Define implicit rate of interest.

Q: According to our authors, define and provide an example of an “effective interest rate.

A: Effective interest rate- Formula for Effective interest rate= 1+Nominal Annual interest ratenn-1…

Q: How can we calculate an Effective Interest Rate Based on a Payment Period?

A: The effective annual rate of interest is the actual or the real rate of interest paid or received…

Q: What is Bond's interest income?

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

Q: What is a compounding interest rate?

A: Interest rate is the rate charged by the lender for the amount of money lend by him. Lender can be…

Q: Define Interest receivable.

A: Introduction: Interest Receivable is an amount which has been earned by the person but the same has…

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: Increasing interest expense will have what effect on EBIT?

A: EBIT stands for Earnings before Interest and Tax, the amount earned by the company from the…

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: 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: what is the interest rate

A: Interest rate is the rate at which the bank or any other lenders charges from the borrowers for…

Q: How do you calculate simple interest and commission?

A: Interest and commission is a special type of income generated on the principal amount or net…

Q: What is interest coverage ratio?

A: The interest coverage ratio is the ratio which shows the ability of the company to pay the interest…

Q: What are the benefits of interest tables?

A: The question is based on the concept of interest table.

Q: How to Calculate Compound Interest Factors and explain with example?

A: It is interest ascertained based on the starting principal and frequently contains all the collected…

Q: Write the methods of Calculating Interest?

A: Methods of calculating interest: The basic and fundamental methods for calculating interests are…

Q: What is interest rate?

A: Answer: At a particular situation, an interest rate determines how much money a borrower promises to…

Q: How much is the estimated payment to liabilities with priority?

A: The determination of estimated payment to Liabilities with priority is shown hereunder : The…

Q: Define risk-free nominal interest rate of interest

A: Risk free rate is the minimum rate that the investor may expect to receive from their investment…

Q: Please explain the difference between the terms interest rate and required return by defining each.

A: The amount which is charged by the lender to the borrower in order the use assets is known as the…

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: 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: What are the components of an interest rate?

A: Interest rate refers to the net charges that a lender makes on the principal amount provided to the…

Q: When is it recommended to compute the effective interest rate per payment period?

A: When there is a compounding of interest, then the EIR per payment period is recommended. As it is a…

Q: Explain Risk Premiums, Interest Rate Risk, and Default Risk?

A: Risk premium: A risk premium is nothing but the return above the risk-free rate of return that an…

Q: Interest cost is calculated by multiplying the______by the ______?

A: Interest cost is calculated by multiplying the  Principle amount by one plus the annual interest…

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: Define Accrued Interest Payable.

A:

Q: what is the formula for compounding interest?

A: Compound interest can be defined as the interest earned on principal amount and on all previous…

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: What is net interest margin(NİM)?

A: There are various profitability ratios

Q: What is the Rate of Interest?

A: Given  P= 10000 A=5000 n=1year r=?

Q: What is the Net Interest Margin (NIM)

A: Net Interest margin (NIM) is percentage of difference between interest income earned on loans and…

Q: Define the term the effective interest rate covering the payment period?

A: Interest rates can be of two types- Simple interest rate- This is the interest rate stated in the…

Q: What is present value interest factor?

A: The present value interest factor is a mathematical equation used to estimate today's value of money…

Q: Define amortized loan

A: Amortized loan is a loan in which total loan will be paid off by same periodic payments. These…

Q: How is the PW analysis dependent on the rate of interest used for the PW computation?

A: Net present value (or) PW analysis is one of the capital budgeting techniques. When a company is…

Q: how to calculate FLEV and Spread and Noncontorlling interest ratio

A: Financial Leverage is a financial ratio that represents the relationship between the total debt and…

Q: Illustrate the methods of calculating Interest?

A: Traditionally, there are two methods of calculating interest : 1. Simple interest rate method 2.…

Q: How VAT affects the interest rate?

A: Solution-Value Added Tax  A value-added tax (VAT) is a consumption tax placed on a product whenever…

Q: Define the term Monetary liabilities.

A: Liabilities: The claims creditors have over assets or resources of a company are referred to as…

Q: Describe the methods of calculating interest?

A: In the finance industry, every decision revolves around the interest rate. This is a crucial…

Q: Define real risk-free interest rate

A: Real Risk Free Interest Rate is a theoretical concept which refers to the required return required…

Q: clarely distinguish between nominal internest rate and effective interest rate

A: Nominal interest rate are simple interest rates that don't consider the effect of compounding.…