 7 Years of age) Number of annual allowance = ...
Q: Deposits of 10 are placed into a fund at the end of each year for 18 years with the first deposi occ...
A: The today value is the present value of annual series considering the interest rate and given period...
Q: A company issues a callable (at par) ten-year, 6% coupon bond with annual coupon payments. The bond ...
A: Face Value $ 100.00 Coupon rate 6.00% Time Period 10 Cur...
Q: You own a stock trading on 1/1 at 40 and on 12/31 at 43.50. What annual dividend do you need to earn...
A: Beginning stock price (P0) = 40 Ending stock price (P1) = 43.50 Let the annual dividend = D Required...
Q: Question 1 How much will an investor pay for a preferred stock that pays a $0.50 per share dividend ...
A: Dividend receivable = $ 0.50Required rate of return = 11.5% Formula = Dividend/ Required rate of ret...
Q: A new electric saw for cutting small pieces of lumber in a furniture manufacturing plant has a cost...
A: Modified Accelerated cost recovery system (MACRS) Modified Accelerated cost recovery system (MACRS) ...
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: d) You want to retire in 45 years with $1 million in the bank. You think you can get an average of 5...
A: Time value of money (TVM) is used to measure the value of money at different point of time in the fu...
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: From the firm’s perspective, how are dividends different from interest payments?
A: Even though interest and dividend are two distinct ideas, both are critical components of a corporat...
Q: The display cases above were purchased at the beginning of the month and are being depreciated at a ...
A: A financial plan is a forecast of a company's cash flows over a set period of time that is weekly, ...
Q: 6. An investment of P3,000,000.00 earns interest of 9% compounded continuously. the effective rate o...
A: Effective interest ratee is the interest considering the impact of the compounding on the interest a...
Q: what is a contract
A: A Contract A contract is an agreement between at least two parties or more that generates enforceab...
Q: The minimum required return by Cross-Ocean’s debtholders. 2. The minimum required return by Cro...
A: Minimum Required Return: It represents the minimum return expected by the investors for investing i...
Q: ook Problem 17-03 An investor buys shares in a mutual fund for $22. At the end of the year the fund...
A: Annual rate of return the dividend received and also capital gain achieved on the initial purchase p...
Q: Evan and Emmanuel want to buy a $250,000 home. They plan to pay 15% as a down payment, and take out ...
A: Cost of House is $250,000 Down payment is 15% Term of loan is 30 years Interest rate is 4.9% To Find...
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: What is meant by the concept of “potential savings (profits)”?
A: Profit is the total revenues less all costs and expenses. In other words, profit is the net earnings...
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: a) Assess the financial performance of BWealth Ltd using the information given. b) Briefly explain ...
A: Financial KPIs (key performance indicators) are metric entities used to track, measure, and analyze ...
Q: The Ewing Distribution Company is planning a $100 million expansion of its chain of discount service...
A: Given, Amount required for expansion is $100 million
Q: Car loan Planning to give his son a car as a gift when he graduates from college 2 years from now, A...
A: Present Value: The present value is the value of cash flow stream or the fixed lump sum amount at t...
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: Assume that a UK family visits Spain every summer. Last year, the hotel room where they stayed was p...
A: "Hi, Thanks for the Question. Since you asked multiple sub parts question, we will answer first thre...
Q: Tom Fong Music Inc., has an outstanding bond callable at $1,340. The total value of the bond is $100...
A: Bonds that can be called anytime before maturity are known as callable bonds. Yield to maturity is c...
Q: To start a new business Beth deposits $1000 at the end of each six-month period in an account that p...
A: Semi annual deposit (P) = $1000 Interest rate = 7% Semi annual interest rate (r) = 7%/2 = 3.50% Peri...
Q: The maintenance cost of a new equipment is projected to start at the end of the 2nd year at an amoun...
A: Cost in year n = Cn C2 = P 8000 C6 = P 10000 Uniform increase in cost = (10000 - 8000) / (6 - 2) = P...
Q: ble below is the information about three RM1000 par value bonds and each of which pays coupon semian...
A: The price of bond is present value of coupon payment and present value of par value of bond these ar...
Q: Dan bought 200 shares of a stock at P140 per share. A year later, he sold the stocks at P145.50 a sh...
A: Buying price = P 140 Selling price = P 145.50 Dividend = P 2.25
Q: Cal withdrew $800 from his HSA to pay for non-medical expenses. He had to pay 25% income tax plus a ...
A: Withdrawal Amount = $800 Income Tax = 25% Penalty = 10%
Q: One of your Taiwanese suppliers has bid on a new line of molded plastic parts that is currently bein...
A: NPV It provides the net present value or worth of an investment. If NPV is calculated considering al...
Q: In year 2018, the real rate of interest was 9 percent and infation was meesured at 3 perbent Whet wa...
