Q: What is a simple interest rate?
A: Interest is the cost of borrowing money, where the borrower pays a fee to the lender for the loan or…
Q: Mortgage backed securities pass through all payments of interest and principal received on a pool of…
A: Mortgage-backed securities are generally the variations of assets-backed securities formed by…
Q: why yield to maturity is important in pricing loans in financial system?
A: Yield to Maturity is the rate of return or the interest rate of a fixed-rate security, such as a…
Q: Discuss the uses of Mutual Funds. a) Diversification of Investments
A: Diversification refers to putting together a portfolio of shares from various asset groups. It…
Q: Define the term an amortized loan?
A: An amortized loan is a form of loan with scheduled, regular payments that relate to both the…
Q: Why is using home equity a risky way to make purchases that do not add to your assets? It's not…
A: Home equity loans make it easier for homeowners to borrow money from equity at home. However, equity…
Q: Karen Wilson thinks that she needs to borrow $7,600 for 2 She doesn’t have a very good credit…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Compare credit, savings, and investment services available to the consumer from financial…
A: Financial institutions, which include lenders, financial agencies, insurers, and securities dealers,…
Q: What is Effective interest?
A: Effective interest rate can be described as the interest rate gained or paid in actual on a project.…
Q: Which pair of phrases correctly matches the specific type of loan with the broader category it best…
A: Answer: Student loans are generally given for a long period of time. It is because students take a…
Q: When selecting a financial institution, you should consider: (select all that apply) convenience,…
A: Financial Institution is an institution such as central banks, commercial Banks, credit unions etc.…
Q: The connection between financial management and financial market
A: Answer: A financial market refers to a market where the trading of securities takes place, financial…
Q: What is fractional ownership?
A: Ownership:The term ownership refers to the legal right or exclusive right over the commodity. For…
Q: Outline the advantages and disadvantages of equityfinancing.
A: Equity financing can be understood as a source of raising funds by selling shares in the market. In…
Q: When investing or saving money for retirement, which type of interest would benefit the most from?…
A: When investing or saving money for retirement which type of interest would benefit the most from?…
Q: Distinguish between Simple interest and Compound Interest?
A: Interest rate refers to the percentage of a principal amount charged by a lender to a borrower.
Q: A credit plan charges interest rate of 30% compounded monthly. Find its effective rate.
A: Given information, Interest rate: 30% Compounded period: 12 (monthly) To find: effective rate
Q: You plan to purchase an $130,000 house using a 30-year mortgage obtained from your local bank. The…
A: A mortgage payment is typically made up of four components: principal, interest, taxes and…
Q: Mary Smith took out a loan of $75,000. The loan runs for five years at a minimum interest rate of…
A: here we calculate how much is each monthly payment to Mary Smith by following method given below
Q: Which type of security has interest payments that are generally exempt from federal income taxes?…
A: T-bonds or Treasury bonds are fixed-rate government debt security by the U.S. with maturity mostly…
Q: Interest rates: why are interest rates increasing on student loans or mortgages?
A: Secured Loan:- A secured loan is one that is supported by secured financial assets owned by the…
Q: Write the formula of Effective interest?
A:
Q: What are the factors determining the changes in interest price and in what way? Analyze on a…
A: There exists positive relationship between money demand and interest price. If the money demand…
Q: How can we calculating effective Interest Rates based on Payment Periods?
A: The effective annual interest rate is the interest rate on investment or return on a savings account…
Q: 43) Which is a term that would be included in a bond indenture? a) Interest rate b) Dividend c)…
A: Since you have asked multiple questions, we will solve the first question (Q#43) for you. If you…
Q: f you deposit $10000 into a fund paying interest 6%. How much you get after one yea
A: Given the deposit amount = $10000 Interest rate = 6%
Q: Explain Borrowed-Funds Concept?
A: A firm can raise capital to finance its investment projects via borrowing or equity. Borrowed…
Q: Differentiate between Simple interest and Compound interest?
A: In economics, interests are the costs of borrowing money. The economic agent who is borrowing the…
Q: What is Compound interest?
