Answered: fy received 18,600 from his original…

fy received 18,600 from his original 21,000 salary loan. If the lending company charged him 10.2% discount rate, what was the term of the loan in days? (Round up your answer)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter16: Working Capital Policy And Short-term Financing

Section: Chapter Questions

Problem 14P

See similar textbooks

Related questions

Q: A vertical common-size income sheet expresses each category of the income statement as a percentage…

A: Financial statements are the statements where the performance of the organization is shown. The…

Q: 3. Consider two investments which have each produced returns over a period of seven years.…

A: The mean of the return refers to the average return of an investment that can replace all the actual…

Q: Verstappen Motor Holdings is preparing its budget for the year ended 31 March 2022. The following…

A: We need to run the regression on the data given to find the linear relationship between the total…

Q: Vince Oliver plans to invest P30,000 in municipal bonds, savings bonds,and treasury bills. He wishes…

A: Given Information - Total amount of Investment = P 30,000 Modes of Investment along with Interest…

Q: The financial staff of Cairn Communications has identified the following information for the first…

A: Given: Particulars Amount Projected sales $22,000,000 Operating cost $9,000,000…

Q: Your portfolio has had a 15% rate of return with a standard deviation of 18% and a beta of 1.1. The…

A: Sharpe ratio is a measure of the return of a portfolio provided per additional unit of risk. It…

Q: You deposit $1.2 million into your account to cover expenses in the next 12 years. The account earns…

A: We have an initial balance to support the living expenses of next two year. We have to find the…

Q: What is 26% of 756

A: The percentage indicates the value in terms of the hundredth part of an amount. The percentage can…

Q: Joyce has never invested in shares before. She has come to you, as a prospective finance graduate,…

A: Here, Required Rate of Return (RRR) = 8.75% Dividend paid this year = $1.3 Growth rate = 4.5% To…

Q: Joe’s starting salary as a mechanical engineer is around $80,000. Joe is planning to place a total…

A: Given, Joe’s starting salary = $80,000. 10% of his salary each year in the mutual fund. 5% salary…

Q: You have just sold your house for $1,100,000 in cash. Your mortgage was originally a 30-year…

A: Given, Value of house $700,000 Rate is 5.25%Term is 30 years

Q: You observe that the current interest rate on short-term U.S. Treasury bills is 4.86 percent. You…

A: Nominal rate = 0.0486 Inflation rate = 0.0165 Real rate of interest = ? Real rate of interest is…

Q: Peter Company acquired 80 percent of the common stock of Paul Company on January 1, 2022, when Paul…

A: An investment account refers to an account that is current in nature that is linked with the…

Q: Based on the growth rate determined in part a, project earnings for next year (E1). (Do not round…

A: Price of stock can be determined by the constant growth of dividend and required rate and the…

Q: Mrs. Oliver is negotiating to purchase a tract of land from DC Company, a calendar year taxpayer. DC…

A: After-tax cash refers to the cash flow after deducting the amount of tax. It is used for determining…

Q: The yield to maturity on one-year zero-coupon bonds is 8.4%. The yield to maturity on two-year…

A: As per the given information: Yield to maturity on one-year zero-coupon bonds - 8.4%Yield to…

Q: Your client Ben is in his late 30s (married, with two kids) and working as a full-time doctor in ZZ…

A: Investment are important for better life but doing investment involves risk also so there should be…

Q: What is the required return for asset X if it has a beta of 1.5, the expected market return is 15…

A: The Capital Asset Pricing Model (CAPM) refers to the model which tells us how the financial markets…

Q: o i need formulas Annual Interest Rate: 3.69% Length of Loan (in years): Loan Amount:…

A: Loans are paid by the equal installments and these installments carry the payment for interest and…

Q: Which of the following statements is not true about mortgages? O Mortgages are examples of amortized…

A: Mortgages are loans given to an individual to buy a property. These are usually long-term loans…

Q: Bob is single and his tax rates are 10% on the first $8375 of taxable income, 15% of the amount over…

A: Taxable income = $61,090 Taxable income Slab Tax rate 0-8375 10% 8375-34000 15% 34000-61090…

