Define each of the following terms:e. Simple interest; discount interest; add-on interest

Q: How do I find the total interest earned?

A: Interest earned:   Interest earned is the amount of interest earned over a specific period of time…

Q: How to Use Compound Interest Factors for Annuities

A: Compound interest factor for annuities is used to compute the present and future value of annuities,…

Q: Define the structure of interest rates and list two theories used to explain the structure.

A: Introduction Structure of interest rates: The yield curve, or term structure of interest rates,…

Q: Using the formula Interest = Principal x Rate x Time, if all elements are known except for the…

A: Simple interest rate is most easy and quick method method of interest calculation. Simple interest…

Q: Define term structure of interest rates

A: The term structure of interest rates generally alluded to as the yield curve, portrays the coupon…

Q: The difference between the nominal interest rate and the effectiveinterest rate.

A: The nominal interest rate is the interest rate paid annually without compounding period.  The…

Q: What does the formula developed for calculating compound interest express?

A: Answer: Compound interest is nothing but interest earned on interest. In case of simple interest…

Q: Effective interest amortization method uses which of the following rates to determine interest…

A: Under the effective interest method, the interest is calculated as yield to maturity multiplied by…

Q: fferent ty

A: Define interest. In finance, or economics interest can be defined as the payment of a proportion…

Q: What the different between rate interest و interest value ؟؟!!

A: The rate interest indicates the cost of borrowing or earnings on deposit in the percentage of the…

Q: Define Times interest earned ratio.

A: Accounting Ratios: A ratio is a number expressed in terms of anther. Ratios are used by…

Q: interest

A: Exact Interest = P*r*(t/365) Ordinary Interest = P*r*(t/360)

Q: Interest rate parity; purchasing power parity

A: Both defined in next step

Q: The nominal rate of interest would be %.

A: We can define real interest rate as those interest rates which have been adjusted for the inflation…

Q: Define each of the following terms:j. Real risk-free rate of interest, r*; nominal risk-free rate of…

A: Real risk-free rate of interest: The risk-free rate signifies the interest a saver might expect from…

Q: How do you accrue and calculate interest

A: interest calculation = principle amount * rate of interest    accrued interest is interest…

Q: Differentiate between a stated rate of interest and effective rate of interest.

A: Answer: Stated interest rate: This is the interest rate quoted or the average rate offered by the…

Q: Briefly explain the following a. Relation between present value and interest rate

A: Present value = Applying time value to the future cash flows using interest rates Present Value =…

Q: clearly distinguish between norminal interest rate and effective interest rate

A: The term interest rate can be defined as the fixed income received on the investment. . There are…

Q: What is the difference between simple and compound interest? Give examples.

A: Simple interest: It is the interest calculated on the principal of the loan and the account holder…

Q: The contractual interest rate is alway state as a

A: Contractual Interest Rate Contractual interest rate refer as the rate which helps to determine the…

Q: Computation and Calculation on how they get  - Interest Received  - Interest Income - Discount…

A: Bond Amortization - It is a principal paid regularly, along with its interest expenses over the life…

Q: What is the Rate of Interest?

A: Given  P= 10000 A=5000 n=1year r=?

Q: What are the various forms of interest-bearing transactions

A: The various forms of interest-bearing transactions of explanation:

Q: True or false  Simple interest is calculated on the principal and any accrued interest

A: Interest:   Interest is the cost of borrowing money-, in other words Interest is the amount charged…

Q: What is meant by ‘Issue of debenture at discount and redeemable at premium?

A: Bonds:   Bonds are debt instruments issued by the borrower company to its lenders. Bonds are issued…

Q: Name three accoounts typical of the liability side of a Balance Sheet. In what side would you enter…

A: A balance sheet or statement that describes a company's assets, liabilities, and shareholders'…

Q: 1. How are interest rates determined? Discuss and explain the interest rate equation and its…

A: Interest rate can be defined as the price that lenders charge for lending their money to borrowers.…

Q: Calculate the simple interest note proceeds. calulate the simple discount note proceeds.

A: INTRODUCTION Simple interest note: Note receivable is the bill drawn on customer for the due amount…

Q: Define each of the following terms:l. Interest rate risk; maturity risk premium (MRP); reinvestment…

A: Interest rate risk: Interest rate risk is the chance of a decay in the worth of an asset resultant…

Q: The discount on one unit negotiable substance in one unit of time. O rate of interest O present…

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: What are the Classifications of Annuity.

A: An Annuity is a periodic payment which are made from time to time from a lump sum corpus.

Q: What is (1 + i) n in the compound interest formula?

A: Compound interest is when the interest is charged on the principal amount as well as on the interest…

Q: How did you calculate the all items excluding interest?

A: Cash budget represents the outflow and inflow of cash and takes into consideration the beginning…

Q: What is the three-step process used to determine the amount of interest capitalized?

A:

Q: W TO Find the refund fraction for the interest refund.

A: Some time the loans are paid before the day of expiration of loan than we need to find out the…

Q: Which formula is correct for the compound interest calculation? Select one: a. P = F(1+i)^-n b. P =…

A: In case of CI, interest is computed on amount and after that interest will be computed on new amount…

Q: What is the amount of tmes-Interest earned?

A: Times Interest Earned: Times interest earned is a ratio which states with how many times the…

Q: The difference between simple interest and compound interest?

A: There is various difference between simple and compound interest.  Few of them are as follows-

Q: ket interest r

A: Introduction : As the name suggests, market interest rates refers to the interest rate that the…

Q: Distinguish between the real risk-free rate of interest, r*, and the nominal, or quoted,risk-free…

A: The interest rate is the cost of carry some loan or money. It will provide the income to the lender…

Q: Define implicit rate of interest.

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.