Does Compounding Occur at a Different Rate than that at which payments are made? How?

Q: Is the Compounding Period equal to Payment Period? When does this situation arise?

A: Compounding period is period by which the interest is paid or added to the principal. Payment period…

Q: What are the Uneven-Payment Series?

A: What are the Uneven-Payment Series.

Q: How can we find the present worth of any uneven stream of payments?

A: The question is based on the concept of present value of uneven cash flow

Q: of computing vat payable

A: VAT refers to the type of tax imposed by the government over the sale of goods and services.

Q: Is the Compounding Period Equal to Payment Period?

A: Compounding period refer to the number of times the interest is paid on the amount deposited or the…

Q: When are credits increases? When are credits decreases?

A:

Q: state the limitations of the payback pe

A: Answer : The payback period is the quantity of time needed for cash inflows generated by a project…

Q: The value of a series of payments is similar to the maturity value in a compounding transaction.…

A: Compound interest: It shall be measured on the principal sum and also on the accrued interest of…

Q: Does the Compounding occur at a different rate than that at which payments are made?

A: No, as compounding occurs at the same rate as compared to that at which payments are made.

Q: Explain the sequential payout tranche structure?

A: Sequential payout tranche structure In this type of structure interest payments are received by…

Q: a)  Explain the difference between: Capital expenditure and revenue expenditure, giving an example…

A: Capital Expenditure: It is a expenditure made by company to acquire or renovate a property, plant or…

Q: What are the most frequent uses of contingent payments?

A: A contingent payment is a mechanism used in M&A whereby, in addition to an upfront payment,…

Q: What do we mean by a uniform series payment?

A: Under uniform series of payment, payment of same amount is made or received at a regular time…

Q: Explain Payment Caps and Negative Amortization?

A: Payment Caps: A payment cap is a customer protection that bounds the amount that your monthly…

Q: Write an equation for determining the value of the series of end-of-period payments?

A: Formula:

Q: What is the meaning of Installment Sales?

A: Installment sale: It is one of a few potential income acknowledgments approaches under the Generally…

Q: What is issue of payments deficits

A: Introduction:- payment of deficit means:- Country imports more goods, services, and capital than…

Q: Give an example assuming that  the Compounding Period equals to Payment Period?

A: The representation on the basis of assumption:

Q: How is the Compounding Period equal to Payment Period? Give an example?

A: The annual payment of $7,000 and compounding is to done semi-annually then compounding period 2 will…

Q: What is Form of payments

A: Payments are the consideration paid for buying goods or for receiving services. Goods include…

Q: How is the receivables turnover ratio measured? What does this ratio indicate? Is a higher or lower…

A: Receivables turnover ratio is measured by dividing net credit sales of a period by average accounts…

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: How can we determine the amount of a periodic payment?

A: The amount of periodic payment is determined using the following formula:

Q: ired to remit this payment?

A: As per IRS ,if the due date for payment of  federal tax falls on Saturday , Sunday or national…

Q: ermine the amount of each payment?

A: Loan: The loan is a value that is borrowed from external sources like banks and this amount is…

Q: What are the essential differences among demand deposits, savings deposits, and time deposits?

A: Deposits refers to the sum of money that are deposited with banks or any financial institution.…

Q: Whenever payment and compounding periods differ from each other, it is recommended to compute the…

A: The effective annual interest rate is the real return for a bank account or other interest paid…

Q: posit multiplier and money multiplier ? Explain.

A: Deposit Expansion Multiplier System The deposit expansion multiplier is also known as Deposit…

Q: Depending on the frequency of compounding, how can the effective interestearned (or paid by the…

A: The basic difference between compounding and simple interest is that simple interest is only offered…

Q: What is the present worth of a uniform series payment?

A: The present worth is the value of an asset at present considering an assumed discount rate, which…

Q: Describe situations in which you have an integration of future lump sumsand streams of equal and…

A: An annuity may be a set of similar to cash streams, which are settled at concurred interims and…

Q: what is the difference between co-pay and coinsurance

A: Coinsurance and copays are different variants of cost sharing arrangement between health insurance…

Q: What is the future worth of a uniform series payment?

A: The future worth is the value of an asset at a predefined future date which increases at a specific…

Q: What is the concept underlying the current rate method of translation? What is the concept…

A: There are two main methods of currency translation accounting: The current method -when the…

Q: Define the term Uneven-Payment Series?

A: Payment series: It can be defined as the sequential payments being made to another party over a…

Q: Why Pay back period method is not as effective as NPV?

A: Payback method  It doesn't consider account inflation as well as the cost of capital. It ignores…

Q: What do you mean by balloon payment?

A: Balloon payment:  A balloon payment is a big imbursement made at or nearby termination of a loan…

Q: Do the Compounding Occurs More Frequently than payments are made?

A: Compound interest - In this method, the interest is calculated on the balance at the end of each…

Q: What is the difference between the regularand discounted payback periods?

A: The Regular Payback period is one of the capital budgeting techniques. It refers to the time period…

Q: Suppose that all possible types of perpetuities (differentiated in payment starting periods and…

A: A perpetual annuity is a policy that you pay indefinitely. In finance, eternity is a constant flow…

Q: Define the term Non-comparable Compounding and Payment periods?

A: The question is based on the concept of interest rate calculation, which depend on the compounding…

Q: what give rises to the changes in PBO balance?

A: PBO stands for the Projected Benefit Obligation. It shows how much the company would need in its…