For a total accumulated amount of $3639.55, a principal of $2000, and a time period of 9 years, use the compound interest formula to find r, if interest is compounded monthly
Q: Calculate the Accounting Rate of Return (ARR) of the investment Internal rate of return (IRR)…
A: Accounting Rate of Return: It represents the rate expected to be earned by the project or…
Q: Assume that you are using the Capital Asset Pricing Model (CAPM) to find the expected return for a…
A: The Capital Asset Pricing Model (CAPM) is a financial model used to estimate the expected return on…
Q: Sofr interest rate is 8% for 9-month and 7.5% for 6-month (both per annum and continuous). The…
A: Sofr interest rate is 8% for 9-month and 7.5% for 6-month (both per annum and continuous) Formula to…
Q: it say that the answers are incorrect above^
A: Coefficient of Variation: It expresses a measure of statistics of the scattering of data points in…
Q: A credit card bill for $559 was due on September 14. Purchases of $283 were made on September 19,…
A: To find the finance charge, we need to first calculate the average daily balance for the billing…
Q: Avicorp has a $10.3 million debt issue outstanding, with a 6.2% coupon rate. The debt has…
A: The cost of debt is the yield to maturity of a bond. It is the rate at which borrowed funds can be…
Q: Walmart has just paid an annual dividend of $3.39. Dividends are expected to grow by 6% for the next…
A: The intrinsic value of the stock is the present value of future cash flows from the stock namely…
Q: Two bonds, each with a face value of $16000, are redeemable at par in n-years and priced to yield j4…
A: Bonds are debt instruments that the company issues for raising capital from investors. The amount…
Q: True or False: An investor would not want to purchase zero coupon bonds as there are no coupon…
A: Zero Coupon bonds-Such bonds do not pay interest during the tenure of the bonds. Such bonds are…
Q: it say all answers above are incorrect, please enter answers in millions
A: Coefficient of Variation: It represents a measure of statistics of the scattering of data points in…
Q: Consider a 10-year bond making annual coupon payments at a rate of 8% with a face value of $1000.…
A: Bonds are fixed-income assets that serve as a representation of investor loans to borrowers…
Q: final answer to 2 decimal places.)
A: for 8 years and 1/2 years= 8*2+1= 17 times. annual interest rate = 4.6%, so semiannual = 4.6/2=…
Q: Use the following information Year 0 1 2 3 Cash flow -$1000 $300 $500 $700 WACC= 8.0% Calculate:…
A: The difference between the current value of cash inflows and outflow of cash over a period of time…
Q: You manage a risky portfolio with expected rate of return of 18% and standard deviation of 28%. The…
A: As per the guidelines, I am required to answer only the first three questions. The capital…
Q: 3500 2 3000 3 3100 4 2800
A: to all discounted cash inflows after the year of investment. By using the excel it can be easily…
Q: Compare the alternatives below using present worth analysis at MARR 10% per year and a 3-year study…
A: It is a problem that requires the application of the net present value method to compare two…
Q: Bond X is a premium bond making semiannual payments. The bond has a coupon rate of 9.7 percent, a…
A: Given, two bonds Bond X and Bond Y Both bonds have face value of $1000
Q: Suppose that you drive 24,000 miles per year and gas averages $4 per gallon. a. What will you save…
A: This is a case of financial analysis of fuel costs. Fuel costs depends on two factors – no. of miles…
Q: 1. For each of the following cases, calculate the future value of the single cash flow deposited…
A: According to bartleby guidelines , if question involves multiple subparts , then 1st sub 3 parts…
Q: (Related to Checkpoint 9.1) (Floating-rate loans) The Bensington Glass Company entered into a loan…
A: The floating rate was 0.27% over an index based on LIBOR. Maximum annual rate = 2.17% Minimum…
Q: Hanmi Group, a consumer electronics conglomerate, is reviewing its annual budget in wireless…
A: Profitability Index or PI is the ratio of present value of operating cash inflows to the present…
Q: What's your position on the valuation of domestic debt exchange (DDE) eligible bonds,
A: Domestic debt exchange (DDE) eligible bonds are debt securities issued by a government that can be…
