A student borrowed $2000 from her parents and agreed to repay it at the end of 3 years, together with 5% simple interest. (a) How much is repaid? (b) Do you ever borrow or lend money with family and friends?

Q: A couple sold their home. In addition to a cash down payment, they financed the remaining balance…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: mr. lima borrowed 50,000 from a lending firm to start a business. if the firm changes simple…

A: The borrower is required to repay the lender of the loan the initial sum borrowed and interest. The…

Q: Lyndsay puts $1,000.00 into a savings account that pays 3% interest, compounded annually. As the…

A: When the interest is deposited after a year, interest is also received on the interest component…

Q: Lorna Ray, owner of a Starbucks franchise, loaned $40,000 to Lee Reese to help him open a new flower…

A: Present Value: It refers to the intrinsic value or present worth of any investment today.

Q: On May 1, 2020, Hazel borrowed a sum of money from Far East Bank , payable for 2 years at 8% simple…

A: The amount of Simple interest is obtained by multiplying the rate of interest and the time period in…

Q: A student needs P4000 per year for 4 years to attend college. Her fathe invested P5000 in a 7%…

A: The present value is the cumulative value of all cash flows discounted while keeping in mind a…

Q: When Bill had 3 years left in college, he took out a student loan for $13,155. The loan has an…

A: Subsidized loans are the loans which do not accrue interest till the time of graduation. the loan…

Q: (a) Heather borrowed $5000 from her grandmother as a down payment on her first car. She promised to…

A: Part-A Borrowed Amount is $5000 Time period is 2 years Interest rate is 7% Per annum To Find:…

Q: When Mary had 5 years left in college, she took out a student loan for $17,512. The loan has an…

A: Monthly payment refers to the equivalent amount that is paid every month for the loan duration. The…

Q: Cody invested the profit of her business in an investment fund that was earning 2.25% compounded…

A: Given, The amount of withdrawal is $5000. Interest rate is 2.25% compounded monthly.

Q: Inez wants to borrow $2100 to start a small business.  She has found a bank that offers a 7% add on…

A: Calculation of Monthly Payment:The monthly payment is $47.25.Excel Spreadsheet:

Q: Juan decided to start savings for college.  He deposited $500 into an account which earns 4% simple…

A: Simple interest is the interest that is determined on the original deposit made to the account. In…

Q: Tom borrowed money from a credit union for 6 years and was charged simple interest at an annual rate…

A: The loan is the sum of money borrowed by the borrower from the lender, where the borrower agrees to…

Q: Miss Calledo deposited P 1,000, P 1,500 and P 2,000 at the end of the 2nd year, 3rd year and 4th…

A: Future Value(FV) is worth of current amount at future point that is computed by compounding current…

Q: When Lisa had  5  years left in college, she took out a student loan for  $13,342 . The loan has an…

A: Introduction: Interest does not accumulate on subsidized loans while you are enrolled at least…

Q: Leslie and Mackoy both opened a savings account with a starting balance of P20,000 on the first day…

A: Given: Balance = P20,000 Interest rate = 8% Periods = 5 years

Q: A student saved $3,000 per year from 1986 to 2001 (15 years) in an account with 7% interest. He…

A: The future value of the annuity is calculated by accumulating the number of installments over the…

Q: Huai takes out a  $3100  student loan at  6.7%  to help him with  2  years of community college.…

A: Consider the following student loan: • He firstly takes out a $3100 loan. •This loan has an interest…

Q: At the beginning of each of the last three years, Lucas put $7,000 from his earnings as a waiter…

A: Amount interest earned = New balance *interest rate New balance = Beginning balance + amount…

Q: When Maria had 5 years left in college, she took out a student loan for $16,174. The loan has an…

A: Given Loan amount = $16,174 Interest rate = 2.7%

Q: Kween Yazmine's mother borrowed Php35,000 to fix their car. The bank charges 5% interest for two…

A: Borrowed amount (PV) = Php 35,000 Interest rate (r) = 5% Period (n) = 2 Years

Q: april loaned her friend $750 to buy a guitar. he agreed to pay it back with 5% annual interest at…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: Mrs. Christell Lee deposited Php50,000 now in an account for the college education of her 3-yeard…

A: Future value from present value concept is used to determine the value of deposits before starting…

Q: Marcy borrowed P1M in a bank that charged 18% compounded monthly and agreed to make monthly payments…

A: Monthly Compounding: It is the interest of interest to the principal sum of a loan or deposit and…