Q: Examine the effect of the actions below on the current ratio. Assume that the prevailing current…

A: Current ratio is a ratio that explains the relationship between current assets and current…

Q: A stock is in equilibrium if its expected return its required return. In general, assume that…

A: Given: Stock Beta Standard deviation Expected return Risk free rate Market risk premium A 0.5…

Q: Calculate the net asset value (in $) and number of shares purchased for the mutual fund. Round…

A: Net Asset value = (Total Asset – Total Liabilities) / no of shares outstanding Shares Purchased =…

Q: During World War II, Coca-Cola Co. cut off all syrup sales to Germany in 1940, resulting in no sales…

A: Sales in Germany 1934 = 243,000 Sales in Germany 1936 = 1,000,000 Sales in Germany 1939 = 4,500,000…

Q: An investor wants to design a complete portfolio with an expected rate of return of 15% from two…

A: Portfolio return, risk and the optimal portfolio: The portfolio return is the sum of the products of…

Q: Bond X has 20 years to maturity, a 8% annual coupon, and a R 1,000 face value. The required rate of…

A: We have to find the price of the bond to be paid now, so as to get a target return on it, by holding…

Q: The principal of the time value of money is probably the single most important concept in financial…

A: Time value of money: The time value of money concept states that the value of money today is worth…

Q: Which is a better offer? Provide your computation to prove your answer. 1. You need 120,000 to start…

A: Step 1: In this question we will be evaluating the loan credit of following since you need 120,000…

Q: How can you know whether a project will be profitable? What purpose does TCO serve?

A: The management evaluates the project before accepting the project, the management has to decide…

Q: A construction company plans to open an account for a major future equipment purchase. The plan is…

A: An annuity pays a fixed sum at regular intervals to save for a future lump-sum payment. It uses the…

Q: Kevin holds a $10,000 portfolio that consists of four stocks. His investment in each stock, as well…

A: Systematic risk is the risk that a company faces because of the overall condition of the market. It…

Q: While comparing two bonds with the same face value, the price is all you need to determine which one…

A: Investment Bonds: Investment bonds are financial securities in which the authorized issuer owes a…

Q: Michael wants to have $20,000 in an investment account seven years from now. The account will pay…

A: Future Value $ 20,000.00 Time Period (Years) 7 Interest Rate…

Q: On January 1st, 2019 you put $1000 into an account growing at 2% APR compounded daily. Starting that…

A: 1) Future value = Present value * (1 + Interest rate)n where Interest rate = 2%/365 = 0.0000547945…

Q: A $1,000 face value bond has a conversion ratio of 40. You estimate the transaction costs of…

A: Face value = $1000 Conversion ratio = 40 Transaction cost = 0.028 Stock price = ?

Q: It is proposed to purchase a certain machine, in the amount of R$92,087.08, for profitable purposes,…

A: 1) Current Value( Net Present Value) is the difference between Present value of cashinflows and…

Q: If a one year treasury bill you can buy today for $909.09 has a face value of $1000. Its yield to…

A: The treasury is the debt instrument issued by the government. The treasury bill is issued at…

Q: Perpetuities are also called annuities with an extended or unlimited life. Based on your…

A: As per Bartleby guidelines, If multiple questions are posted, only the first 1 question will be…

Q: The current zero-coupon yield curve for risk-free bonds is as follows: Maturity (years) 1 2 3…

A: Bonds are a form of debt or obligation being issued by the business for the purpose of raising…

Q: What rate of interest compounded annually is the same as the rate of interest of 6% compounded…

A: Concept . A = P (1+R)n Where A = amount avaliable after compound interest. P = principal amount. R…

Q: kenneth just graduated from college and has started his fisrt job in sales. basedd on conversation…

A: The debt-to-income ratio refers to the comparison of the monthly debt payment and gross monthly…

Q: xper lysis Re nas information about three companies you are currently evaluating: Company Degree of…

A: DOL is degree of operating leverage shows changes in operating income with change in sales and DFL…

Q: Your company wants to raise $8.5 million by issuing 10-year zero-coupon bonds. If the yield to…

A: Information Provided: Bond current value = $8,500,000 Yield to maturity = 5% Period of bond = 10…