Q: Kimberly Jensen of Storm Lake, Iowa, wants to buy some living room furniture for her new apartment.…
A: The annual percentage rate, or APR, is made up of the loan's stated interest rate plus fees,…
Q: The balance sheet of Bayes Bank is represented in the table below. All figures are in millions of US…
A: The Balance Sheet of Bayes Bank is represented in the question , if interest rate expected to…
Q: The next problem is about covered interest rate parity. Assume that the home country is the…
A: Here: iPH = interest rate in the Philippines = 8% iUS = interest rate in the US = 12% et+1 = 1-year…
Q: Allen Air Lines must liquidate some equipment that is being replaced. The equipment originally cost…
A: After-tax salvage value refers to the amount of equipment after the completion of its useful life…
Q: Calculate the table factor, the finance charge, and the monthly payment (in $) for the loan by using…
A: APR stands for Annual Percentage Rate. It is a measure of the cost of credit, expressed as a yearly…
Q: Mercer Corp. has 10million shares outstanding and $69 million worth of debt outstanding. Its current…
A: The Modigliani-Miller theorem (MM) states that the market value of a company is calculated by its…
Q: NoGrowth Corporation currently pays a dividend of $0.48 per quarter, and it will continue to pay…
A: A share price refers to the stock price that is traded in the share market. Investors can evaluate…
Q: Chris has decided to create a retirement fund. He will deposit $250 at the end of each month for the…
A: An annuity is a stream of equal cash flows occurring at regular intervals. the future value of an…
Q: 6 erasers cost $6.60 Which equation would help determine the cost of 3 erasers?
A: The question is asking us to use an equation to determine the cost of 3 erasers, given that 6…
Q: The following statement is the definition to which of the following answers down below?: The…
A: When the term "non-monetary return" is used, it means that the return or benefit received from an…
Q: Travis Industries plans to issue perpetual preferred stock with an $11.00 dividend. The stock is…
A: Dividend = $11 Net Price = $80.96
Q: Assume the risk-free rate is 5% and the market return is 12%. If inflation increases in the market…
A: A line that is drawn on a chart to depict the capital asset pricing model graphically is called the…
Q: Suppose Olivia has $7,020 in credit card debt on the B credit card which has annual interest rate of…
A: Credit Card: It represents a card issued by the banks as a service of allowing cardholders to…
Q: Problem 5. The next problem is about covered interest rate parity. Assume that the home country is…
A: To solve this problem, we need to use the covered interest rate parity (CIRP) formula: (1 + iPH) =…
Q: he Yoran Yacht Company (YYC), a prominent sailboat builder in Newport, may design a new 30-foot…
A: Given data depicted through Diagram: Cost of capital=14%
Q: A company can borrow for five years at 4%. Five-year interest rate swaps are quoted as bid 3.21%,…
A: A company can borrow fixed at 4%. However it wants to achieve a floating rate. This is possible…
Q: A loan of 109,517.20 is being repaid with level annual payments of K at an annual effective interest…
A: A loan is being amortized by level payment. The quantum of principal repaid in a particular payment…
Q: Number of payments. Tony is offering two repayment plans to Phil for a long overdue loan. Offer 1 is…
A: Data given: Offer 2: PV=Loan amount=$16000 PMT=$4200 Rate=16% Required: Time required to payoff…
Q: Show that options are riskier than the underlying assets
A: Options are financial instruments that give the holder the right, but not the obligation, to buy or…
Q: Mr. John Backster, a retired executive, desires to invest a portion of his assets in rental…
A: It is a problem that requires the selection of avenues, based on the coefficient of variation. A…
Q: OptiLux is considering investing in an automated manufacturing system. The system requires an…
A: Net Present Value (NPV) is a financial concept used to determine the current value of a series of…
Q: You are evaluating a capital investment that promises in year 1 revenue of $480,000.00 with…
A: Free cash flow (FCF) is a measure of a company's financial performance that represents the cash flow…
Q: Discuss the role data analysis plays in financial management of an organization
A: The administration of an organization's finances depends heavily on data analysis. Making choices…
