Ingrid wants to buy a $22,000 car in 6 years. How much money must she deposit at the end of each quarter in an account paying 5.8% compounded quarterly so that she will have enough to pay for her car? How much money must she deposit at the end of each quarter? (Round to the nearest cent as needed.)

Q: Complete the table below by finding the missing piece. Make sure to round everything to 2 decimal…

A: Time value of money concept says that every invested amount will have more future value due to…

Q: Income Statement for the year ended December 31, 2021 Net sales $65,117 Gain on disposal of fixed…

A: A statement of cash flows is prepared to know the cash inflows and cash outflows of the company…

Q: What is the maximum loss protective put? R

A: Put option: This option holder will have right to sell a stock, but it is not an obligation to sell…

Q: difference between  Money and capital markets.

A: Financial Market: An exchange where buyers and sellers meet to trade financial assets such bonds,…

Q: How much will I have saved after 6 years by contributing $1,200 at the end of each year if you…

A: Information Provided: Yearly contribution = $1200 Interest rate = 11% Years = 6

Q: The UIB company desires to construct a portfolio with 15% expected return. The portfolio is to…

A: The beta of a stock is the measure of the systematic risk associated with investing in the stock as…

Q: Small Ltd acquired a portfolio of corporate bonds on 1 July 2019. The bonds will generate…

A: The issuer of bonds is the borrower and the holder is the lender. The bondholder will also receive…

Q: All else being constant, a bond will sell at __________ when the coupon rate is __________ the yield…

A: Bonds refer to investment securities in which money is to be lent to the company by an investor…

Q: Q1- What is a probability impact matrix? Q2- how to make a risk assessment matrix? Q3- how to use…

A: Probability impact matrix is one of most common tools in risk assessment.  It is commonly used when…

Q: A. Giant Growth Co. is growing fast Dividends are expected to grow at a 20% growth rate for the next…

A: D0 1.40 Growth Rate for 3 years 20% Growth Rate in 4th year 30% Growth Rate After 4th year 7%…

Q: The Webster Corp. is planning construction of a new shipping depot for its single  manufacturing…

A: Net Present Value: The net present value is the excess of the present value of cash inflows over the…

Q: For each of the following, compute the present value: (Do not round intermediate calculations and…

A:

Q: Which of the following is a disadvantage of share ownership?   Select one: a. Shares are liquid…

A: The capital of a company is divided into a definite number of units and each unit is called a share.…

Q: 4. The amount of P50,000 was deposited in the bank earning an interest of 7.5% compounded…

A: The concept of TVM states that the money received now is worth more than the same amount of money…

Q: What is the approximate rate of delinquency, and is the rate of delinquency increasing or not?

A:

Q: We consider an auction on eBay. Suppose that the ticking price is $2 for all prices. The starting…

A: In bidding there is minimum or maximum upper limit allowed and in next bidding the prices changes by…

Q: A professional investor that you know makes the following observation about the assets on his…

A: Hindsight bias is when the investor overestimates his predictive abilities and try to reason saying…

Q: . Mala Prohibita Corporation has been earning 15% on equity and retaining 30% of its earnings after…

A: The cost of equity is required rate of return by the shareholders that depends on the dividend given…

Q: what is the value of $100

A: The future value of money is determined by compounding the original amount with interest. It…

Q: OPTIMAL CAPITAL STRUCTURE Terrell Trucking Company is in the process of setting its target capital…

A: Optimal capital structure is referred to as that perfect mix of debt and equity that maximizes a…

Q: What is the profitability index for an investment with the following cash flows given a 20 percent…

A: The Profitability Index(PI) is one of the capital budgeting techniques that take into consideration…

Q: Nielson Corporation has three employees. Each employee is paid overtime at time and one-half…

A: Payroll is the salary register maintained by the HR department of the company which includes the…

Q: A shareholder in a company:

A: Shareholders A person or entity who holds the shares or stocks of a company is known as shareholders…

Q: Find the compound amount for the following deposit.

A: Information Provided: Principal amount = $12,000 Interest rate = 5% compounded quarterly Years of…

Q: 8. If a lawyer tells you that his client is planning to construct a building on leased premises, the…

A: Lease is a form of contract or arrangement between two parties under which one party provides it's…

Q: Appreciations are better than Depreciations’. Discuss.

