Compute bank discount using (A) ordinary interest, (B) proceeds, and (C) effective interest rate to nearest hundredth. Do not round denominator in your calculation. Face Value Discount Rate Time in Days $12,000 13% 120
Q: se PMT= 1- P to determine the regular payment amount, rounded to the nearest dollar. Your cre -nt…
A: Present value of annuity Annuity is a series of periodic equal payment over a specified period. With…
Q: QUESTION You are reviewing a financial model prepared by someone who hasn't taken MRK516. The…
A: Capital budgeting techniques Methods that help investors make long-term investment-related decisions…
Q: Windsor Tool Inc. has a $500,000 loan for a new EDM machine to be used in the tool/die production.…
A: Periodic Payment (PMT) = P * r * [(1+r)n /{(1 +r)n -1}] Where, P = Principal borrowed = $500,000 r =…
Q: hs for the first nine years and $700 at the end of every month for t .The annuity earns interest at…
A: Annuities are uniform payments paid over the period of time and value of annuity depends on the…
Q: Year Earnings and FCF Forecast ($ million) 1 Sales 2 Growth vs. Prior Year 3 Cost of Goods Sold 4…
A: Calculation of stock and change in value of stock.
Q: John wants to buy a property for $121,250 and wants an 80 percent loan for $97,000. A lender…
A: Here, To Find: Part a. Disbursed amount =? Part b. APR for the borrower after 30 years =? Part c.…
Q: You are allocating your wealth between two shares, Tinkle.com and Circumbendibus Wheels. Tinkle.com…
A:
Q: (1) The total amount of a loan to which interest has been added is P 200,000. The term of the loan…
A: Data given: Total interest = P200,000 t=4.5 years Simple interest = 6% Formula for simple interest…
Q: Bailey, Inc., is considering buying a new gang punch that would allow them to produce circuit boards…
A: Initial cost = $125,000 Increase in labor cost = $1,500 Decrease in material cost = $10,000 Net…
Q: Joey chose to invest his money in an account that pays 2.3% annual interest compounded monthly.…
A: In a time series of deposits, the interest is compounded monthly. We have to find interest added…
Q: Quade, Inc. bonds have a 4% coupon rate with semiannual coupon payments and a $1,000 par value. The…
A: Annual coupon amount (C) = $40 (i.e. $1000 * 0.04) Current price (P0) = $990 Current yield = ?
Q: ind the value of the annuity and the interest. round to the nearest dollar. Periodic deposit:…
A: Annuity is a constant stream of fixed cash flows occurring periodically. Here we need to find the…
Q: 1. The table below shows the no-arbitrage prices of securities A and B. The economy is equally…
A: There are two possible states of economy. There are two securities whose cash flows in either state,…
Q: What is the forward rate from 13 months to 17 months? You observe two spot rates. The 17 month spot…
A: We have two spot rate. We need the forward rate for the period in between them.
Q: Tom was trying to determine the best way to save for his retirement. He was selecting between two…
A: We need to use future value of annuity formula to calculate value of money at retirement.…
Q: D Right Side Inc. will offer a coupon of 4% per annum on its much awaited 20-year bonds. By the…
A: Here, To Find: Yield to maturity (YTM) =?
Q: You are provided with information regarding the benchmark portfolio and the Alpha managed portfolio…
A: Performance attribution are techniques that determines how the returns of an active portfolio…
Q: ind the future values of the following ordinary annuities: FV of $300 paid each 6 months for 5…
A: Future value can be calculated using FV (rate, nper, pmt, [Pv], [type]) Rate The interest rate Nper…
Q: Suppose a stock had an initial price of $64 per share, paid a dividend of $1.40 per share during the…
A: Percentage of return = Total return / Initial price of shares
Q: bond, paying semi-annual coupons of 6% per annum, matures in 18 months time, and has a dirty price…
A: Yield to maturity(YTM) is the rate of return that a bondholder will get if he holds bonds till…
Q: A stock has had returns of 12 percent, 30 percent, 17 percent, −18 percent, 30 percent, and −7…
A: Year 1 return (r1) = 12% Year 2 return (r2) = 30% Year 3 return (r3) = 17% Year 4 return (r4) = -18%…
Q: GP / In a geometric sequence, the third term is 48 and the sixth term is 3072 Find the possible…
A: The sequence in Geometric Progression is represented as : a, ar, ar2, ar3, ar4, ar5,...… so the…
Q: Which of the following is an incorrect statement? Revenue - Operating Income = Gross Margin…
A: Gross margin is the amount earned by the firm after deducting COGS from revenue.
