If Trey opens an account with $7,500 and plans on depositing $1,500 every year-end, how much will he have accumulated at the end of 7 years if the rate the bank gives is 5% APR with quarterly compounding?

Q: Suppose you want to buy a $150,000 home. You found a bank that offers a 30-year loan at 4.1% APR.…

A: Given: Loan Amount = $150,000 No. of Year = 30 years Annual Rate = 4.1% We will calculate the…

Q: he results of a study are summarised below: Alternative IRR Incremental IRR Apples Bananas Carrots…

A: Incremental IRR is the one of the method of finding best project among all and used for comparison…

Q: Majestic Aircraft Corporation is considering purchasing composite wing fixtures for the assembly of…

A: Net annual cash flow can be defined as the per year cash inflows as deducted by the per year cash…

Q: Greg owes two debt payments – a payment of $5316 that was due in 13 months ago and a payment of…

A: The date at which values of all payments are calculated by compounding past and discounting future…

Q: What is the current value of a security that pays $165,500 per year for 10 years if similar…

A: FORMULA Current value = P*[1-(1+i)-n]/i Where P - Annual payment amount i.e. $165,500 i - Interest…

Q: 5. Critical analysis Q7 Megan is considering getting a part-time Job that pays a monthly income of…

A: Marginal tax rate = ( Total money lost / Total income earned) * 100

Q: 3.3 Kapoor Bhd issued 4 percent debentures with a nominal value of RM40,000,000 on 1 January x1. The…

A: Given, Nominal value of debenture= RM40,000,000 Discount = 2.5% Issue cost incurred = RM1,000,000.…

Q: A man borrowed an amount of P150,600 to bank that offers an interest rate of 5.36% compounded…

A: Loan is a borrowed amount of money for a fixed time period, which is expected to be repaid with…

Q: HBM, Inc has the following capital structure: Assets $ 600,000   Debt $ 150,000         Preferred…

A: Weighted-average cost of capital is the average cost of capital can be calculated by multiplying the…

Q: 4. Suppose the current zero-coupon yield curve for risk-free bonds is as follows: Maturity (years)…

A: Zero-coupon bond can be defined as the type of bond which pays lumpsum amount at the end of the…

Q: 1.886 1.859 1.833 | 1.808 | 1.783 | 1.759| 1.736 1.713 1.690 1.668 | 1.647 1.626 1.6051.585 1.566 |…

A: Present Value = Annual Installment received * PVIF( r, n) = 53,000 * PVAF( 10%, 20) ( from annuity…

Q: JHOPE "I am your hope" Company has 10% net profit margin on sales in previous years and exp same…

A: Additional fund needed can be calculated by using this equation Additional funds needed(ANF)…

Q: Which statement is true when considering a loan?   F. You should always take the least interest rate…

A: While considering a loan, both interest rate and term of the loan are important. Both of these…

Q: Compute the interest of the following: 2. P25,000 at 6% simple interest for 1 year.

A: Compounding:  A compounding is the interest charged on interest. When any investment is made for…

Q: 2-year coupon bond par = 100, coupon rate = 5% %3D (annual compounding) current market price p0 =…

A: Time Period 2 Par Value 100 Coupon Rate 5% Current Price(P0) 98 Current Price(P1) 99.2

Q: A one-year annuity that pays $100 semi-annually will starts its payment in 6 months from now. APR is…

A: Present Value of  Ordinary Annuity refers to the concept which dictates the discounted value of a…

Q: Barry Inc. is considering a project that has the following cash flow and WACC data. What is the…

A: Future value factor = 0.0975 (9.75%) Initial cash outflow = $53,600 n = Period i.e. 5 Years

Q: (i) A Zambian company has a bond outstanding that sells for 87 percent of its K100,000 par value.…

A: Yield to maturity can be defined as the annual rate of return that a bond is expected to earn until…

Q: An engineer in an industry has received a year- end bonus of $10,000 which will be invested…

A: FV = PV * (1 + r)n FV = Future value PV = present value = $10,000 r = rate of interest = 8% n =…

Q: You have just started up a new company in NS that produces software for the waste management…

A: Depreciation Capital cost allowance (CCA) CCA has a set of rates based on which the annual…

Q: ABC Company had sold 500 pieces of handbags at 150 pesos each in just one month period. The company…

A: Sales in the first month = no. of bags sold * price per bag = 500 bags * 150 pesos per bag = 75,000…

Q: Blue Angel Investors has a success ratio of 10% with its venture funding. Blue Angel requires a rate…

A: A loan is a type of debt that is taken on by a person or a business. The borrower receives a sum of…

Q: A firm’s current balance sheet is as follows: Assets $ 110   Debt $ 44         Equity $ 66 What is…

A: Note: since fill the blanks options were not provided, the most appropriate ones are used above.…

Q: A debt of P10,000 with yearly interest of 24% is to be amortized over the next 6 years with the…

A: Debt paid in equal annual payment from year 1 to year 6. Amortization table used to display the…

Q: Assume a $175,000 mortgage loan and 10-year term. The lender is charging an annual interest rate of…

A: Given, Mortgage amount is $175000 Annual interest rate is 6%

Q: Your firm is considering a project with a five-year life and an initial cost of $260,000. The…

A: NPV It is a capital budgeting tool to decide on whether the capital project should be considered or…

Q: Discuss the Beta of  as measure of systematic risk.