Q: In 1626, Dutchman Peter Minuit purchased Manhattan Island from a local Native American tribe.…

A: Given, The purchase price is $24 Rate is 5.5%

Q: If I invest P10,387 today and expect a reimbursement every 6 months with a rate of 11.54% compounded…

A: Reimbursement: In an investment context, an act by which an investor gets back the money is…

Q: You invested $5,000 in an account 16 years ago. This account paid 8% compounded monthly for the…

A: Given, Amount invested is $5,000 Term is 16 years

Q: (Related to Checkpoint 9.3) (Bond valuation) Calculate the value of a bond that matures in 12 years…

A: Par Value = $1,000 Time Period = 12 Years Coupon Rate = 14% Yield = 15%

Q: Table attached shows the historical returns for Companies A, B and C If one investor has a…

A: The expected return of the stock refers to the profits that the stock provides on average. It is…

Q: Financial products go through a lifecycle as well; however, the stages of the product lifecycle for…

A: Financial products are intangible products that meet our financial needs. Examples of financial…

Concept explainers

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.

Question

Raffy received 18,600 from his original 21,000 salary loan. If the lending company charged him 10.2% discount rate, what was the term of the loan in days? (Round up your answer)

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Samuel Ames owes 20,000 to a friend. He wants to know how much he would have to pay if he paid the debt in 3 annual installments at the end of each year, which would include interest at 14%. Draw a time line for the problem. Indicate what table to use. Look up the table value and place it in a brief formula. Solve.
If instead of paying ₱34,500 after 3 years, Joseph was required by the lender to pay ₱34,850 what is the rate of interest applied on the loan
Franki finances a motor home for $44,700 by taking out an installment loan for 36 months. The payments were $1,764.31 per month and the total finance charge was $18,815.16. After 25 months, Franki decided to pay off the loan. After calculating the finance charge rebate, find the loan payoff amount.
Shantel purchased a car for $22,000; she paid $2200 as a down payment and financed the balance amount at 2.9% compounded monthly for 4 years. a) What is the size of payment made at the end of every month to settle the loan? b) What was the amount of interest charged for the entire loan? c) If Shantel pays an additional $200 per month, how many periods will it take to payoff the load? d) If Shantel pays an additional $200 per month, how much interest will be saved?
A customer bought a used car for $24,650. The customer’s down payment was $6,000 and the repayment will be $414 per month, for 48 months. What are the following: (Show your calculations) a) Amount financed?b) Total installment price? c) Finance charge?
Luis paid off a loan by making a payment of $4,050, which included simple interest of 3% p.a. If he obtained the loan 6 months ago, calculate the amount borrowed and the amount of interest paid on this loan. Amount borrowed: Round to the nearest cent Amount of interest paid: Round to the nearest cent
Mr. Smith's annual salary is $230,000.  He has been on his job for the past four years.  His current pay stub from 6/30 of this year shows YTD gross income of $113,712, the previous year's W-2 shows $210,549 AND the year before that his W-2 shows $198,782. What is the base monthly income you would put on the loan application?
Juan took out a $20,000 loan for 146 days and was charged simple interest.The total interest he paid on the loan was $488.As a percentage, what was the annual interest rate of Juan's loan?Assume that there are 365 days in a year, and do not round any intermediate computations.
Joshua borrowed $500 for one year and paid $50 in interest. The bank charged him a service charge of $5. If Joshua repaid the loan in 12 equal monthly payments, what is the APR? (Enter your answer as a percent rounded to 1 decimal place.)
Tim Huston purchased a wall unit for $2,200. He made a $600.00 down payment and financed the balance with an installment loan for 48 months. If Tim’s payments are $42.59 per month, use the APR formula to calculate what annual percentage rate he is paying on the loan. (Round your answer to two decimal places)
Joshua borrowed $800 for one year and paid $40 in interest. The bank charged him a service charge of $7. If Joshua paid the $800 in 12 equal monthly payments, what is the APR?
On March 1, 2012, Jason's Deli loaned $12,000 to Mark Johnson for one year at 5 percent interest. Required:- Answer the following questions. What is the total amount of interest Jason's Deli earned from the loan to Mark Johnson?