Q: Conside the following shocks to the bond market: (A) an increase in perceived risk, (B) an…
A: Bond Market and perceived risk: When the perceived risk goes up in the economy the bond yields shoot…
Q: A bond, paying semi-annual coupons of 8% per annum, matures in 18 months time, and has a dirty price…
A: Yield to maturity(YTM) is the rate of return that bondholder will get if he holds bonds till…
Q: Which of the following is not a correct statement? Accounts receivable represents credit sale,…
A: Account recievable is a current asset that shows the amount to be recieved by the debtors that have…
Q: If the Federal Reserve sells more Treasury securities, overall interest rates go up. True False
A: The Federal Reserve, the central bank of the United States, is in charge of implementing monetary…
Q: A stock has had returns of 16.72 percent, 12.20 percent, 5.90 percent, 26.86 percent, and −13.49…
A: r1 = 0.1672 r2 = 0.1220 r3 = 0.0590 r4 = 0.2686 r5 = - 0.1349 Number of returns (n) = 5
Q: Accounting equation refers to the relations between line items on the balance sheet, and can be…
A: A statement has been made about the basic accounting equation. We have to find if it's true or…
Q: How much must Tim invest to have $60,000 in 6 years?
A: Information Provided: Interest rate = 8% compounded quarterly Future value = $60,000 Period = 6…
Q: or most companies primary source of income is investment income. True False
A: Companies do the business to earn income and also invest surplus income in other sources to increase…
Q: years old now. He wants to accumulate $800,000.when he retires at age of 65. He starts depositing…
A: There is need of the planning for retirement and if we do on the time it will give good results and…
Q: Which of the following statements is CORRECT? a. A firm's business risk is determined solely by…
A: Business risk is the potential for an organization or corporation to experience reduced…
Q: The NXP fund has an expected return of 3.60%, with volatility 24.00%. The risk free rate is 1.70% ,…
A: The reward-to-volatility ratio, also known as the Treynor ratio, gauges how much excess return a…
Q: share of stock sells for $48 today. The beta of the stock is 1.3 and the expected return on the…
A: The price of stock can be found out from the dividend discount model based on the constant growth of…
Q: Assume a par value of $1,000. Caspian Sea plans to issue a 10.00 year, semi-annual pay bond that has…
A: To calculate the price of the bond we will use the below formula Price of bond =…
Q: A company needs to raise $9 million and issues bonds for that amount rather than additional capital…
A: Equity shares are having residual claim on the company at the time of liquidation because equity…
Q: (1) (D) Fund A is invested at an effective annual interest rate of 3%. Fund B is invested at an…
A: Compounding interest is there is interest on interest and due to this there interest become larger…
Q: Convert 2.27% compounded monthly to an equivalent interest rate compounded quarterly. Round the…
A: More is the compounding than more is the effective interest rate and less is compounding than less…
Q: The table containing variances (on the diagonal) and covariances between each pair of stocks for…
A: Portfolio is equally weighted To Find: Standard Deviation
Q: A fully amortizing CPM mortgage loan is made for $100,000 at 6 percent interest for a 30 year term.…
A: Several unrelated questions have been asked. The first question has multiple parts. All the parts of…
Q: 7-14 Complete the balance sheet and sales information in the table that follows for Isberg…
A: The balance sheet is prepared at the end of the accounting period to show the financial position of…
Q: Which of the following is an incorrect statement? Income - Expenses = Operating Incom…
A: Income - Expenses = operating income The statement is correct Operating income is calculated by…
Q: A couple just got married and they are both 25 years of age. They each plan to retire in 40 years at…
A: To Find: Amount to save each year
Q: Create a new Tab in your Excel worksheet & place company name at the top of your worksheet. Yakima…
A: To Find: NPV IRR
Q: Previously, you purchased a European call option on Parlicoot Inc shares. The option has just…
A: Call option payoff is calculated using following equation Call option payoff = Max(0,ST-K) Where, ST…
Q: At the start of the year, you purchased some shares in IBM (a US company) for $US 25.44. The…
A: The exchange rate refers to the trading at which one currency can be exchanged with the other…
Q: In the unrealistic situion in which the cost of capital were zero, the NPV of the project
A: Data given: Cost of capital = 0 Required: NPV of the project
Q: The following loan is a simple interest amortized loan with monthly payments. $155,000, 9%, 30 years…
A: Given, The loan amount is $155,000 Number of years (t) is 30 years Rate of interest is 9.5%
Q: At the start of May, you purchased some shares in Apple (a US company) for $US 45.61, and hedged…
A: Holding period return is helpful in measuring the comprehensive view of the performance of an…
Compute bank discount using (A) ordinary interest, (B) proceeds, and (C) effective interest rate to nearest hundredth. Do not round denominator in your calculation.