Q: When Michael had 2 years left in college, he took out a student loan for $14,505. The loan has an…

A: For Subsidized loan, the interest will get accumulated after 2 years. Hence, Principal "P" at the…

Q: After earning a BS Electrical Engineering degree, Jess decided to start his own business. His rich,…

A: Borrowings are the liability that is used to finance the requirement of the funds. The borrower…

Q: her new house. She can repay the loan in either of the two ways described below. (a) Five equal…

A: Inputs Borrowing Amount or Loan Amount = 5000

Q: When Mary had 4 years left in college, she took out a student loan for $15,110. The loan has an…

A: Loan Amount = 15,110 Time Period in college = T = 4 years Time Period for loan repayment = N = 36…

Q: a mother earned $15000.00 from royalties on her cookbook. She set aside 20% of this for a down…

A: Amount earned in royalties is $15,000 Amount set aside is 20% Amount invested is 15000×1-20%=…

Q: Jack borrowed $12,000 from a bank for 3 years at 15% interest annually.    What is the total…

A: Simple interest is the fixed rate of interest which is paid or payble on amount borrowed. It is…

Q: Isabella placed $5,000 in a savings account which earns 5.3% interest, compounded every year. How…

A: The formula used as follows: A=P×1+rn

Q: A grandfather agrees to start contributing $2,500.00 to an educational savings account starting with…

A: Future value is the expected value of present sum at a future date, at a given rate of interest.…

Q: Bob has deposited $10,000 at the end of each year into a saving account for the last 12 years. His…

A: Future value: Value of $1 today is different, value of $1 in future. $1 today is more valuable than…

Q: You owe $32,000 to your parents for funding some of your college fees. You promise to make 5 annual…

A: In the given question we require to calculate the interest rate parents are charging on borrowing of…

Q: Rita borrowed $4000 from a bank for 5 years and was charged simple interest. The total interest that…

A: Loan amount = $ 4,000 Period = 5 Years Interest amount = $ 1,600

Q: A woman decides to purchase a $23000 car, and makes down payment of $3500. She arranges to borrow…

A:

Q: Ms. Tamper bought a house for $180,000.  She put 20% down and obtained a mortgage loan for the…

A: Given information: Present Value of Mortgaged Loan: =$180,000-$180,000×20%=$144,000 Future Value =…

Q: Huai takes out a $2500 student loan at 6.4% to help him with 2 years of community college. After…

A: Amount of 1st loan =$2500 Rate = 6.4% Time till loan repayment = 2 years + 4 years + 4months + 3…

Q: Huai takes out a $3300 student loan at 6.6% to help him with 2 years of community college. After…

A: Consider the following student loan: • First he takes out a loan of $3300. • The interest rate for…

Q: Huai takes out a  $3500  student loan at  6.7%  to help him with  2  years of community college.…

A: Details of Loan-1 Loan amount is $3500 Interest rate is 6.7% Details of second loan Loan amount…

Q: Jacqueline invested the profit of her business in an investment fund that was earning 2.50%…

A: Time value of money (TVM) refers to the method or concept which is used to determine the amount of…

Q: Some years ago, Penny purchased the car of her dreams for $25,000 by paying 20% down at purchase…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Lynn Ally, owner of a local Subway shop, loaned $61,000 to Pete Hall to help him open a Subway…

A: In this question we need to compute the future value of loan at then end of 9 years. Other details…

Q: An individual deposited P35,000 and earns 3% interest compounded quarterly. After six years, how…

A:

Q: A student has inherited $50,000. If it is placed in a savings account that earns 3% interest, how…

A: Compound Interest is calculated by multiplying the initial principal amount by one plus the annual…

Q: an annual rate of 15% for 5 years.

A: In simple interest the interest is calculated by multiplying the principal with time and interest…

Q: Last year Jane's grandmother offered to put enough money into a savings account to generate $5000 in…

A: Interest Payment = 5000 Time Period = 1 year Rate of return = 6%

Q: Jennie invested a certain amount in a bank compounded semi-anually.The bank told her that the…

A: Solution:- When an amount is deposited somewhere, it earns interest on it.  The amount invested is…

Cash and Liquid Asset Management

Cash management is the process of controlling cash inflow & cash outflow, managing the cashflows inside the business, and utilizing the cash for business operation at any point in time. A business has to maintain a certain level of cash to meet various financial obligations. Cash management is essential because businesses must utilize the cash to generate maximum profit. Cash management also ensures to maintain maximum liquidity in the business.