I borrowed $10,000 at 4% on a 60-month term and found the monthly payment to be $184. How much do I actually pay the lender over the course of the loan?

Q: Over a 25 year an asset had an arithmetic return of 3.1% and a geometric return of 12.6%. Using…

A: Solution:- Blume’s method gives the formula to calculate estimate of future returns using past data.…

Q: A 3-year 10% annual coupon bond yields 5%. The dollar price for the face value of $1000 is…

A: Price of bond is $1,136.1624 Macaulay duration is 2.7525 YTM is 5% To Find: Modified duration New…

Q: rson established a trust fund that provides $172, 500 in scholarships each year for worthy students.…

A: The amount required today depends on the annual payment and interest rate and changes based on that…

Q: a. Use the appropriate formula to determine the periodic deposit. b. How much of the financial goal…

A: Solution:- When an equal amount is deposited each period at end of period, it is called ordinary…

Q: A toy company Toys For Kids (TFK) operates two divisions: Electronic Toys and Stuffed Toys. The…

A: Market value of the firm can be calculated as present value of free cash and value at the end that…

Q: 2.3 Masuku Ltd is evaluating a 5-year project with an operating (before tax) profit of R100 000 in…

A: NPV The difference between the cash inflow of the projects and the cash outflow of a project is…

Q: Given an annual rate of payment of f (t) 50e0.08t at time t for 7 years and a constant force of…

A: We have been provided with continuously varying payment stream and the force of interest. We have to…

Q: Mossdale Manufacturing Company pays the regular hourly rate for the first 40 hours worked and time…

A: Regular Hourly pay is $15.60 Total hours worked is 46 hours Regualar hours are 40 Overtime is 6…

Q: Stephanie Carter has been gifted a sum of $50,000 by her grandparents on completing her graduation…

A: Given: Particulars Pan Elixir Rebound Cheers Think local Last year dividend $2.50 $0.50 $1.00…

Q: After examining the various personal loan rates available to​ you, you find that you can borrow…

A: The effective annual rate, abbreviated as EAR, is used to calculate the real adjusted necessary rate…

Q: Suppose  an investor buys a bond with a nominal value of €  10,000 and a maturity of four years.…

A: Here, Face value of the bond (FV) = €10,000 Term to maturity (NPER) = 4 years Yield to maturity…

Q: To purchase a specialty guitar for his​ band, for the last two years JJ Morrison has made payments…

A: Firstly we will calculate accumulated value of last 2 years using future value of annuity formula.…

Q: DeSoto’s, Inc. has announced that its next annual dividend has been set at $3.75 per share. The…

A: The price of share will be calculated by Gorden's Model. As per Gorden's Model the share price will…

Q: Discuss about that how monetary policy is helpful for Economy.

A: Monetary policy plays an important role in the development of an economy. By pursuing expansionary…

Q: (Related to Checkpoint 9.2) (Yield to maturity) The Saleemi Corporation's $1,000 bonds pay 7 percent…

A: The yield of maturity refers to the rate of return that shows the earned income from the bond…

Q: The Maybe Pay Life Insurance Company is trying to sell you an investment policy that will pay you…

A: Given, Annual payment is $23,000 Required return is 5.3%

Q: Project A has an IRR of 15 percent. Project B has an IRR of 18 percent. Both projects have the same…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Honda Fit Ltd purchased a new piece of machinery to expand the production output of its…

A:

Q: (b) With a constant monthly payment of $40 per month, how many years would it take to pay off the…

A: Credit card are very common now days but the charges are very much so one has to very careful when…

Q: ABC Appliances contracted to provide kitchen appliances for an apartment complex for $93,500.…

A: Summary: ABC Appliances contracted to provide kitchen appliances for $93,500. Several months later,…

Q: a) You have a bank account that earns 6.8% interest rate. How much must you deposit (prinicipal) in…

A: The Future Value is calculated with the help of following formula  Future Value = Principal Amount ×…

Q: what payments 2 months from now would be equivalent in val to a $5650 payment due in 13 month and…

A: Simple interest is simple interest that means there will be no interest on interest will be there…

Q: Hi there, This question is for corporate finanace: What is the present value of $10,000 received…

A: Present Value refers to a concept that states the discounted value or say value at today's time of…

Q: You would like to have $800,000 when you retire in 30 years. How much should you invest each quarter…

A: Amount required (FV) = $800,000 Quarterly interest rate (r) = 0.005 (i.e. 0.02 / 4) Number of…

Q: Too much information technology (IT)sophistication within the financial service industry has…

A: Information technology refers to the use of computer systems or technologies to obtain information…