A: Appreciations-It refers to an  increase  in the value of  an asset over a period of time.…

Q: What is the forecasting risk when falling decisions based on the nvp rule?

A: NPV  The method in which the present value of both cashflow and inflows are calculated using a…

Q: Given the following information: Exchange rate - Canadian dollar 0.665 per DM (spot) 1 Canadian…

A: Arbitrage is a strategy that uses the difference in the price of the same commodity in different…

Q: State Federal Bank (SFB) offers two borrowing options to businesses: (1) a simple interest loan with…

A: The effective annual rate refers to the rate of return that is arisen from the investment after…

Q: 1. Practicing good financial management while still in college benefits you because: A. Budgets…

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

Q: A).How can we use capital markets to achieve both financial inclusion and financial literacy?…

A: Capital markets-It is a place where stocks, bonds, derivatives and commodities  are traded i.e., a…

Q: At October expiration the stock is $70 per share. Algebraically find their profit/loss, i.e. their…

A: Final answer for part a) They have made a profit of 0.01428 per share quoted price or $ 1 total…

Q: The constant growth model: i.      Assumes that dividend income will increase at a consistent rate…

A: The Constant Growth Model is a technique for valuing stocks. It is also known as the Gordon Growth…

Q: Miguel purchased a hot tub costing $5,070 by taking out an installment loan. He made a down payment…

A: APR (Annual Percentage Return) The rate of interest charged by a creditor on the amount lent or the…

Q: Question 6: Explain how to deal with the following in the cost accounts. Each answer should be in…

A:

Q: Everything else remaining the same, an increase in fixed costs:  I- increases the break-even point…

A: Financial breakeven point is that breakeven point, which is based out of net present value (NPV).…

Q: You are looking at two investment options, A and B. Investment A is a 13-year annuity that needs an…

A: Compounding: Compounding is the method through which interest is added to both the principle balance…

Q: Given the following information: Exchange rate - Canadian dollar 0.665 per DM (spot) Canadian dollar…

A: Steps) 1)Identification of currency  2)forward premium  % 3)apply Rule 4)Action Arbitrage profit…

Q: Elite Trailer Parks has an operating profit of $251,000. Interest expense for the year was $33,900;…

A: Given, Operating profit of $251,000  Interest expense is $33,900

Q: Dave took out a $5800 loan at 10% and eventually repaid $7540 (principal and interest). What was the…

A: As per the given information: Principal amount borrowed (P) = $5800Rate of interest (r)= 10%Amount…

Q: (1) The company's cost of equity, s expect annual growth rate of (12%, (2) If anticipated growth…

A: After deciding the amount of investment, the company's next step is the procurement of funds. This…

Q: [Determination of Selling Price] Question 18: The following data are obtained from the records of a…

A: I solved four parts in step 2 As per bartleby guidelines we are allowed 3 parts only I answered…

Q: The following certificate of deposit (CD) was released from a particular bank. Find the compound…

A: Future value of amount being accumulated over the period of time and amount of investment done…

Q: . [Put-Call Parity Condition] At date t, there is a European call option on the dollar with a strike…

A: Put call parity With call price (c), put price (p), stock price (s), exercise price (k), risk free…

Q: Hayden Inc. has a number of copiers that were bought four years ago for $25,000. Currently…

A: After tax salvage value After tax salvage value is calculated as shown below.         After tax…

Q: Explain to your Aunt Betty the relationship between call value and time-to-expiration of the option.…

A: Your answer:   QUESTION 1. The call value of an option is affected both directly and inversely by…

Q: Problem 4. Refer to problem no. 3. Using NPV and IRR method, give your recommendation if the company…

A: This answer is for only Problem no. 4 Here total cost of new equipment would be =417,860+40000…

Q: A small business borrows $53,000 for expansion at 12% compounded monthly. The loan is due in 9…

A: Borrowed amount is $53,000 Interest rate compounded monthly is 12% Time period is loan is 9 years…

Q: Consider an investment scenario where you will be choosing a portfolio of three stocks from a…

A: Given: Investment portfolio will be considered financially diverse if it has at least two different…

Q: Assume that in January 2017, the average house price in a particular area was $294,500. In January…

A: Growth rate The rate of change in value from one period to another is called the growth rate. Growth…

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.