A: Simple Interest: The simple interest is the interest that is paid on the principal amount. For…
Q: difference of the demand of financial services
A: Financial services include a wide range of economic activities like investing, managing insurance,…
Q: Define the term Yield to Maturity?
A: Yield to maturity (YTM) is a rate of return of a bond or debenture if it held till its maturity date…
Q: What is the maturity date of a loan taken out on September 9, 1998 for 125 days?
A: The loan is taken out on September 9, 1998, for 125 days So maturity date of this loan will be 125…
Q: Sarah Maddox wants to buy a new car that will cost $15,000. She will make a down payment in the…
A: (a) The individual wants to purchase the new car and the cost of the car is given to be $15,000 and…
Q: Write the Summary of Compound-Interest Formulas?
A: Answer - Compound-Interest Formula - Compound interest formula helps to calculate the total return…
Q: 3.57 Consider the following three individuals. Just after their 19th payment: o Robert Dixon had a…
A: An installment loan is an expansive, general term that alludes to by far most of both individual and…
Q: Why certificate of deposit is considered as lending investment
A: Answer-
Q: What is the difference between a secured loan and anunsecured loan?
A: A loan is when money is being given to another party in exchange for repayment of the principal…
Q: Explain with detail about interest rate deposit facility and lending facility
A: Answer-
Q: Use the internet to research the Unitedhealth care group set of bonds issued. Based on the bonds’…
A: Am not able to download the Unitedhealth Group issued bonds unfortunetly. I tried downloading this…
Q: Discuss and illustrate the different types of annuity.
A: Annuity refers to the contract between an individual and the insurance company where the individual…
Q: Which Interest rate is better to use the simple interest or compounded interest plan, explain your…
A: The interest rate is the amount charged on the principal by the borrower to the borrower to use the…
Q: Causes and effects of low interest rates
A: The interest rate is determined by the intersection of demand and supply of loanable funds. It is…
Q: Which client had to have the financial services flow sent to them?
A: The economy is comprised of a wide range of sections called sectors. These sectors are contained…
Q: Construction loans fit under the loan category known as .......
A: Construction loan is taken in order to finance construction or building of a house. Another name for…
Q: A _________ is a share of a corporation that may be bought and sold.
A: A share of stock is a unit of owner ship in a corporation. Stock may be purchased by individuals,…
Define interest and explain how interest rates vary based on risk, maturity, loan size, and taxability.
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- Create a useful plan for how a firm may raise finantial capital.Explain with detail about interest rate deposit facility and lending facilityGreg wants to have $50 000 in five years. He has $20 000 today to invest. The bank is offering five-year investment certificates that pay interest compounded quarterly. What is the minimum nominal interest rate he would have to receive to reach his goal?
- You take out a loan of $12,000 to pay for a piece of equipment. You plan to repay the loan in 16 years. You can afford to pay a maximum of $1,100 each year. What interest rate would allow for you to pay off the entirely of the loan in equal payments?What is an interest “reference rate,” and how is it used to set rates for individual borrowers? From the point of view of a borrowing corporation, what are credit and repricing risks? Explain the steps a company might take to minimize both.What is Compound interest?
- Outline the advantages and disadvantages of equityfinancing.Secured loans are backed up with assets that the lender can claim in case of default. True or false ?Karen Wilson thinks that she needs to borrow $7,600 for 2 She doesn’t have a very good credit rating, so most finance companies want to charge her a high interest rate. She finally finds a lender that will loan her the money at 12% compounded monthly. How much interest will Karen have to pay to this particular lender? William Wang wants to borrow money from his father to buy a car. William’s father is trying to teach him how to manage money, so he agrees to loan him the money, but at 5% compounded William borrows $11,200 and repays everything—principal plus all of the interest—in years. How much does William pay back to his father? Don Hildebrand is trying to decide whether to invest money in a bank or in something a little riskier that will pay a higher return. One very simple investment promises to pay a minimum of 8% compounded annually, but he must leave all of the money and interest invested for 9 years. How much interest will Don earn during the 9 years if he invests…