Face Value |
Discount Rate |
Time in Days |
$12,000 |
13% |
120 |
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Compute bank discount using (A) ordinary interest, (B) proceeds, and (C) effective interest rate to the nearest hundredth. Do not round denominator in your calculation. Face Value Discount Rate Time in Days $9,000 14% 110Using ordinary interest, 360 days, calculate the bank discount (in $), proceeds (in $), and effective rate (as a %) for the simple discount note. Round dollars to the nearest cent and round effective rate to the nearest hundredth of a percent. FaceValue DiscountRate (%) Term(days) BankDiscount Proceeds EffectiveRate (%) $6,905 10.49 74Calculate the bank discount and proceeds for the following simple discount notes. Usethe ordinary interest method, 360 days, when applicable.Face Value Discount Rate (%) Term Bank Discount Proceeds$4,500 13 6 months $292.50 $4,207.50
- Compute (A) bank discount, (B) proceeds for the following simple discount (use ordinary interest), and (C) the effective interest rate to nearest hundredth percent.Face Value = $12,000, Discount Rate = 10%, Time = 125 days Bank discount Simple discount Interest rate %Using ordinary interest, 360 days, calculate the missing information for the simple discount note. (Round dollars to the nearest cent.) FaceValue DiscountRate (%) Date ofNote Term(days) MaturityDate Bank Discount(in $) Proceeds(in $) $700 12.2 Sept. 4 107 $ $Solve for maturity value, discount period, bank discount, and proceeds. Assume a bank discount rate of 9%. Use the ordinary interest method. (Use Days in a year table.) (Do not round intermediate calculations. Round your final answers to the nearest cent.) Face value (principal) Rate of interest Length of note Maturity value Date of note Date note discounted Discount period Bank discount Proceeds $50,000 11% 95 days June 10 July 18
- Calculate the missing information on the revolving credit account. Interest is calculated on the unpaid or previous month's balance. (Round dollars to the nearest cent.) PreviousBalance AnnualPercentageRate (APR)(as a %) MonthlyPeriodicRate FinanceCharge(in $) Purchasesand CashAdvances PaymentsandCredits NewBalance(in $) $2,470.00 % 1 1/4 % $ $1,334.98 $200.00 $Using ordinary interest, 360 days, calculate the missing information for the simple discount note. (Round dollars to the nearest cent.) FaceValue DiscountRate (%) Date ofNote Term(days) MaturityDate Bank Discount(in $) Proceeds(in $) $71,000 5 May 3 51 $ $Complete the following table for the simple discount notes. Use the ordinary interest method. (Round your answers to the nearest cent.) amount due of maturity discount rate time bank discount proceeds 3200 6.25% 125 days ? ?
- Calculate the bank discount and proceeds for the following simple discount note. Use the ordinary interest method, 360 days, when applicable. Round your answers to the nearest cent. Face Value Discount Rate (%) Term Bank Discount Proceeds $32,000 10.05 6 months $ $If you sign a discount note for $7,500 at a bank discount rate of 5% for 3 months, what is the effective interest rate? Round to the nearest tenth percent. Step 1 The effective interest rate is the actual interest rate charged on a discounted note and takes into account the fact that the borrower does not receive the full amount of the principal. It is calculated using the bank discount, the proceeds, and time. The bank discount is calculated as follows where the discount rate is given as a decimal and the time will be a fraction whose numerator is the given amount of time in months and denominator is 12 months. bank discount = face value ✕ discount rate ✕ time The rate was given to be 5%. As a decimal, we have . Calculate the bank discount (in $) for the $7,500 promissory note at a discount of 5% for 3 months. bank discount = face value ✕ discount rate ✕ amount of time in months 12 months = $7,500 ✕ ✕ 3 12 = $Calculate the bank discount and proceeds (in $) for the simple discount note. Use the ordinary interest method, 360 days, when applicable. (Round your answers to the nearest cent.) Face Value Discount Rate (%) Term Bank Discount Proceeds $85,000 9.85 11 months $ $