A: In finance systematic risk refers to that risk which is inherent to the entire market. As the risk…

Q: Another type of personal loan is a credit card. A financial institution allows you to charge a…

A: Hi, since the question needs to be olved using credit card payoff calculator. An online calculator…

Q: Jane requested a loan from a bank amounting to P405,630 to contin her small business. But she only…

A: Interest is an additional amount charged on the amount. It can be income and expense. For the lender…

Q: You were offered 2 investment opportunities, Stock M and Stock D. Your decision as to which…

A: Decision would be taken based on calculating expected rate of return using CAPM formula.   Required…

Q: 6a. A large profitable corporation is considering a capital investment of $50,000. The equipment has…

A: For calculation of before tax cash flows, depreciation shall not be deducted because it is a non…

Q: uired: Determine the projected sales for June and July 2019 for the two pro sand pesos.

A: The amount of revenue a firm intends to make at some time in the future is known to as a sales…

Q: fund is to be set up for an annual scholarship of $5000. If the first payment is due in three years…

A: Solved using Financial Calculator  FV = 5000 N = 3 years * 4 = 12 I/Y = 6.2/4 = 1.55 CPT PV = -…

Q: QUESTION 8 Consider the following Taylor rule i=0.02+0.75y+0.25(x-2% ) Notice that the central bank…

A: The production approach measures bank output by treating banks as businesses that produce various…

Q: Product A Product B Initial cost $750,000 $650,000 Expected life 5 years 5 years Scrap value…

A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: A bond pays $10,000 per year for the next 10 years. The bond costs $90,000 now. Inflation is…

A: Given, Bond pays 10,000 / year for 10 years. Cost of bond = $90,000 Inflation = 6% for 10 years

Q: Which among these options for Mr. D is the best for him to pay the least? A. higher rate B. pay in…

A: We know that Higher interest will lead to higher payment and lower interest will lead to lower…

Q: Dallas Pierce's most recent credit card statement follows. His finance charge is 18% APR. Calculate…

A: (Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Prob. Return (%) B 0.1 40 G 0.2 30 O 0.3 15 L 0.2 2 S 0.2 -12 where B-Bloom,G-Good,…

A: Risk is a factor which arises due to the possibility of differences between the actual outcome and…

Q: How much money would you have at the end of 15 years if you initially invested $7,500 at a nominal…

A: Concept. A = P (1 + r)n  Where A = amount including compound interest. P = principal amount R = rate…

Q: A man intends to save up money for his retirement so that he can withdraw equal sums of P18,000 for…

A: Present Value of  Ordinary Annuity refers to the concept which dictates the discounted value of a…

Q: Companies invest in expansion projects with the expectation of increasing the earnings of its…

A: Net Present Value (NPV) of a project is the sum of the present value of the cash outflow or inflow.…

Q: What house value can Betty afford? Betty's annual income is $90,000 and she has monthly credit…

A: Here, To Find: Value of the house =?

Q: 6c A large profitable corporation is considering a capital investment of $50.000. The equipment has…

A: Tax for year 2 will be calculated on net income. Tax for year 2 =(Annual gross…

Q: A hydraulic lift is purchased for a warehouse for $60,000. This lift is expected to generate $7000…

A: Rate of Return on Investment = Net income/Total Investment Depreciation Expense = Cost of the…

Q: 11. Heinz Inc expects to generate earnings over the next five years of Php 50,000.00; Php 60,000.00;…

A: Value of the firm can be calculated by using capitalisation earning method. For this we need to use…

Q: company's Degree of Financial Leverage (DFL) is primarily influenced by decisions about:…

A: Financial leverage indicates how business is depending on its debt.

Q: Paul is risk averse and is offered the choice between contract A that pays $400 or $600, each with…

A: The risk-averse investor prioritizes capital preservation over the possibility of a…

Q: A loan in the amount of $280,000, is contracted over a period of 25 years to finance the purchase of…

A: Here,

Q: e) P130,000,00 5. QC Corp. declared its dividend consistent with its dividend yield of 0.10. This…

A: Dividend Yield refers to the ratio which shows the return potential or investor in form of cash…