Q: Barney Farnsworth is unable to afford the proposed insurance premium to insure his hobby shop.…
A: Insurance is a financial product that provides protection against financial losses resulting from…
Q: Using the following information for Mcdon, Inc. Stock: Rate of Return Probability Boom 14% 20%…
A: Standard deviation and coefficient of variation is determined using the below formula:
Q: Drag each tile to the correct location. Identify the type of savings fund that's best suited for…
A: A reserve fund refers to a fund established by a person or an entity to meet unexpected future…
Q: Jarett & Sons's common stock currently trades at $22.00 a share. It is expected to pay an annual…
A: Formula; Cost of common equity = (D1 / P0) + g Where; D1 = Next dividend= $2.25 P0 = Current stock…
Q: Ross Enterprises can raise capital from the source below: Ross has a new project that has an…
A: Weighted average cost of capital refers to the cost that is expected to pay while raising the…
Step by step
Solved in 2 steps
- Sharapovich Inc. borrowed $50,000 from Kerber Bank and signed a 5-year note payable stating the interest rate was 5% compounded annually. Sharapovich Inc. will make payments of $11,548.74 at the end of each year. Prepare an amortization table showing the principal and interest in each payment.Halep Inc. borrowed $30,000 from Davis Bank and signed a 4-year note payable stating the interest rate was 4% compounded annually. Halep Inc. will make payments of $8,264.70 at the end of each year. Prepare an amortization table showing the principal and interest in each payment.On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10% interest rate. Each annual payment is in the amount of $39,569 and payment is due each Dec. 31. What is the journal entry on Jan. 1 to record the cash received and on Dec. 31 to record the annual payment? (You will need to prepare the first row in the amortization table to determine the amounts.)
- Use Future Value and Present Value Tables to Apply Compound Interest to Accounting Transactions Kristen Quinn makes equal deposits of $500 semiannually for 4 years. Required: What is the future value at 8%? (Note: Round answers to two decimal places.)Jain Enterprises honors a short-term note payable. Principal on the note is $425,000, with an annual interest rate of 3.5%, due in 6 months. What journal entry is created when Jain honors the note?If a principal of P3840 earns interest of P204 in 3 years and 5 months, what is the simple interest rate in effect? In 2 decimal places in percent
- If the principal of Php 2,500.00 earns interests of Php 185.00 in 4 years and 8 months, what interests rate is in effect? Solve comprehensively.If the principal of Php 2,500.00 earns interests of Php 185.00 in 4 years and 8 months, whatinterests rate is in effect?businessman invested P1,000.00 and after 4 years, it becomes P1,608.44 when he investedat a certain rate of interest compounded bi-monthly. Determine the nominal rate and thecorresponding effective rate.
- The principal represents an amount of money deposited in a savings account subject to compound interest at the given rate. Find how much money will be in the account after the given number of years (Assume 360 days in a year.), and how much interest was earned. A = PntP = A = PertY = n - 1Principal: $6500Rate: 7%Compounded: quarterlyTime: 4 yearsSharapova Inc. borrowed $50,000 from Kerber Bank and signed a 5-year note payable stating the interest rate was 5% compounded annually. Sharapova Inc. will make payments of $11,548.74 at the end of each year. Prepare an amortization table showing the principal and interest in each payment. Annual Period Interest Expense Annual Payment Principal Payment Ending Balance 1 2 3 4 5 PLEASE NOTE: All dollar amounts will be rounded to two decimal places with "$" and commas as needed (i.e. $12,345.67). For the journal entry, you must enter the account names exactly as written below and for accounts having similar accounting treatment (DR or CR), you are to record Balance Sheet accounts first, followed by Income Statement accounts. Based on the amortization schedule above and using the following accounts, Principal Payment Cash Interest Income LT Notes Payable Annual Payment Interest Expense provide the journal entry for the…How much principal is needed to accumulate $46,640 in simple interest at 5.8 % for 8 years?