Q: Krista borrowed $14,095. The loan is to be repaid by three equal payments due in 88, 169, and 252…

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Q: Waterworks has a dividend yield of 5.87 percent. If its capital gain yield is expected to be 4.88…

A: Expected return The least return that investors expect from the investments they made in order to…

Q: A share of common stock just paid a dividend of $ 1.47 . If the expected long-run growth rate for…

A: Solution:- Dividend Discount Model (DDM) is one of the models of stock valuation. As per DDM, P0 =…

Q: (Calculating free cash flows) At present, Solartech Skateboards is considering expanding its product…

A: Initial expenditure  $ 11,00,000.00 Net working capital requirement  $      40,000.00 Selling…

Q: You bought one of Great White Shark Repellant Company's 8 percent coupon bonds one year ago for…

A: Real return The return received from an investment or project after deducting the inflation rate and…

Q: Why does sole proprietor need a financial statement

A: A sole proprietorship usually referred to as a sole trader, is an unincorporated business with one…

Q: Alyssa has $800,000 saved for retirement in an account earning 2.2% interest, compounded quarterly.…

A: The Present Value of Ordinary Annuity refers to the concept which gives out the discounted or…

Q: Eastern Electric currently pays a dividend of about $1.64 per share and sells for $27 a share. If…

A: Payout ratio = 0.53 Growth rate = 0.07 or 7.0% Return on equity (ROE) = ?

Q: The Board of Directors of Fizzer Co. recently approved the allocation of up to Php60 million of…

A: IRR and NPV IRR and NPV are capital budgeting tools that help in deciding whether the capital…

Q: Consider a position consisting of a $100,000 investment in asset A and a $100,000 investment in…

A: Variance refers to the measurement of the dispersion of the returns of the portfolio. It is shown…

Q: An over-the-road tractor is purchased for $137,530 and placed in service in July 2017. The owner…

A: Accumulated depreciation An asset's total depreciation over its entire life cycle is called…

Q: I can't read the bottom part  " expenses on what ?  The hand writing is bad  please help

A: Capitalization rate is also known as the cap rate. This rate is used to evaluate a real estate…

Q: Company X is rated A and has 3 bonds issued 2 years ago. All the bonds were issued at par. Bond A is…

A: As per our guidelines, we are supposed to answer only 3 sub-parts (if there are multiple sub-parts…

Q: Ashburn Corporation issued 15-year bonds two years ago at a coupon rate of 8.8 percent. The bonds…

A: Given,  Par value is $1000 Coupon rate is 8.8%

Q: Aaron owns a two-stock portfolio that invests in Happy Dog Soap Company (HDS) and Black Sheep…

A: Market Condition Probability of Occurrence Happy Dog Soap Black Sheep Broadcasting Strong 0.2…

Q: What is the expected return on an equally weighted portfolio of these three stocks? (Hint: Equally…

A: Expected Return on Portfolio: It is the return expected by an investor on the portfolio containing…

Q: aumon bonowed $7819 00 compounded quarterly to help finance her education. She contracted to repay…

A: Loans are paid by the equal periodic payments and these periodic payments carry the payment for…

Q: A financial planner is examining the portfolios held by several of her clients. Which of the…

A: Standard deviation as a risk measure indicates how risky the portfolio is. A higher standard…

Q: eBook Assume that the risk-free rate is 2.5% and the required return on the market is 9%. What is…

A: Given: Risk free rate = 2.5% Market rate = 9% Beta = 2

Q: A manager of a commercial bank’s security portfolio is analyzing three bonds and is using duration…

A: Coupon payment refers to the amount that is being paid to an investor. It is to be computed by…

Q: A bond with six years left to maturity has a coupon rate of 9% and a par value of $1,000. How much…

A: Annual coupon payment = Coupon rate*Par value of bond  = 0.09*$1000 = $90 Number of years left to…

Q: Treasury bills are currently paying 5 percent and the inflation rate is 3.2 percent. a. What is the…

A: Information provided: Risk free rate “rf” =5% Inflation rate “i” = 3.2% Real rate of return is the…

Q: You own a portfolio that has $5,607 invested in Stock A and $2,853 invested in Stock B. If the…

A: Given,  Investment in A is $5607 Investment in B is $2853

Q: The annual growth rate of your investment can be measured by A. THE ANNUAL MEAN OF YOUR ANNUAL…

A: Several methods have been prescribed to measure the annual growth rate of an investment. We have to…

Q: You own a stock portfolio invested 32 percent in Stock Q, 22 percent in Stock R, 19 percent in Stock…

A: Beta is systematic risk factor.   We will calculate weighted average beta of the portfolio.

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.