A local bank is advertising that it pays depositors 6% compounded monthly, yielding an effective annual rate of 6.168%. If Ghc2,000 is placed in savings now and no withdrawals are made, how much interest will be earned in one year?
A local bank is advertising that it pays depositors 6% compounded monthly, yielding an effective annual rate of 6.168%. If Ghc2,000 is placed in savings now and no withdrawals are made, how much interest will be earned in one year?
Abc Investment Ltd., plans to borrow Ghc100,000 for a 90-day period from Lloyds Finance Company. Abc investment would repay the principal amount plus Ghc5,000 interest at maturity. Determine and calculate the Annual Percentage Rate of the credit to Abc Company Ltd.
Belinda Limited has annual credit sales of Ghc5 million and cost of sales of GHC1.8 million. The company’s current assets consist of inventory and trade receivables. Current liabilities consist of accounts payables and an overdraft facility with an average interest rate of 10% per annum. The company gives 60 days credit to its customers and is allowed an average of 30 days credit by trade suppliers. The company has an operating cycle of 90 days.
Other relevant information:
Current ratio of Ait Ltd 1.5:1
Cost of long-term finance to Ait Ltd is 12% per annum
Required:
Calculate the,
(i) Size of the overdraft of Ait Ltd
(ii) Net working capital of the company
(iii) Total cost of financing its current assets
According to what I read in a financial time reports
Step by step
Solved in 3 steps