A: Real Rate of Return = 9% Inflation = 3%
Q: find the size of each 4 payments made at the end of each year into a 9% rate sinking fund which prod...
A: Future value (FV) = 63000 Interest rate (r) = 9% Number of annual payments (n) = 4
Q: us ways to manage the funds of a business ente
A: Step 1 It is a way of planning, organizing, managing, and analyzing financial resources to meet the ...
Q: Based on the table below, you invested 40% on Stock A and B and 20% on Stock Calculate the expected ...
A: Expected return The expected return refers to the profit or loss that is anticipated by an investor ...
Q: 4. You owe P120,000.00 from a friend that promise to pay 6% simple interest. How much will you pay a...
A: The easiest and simple method of calculating interest is simple interest. An interest rate is consid...
Q: Compute for the Average Collection Period, use 360 days Final answers should be in 2 decimal places ...
A: In finance we often use the average collection period as one of the financial metrics. This metric ...
Q: I need help explaining the graphs, below please.
A: Cash flow from financing activities: It shows the cash inflow and outflow from a company's financing...
Q: Identify methods for using and analysing working capital cycles ( max. 300 words )
A: The time it takes to convert net current assets and current liabilities (such as purchased stock) in...
Q: Required information An electric switch manufacturing company is trying to decide between three diff...
A: We will calculate the future worth of all the 3 methods. We will select the method which has the hig...
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: Rank the following three stocks by their level of total risk, highest to lowest. Rail Haul has an av...
A: Risk can be compared on the basis of coefficient of variation. Higher the coefficient of variation, ...
Q: Stock Y has a beta of 1.2 and an expected return of 11.5 percent. Stock Z has a beta of .80 and an e...
A: The risk-free rate of return is the theoretical return on a risk-free investment. Over a given perio...
Q: Maria loaned an amount of 100,000 in payable in 15 equals installments. The first payment was made a...
A: Loan amount (L) = 100000 Number of quarterly payments (n) = 15 First payment after 1 year (4 quarter...
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: ZDL Ltd's earnings per share next year is expected to be $1.50 and the earnings are expected to grow...
A: Present value of growth opportunity (PVGO) refers to the valuation method used by the company to det...
Q: A loan of $6000 is being repaid with quarterly installments of P at the end of each quarter for 5 ye...
A: Given, Loan amount is $6000 Term of loan is 5 years rate is 12% Payment is made quarterly.
Q: the amount of the down payment?
A: “Since you have posted a question with multiple sub-parts, we will solve the first three subparts fo...
Q: a single bank faces a required reserve ratio of 20 percent, has total reserves of $500,000, and chec...
A: The maximum amount of money that this bank can increase is the amount of its excess reserves. Amoun...
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Cash Flow Amounts R. Lee Rouse borrows 10,000 that is to be repaid in 24 equal monthly installments payable at the end of each subsequent month with interest at the rate of 1% per month. Required: Using the appropriate table, calculate the equal installments.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. $2,383Scrimiger 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.
- Sub-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?Sharapovich Inc. borrowed $50,000 from Kerber Bank and signed a 5-year note payable stating the interest rate was 5% compounded annually. Sharapovich Inc. will make payments of $11,548.74 at the end of each year. Prepare an amortization table showing the principal and interest in each payment.Cost of Bank Loan Mary Jones recently obtained an equipment loan from a local bank. The loan is for 15,000 with a nominal interest rate of 11%. However, this is an installment loan, so the bank also charges add-on interest. Mary must make monthly payments on the loan, and the loan is to be repaid in 1 year. What is the effective annual rate on the loan (assuming a 365-day year)?
- Cost of Bank Loan On March 1, Minnerly Motors obtains a business loan from a local bank. The loan is a 25,000 interest-only loan with a nominal rate of 11%. Interest is calculated on a simple interest basis with a 365-day year. What is Minnerlys interest charge for the first month (assuming 31 days in the month)?Halep Inc. borrowed $30,000 from Davis Bank and signed a 4-year note payable stating the interest rate was 4% compounded annually. Halep Inc. will make payments of $8,264.70 at the end of each year. Prepare an amortization table showing the principal and interest in each payment.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?
- Everglades Consultants takes out a loan in the amount of $375,000 on April 1. The terms of the loan include a repayment of principal in eight, equal installments, paid annually from the April 1 date. The annual interest rate on the loan is 5%, recognized on December 31. (Round answers to the nearest cent, if needed.) A. Compute the interest recognized as of December 31 in year 1. B. Compute the principal due in year 1.If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?Campus Flights takes out a bank loan in the amount of $200,500 on March 1. The terms of the loan include a repayment of principal in ten equal installments, paid annually from March 1. The annual interest rate on the loan is 8%, recognized on December 31. (Round answers to the nearest whole dollar if needed.) A. Compute the interest recognized as of December 31 in year 1 rounded to the whole dollar. B. Compute the principal due in year 1.