Mbalenhle agreed to settle a debt by making 12 quarterly payments of R300 each. If she failed to make the first 3 payments, what payment when the next is due will cancel her debt, if money is worth 8% p.a. compounded quarterly?

Mbalenhle agreed to settle a debt by making 12 quarterly payments of R300 each. If she failed to make the first 3 payments, what payment when the next is due will cancel her debt, if money is worth 8% p.a. compounded quarterly?

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter27: Time Value Of Money (compound)

Section: Chapter Questions

Problem 5E

See similar textbooks

Related questions

Q: Consider the following case of Happy Turtle Transportation Company: Suppose Happy Turtle…

A: We can determine the firm's net income using the formula below:We can determine ROE and EPS using…

Q: Consider two possible investments whose payoffs are completely independent of one another. Both…

A: from the given information in questionwe have to consider two possible investments whose pay offs…

Q: The Wildcat Oil Company is trying to decide whether to lease or buy a new computer- assisted…

A: A lease payment is a payment made under the terms of a written lease agreement between the owner of…

Q: The Adderley Corporation is considering investing in a new machine that has an estimated life of…

A: Net Working Capital (NWC) is a financial metric that represents the difference between a company's…

Q: Using the simple interest method, find the monthly payments on a $2,000 installment loan if the…

A: Simple interest refers to the method of interest calculation where the principal amount remains the…

Q: An all equity firm has a return on assets (ROA) of 14.20 percent. The firm makes the decision to…

A: WACC is the weighted average cost of capital and is the weighted cost of equity and weighted cost of…

Q: Which of the two bond has lower price per bond. Bond X that pay 6% annual coup-on (semi-annually)…

A: Coupon bonds and zero-coupon bonds are different in the aspect of providing interest for the…

Q: 15. Lohn Corporation is expected to pay the following dividends over the next four years: $15, $18,…

A: The share price is the current price of the company's shares at which the shares are sold on the…

Q: (including preferred stock) of $45 million, and 1,000,000 shares of common stock outstanding. Next…

A: Share price:The term "share price" refers to the value at which a single share of a company's stock…

Q: A 5-year 6% coupon semiannual bond was issued last year, Today, the yield rises for this type of bo-…

A: In bonds there are annual periodic interest payments and par value is paid on maturity and price of…

Q: What monthly interest rate did Mark earn? (

A: An interest rate is the price of borrowing money or the proportion of return on investment. It…

Q: Old Main is a historic campus landmark that needs maintenance and repairs to its bell tower every 15…

A: Present value is money needed today based on future money required based on time value of money and…

Q: Esquire Company needs to acquire a molding machine to be used in its manufacturing process. Two…

A: Present Value (PV) is used to determine the current worth of a sum of money or a series of future…

Q: Information on four investment proposals is given below: Investment required Present value of cash…

A: The profitability index (PI), also known as the profit investment ratio (PIR) or value investment…

Q: Your stock portfolio earned 3%, -12%, and 3% for the last three years. What is your annualized…

A: The annualized return for the last three years on arithmetic average is

Q: uppose you take a short position in 15-Russian ruble contracts at a price of $0.010125/RUB on the…

A: In short sell one does not hold position but promises to purchase later at down positions in the…

Q: Suppose that XTel currently is selling at $60 per share. You buy 1,000 shares using $48,000 of your…

A: Rate of return on investment (ROI) is a financial metric used to evaluate the profitability of an…

Q: lculate the compounding factor that would be used to determine the future value of an annuity for an…

A: In calculation of the future value of annuity we need future value annuity factors and these are…

Q: Portfolio invested in the stock Portfolio invested in the bond Expected return Standard deviation %…

A: Optimal Risky portfolio represents the portfolio on the efficient frontier that offers the highest…

Q: Consider a portfolio manager with a $20,500,000 equity portfolio under management. The manager…

A: Variables in the question:Portfolio value = $20,500,000Portfolio beta = 1.25Future price =…

Q: AAPL is currently trading for $95 per share. The stock pays no dividends. A one-year European put…

A: A call option is a financial contract that gives the holder the right, but not the obligation, to…

Q: On 5/15/2008, the thirty-year T-bond with a coupon of 5.00%, and maturing on 5/15/2038 was quoted at…

A: "forward contract" means a financial derivative contract or an agreement between two parties or…

Q: An investor experiences the following 5 annual returns. Calculate the sample variance of these…

A: 5 Annual Returns are providedWe are required to Calculate Sample Variancen= frequency = 5

Q: Suppose that Ally Financial Inc. issued a bond with 10 years until maturity, a face value of $1,000,…

A: Bond price can be determined by adding the present value of the future cash flows and the present…

Q: You find the following corporate bond quotes. To calculate the number of years until maturity,…

A: Coupon are the amount of annual interest amount paid on the face value of bond based on specified…

Q: Your firm has total sales of $1,420, Costs are $780 and depreciation is $120. The tax rate is 22…

A: Operating Cash Flow:Operating cash flow refers to the amount of cash generated by a company's core…

Q: Describe the order of claimants and how it impacts the returns that various providers of capital…

A: Claimants:The claimants are referred to as the type of creditors that entitled to the payment due in…

Q: 14 BALANCE SHEET 15 ASSETS 16 Cash and marketable securities 17 Accounts receivable 18 Inventory 19…

A: Current ratio is a financial ratio that measures a company's ability to pay off its short-term…

Q: For the following stock investment, find (a) the total purchase price, (b) the total dividend…

A: The investment in shares are quite risky but returns are also maximum but some time the there is…

Q: T = (year)

A: The effective annual interest rate is a crucial concept in finance that is used to describe the true…

Q: Eight years ago, Ohio Valley Trucking purchased a large-capacity dump truck for $115,000 to provide…

A: Variables in the question:Cost=$115,000Sale price=$45000O& M cost per year=$10500Overhaul cost…

Q: The Moore Enterprise has gross profit of $1,140,000 with amortization expense of $490,000. The…

A: Cash flow is the money available from core business activities after making payment for expenses…

Q: Jensen Inc. has total equity of $72 billion and 720 million shares outstanding. Its ROE is 14.43%.…

A: Equity = e = $72 billionNumber of Shares = n = 720 millionReturn on equity = ROE = 14.43%Dividend…

Q: Suppose a firm has a EBIT of $450, Depreciation of $65, taxes of $50, change in NWC of $35, and net…

A: The value of the firm is the present value of all the future cash flows expected from the firm…

Q: Duration is defined as a weighted average of the maturities of the cash payments. Suppose the weight…

Q: We have to calculate her monthly payment.

A: The process of determining a loan's equivalent monthly installment (EMI) based on the loan amount,…

Q: Cameron's Putts Inc. has 6.2 percent coupon bonds outstanding with a current market price of $704.…

A: Bonds are debt instruments issued by corporations, municipalities, and governments to raise capital.…

Q: One year ago, the Jenkins Family Fun Center deposited $3,400 into an investment account for the…

A: A = P (1+i)twhere,P = Principal investedi = Interest Ratet = TimeFor, investment of $3,400 made an…

Q: Flex Company just paid total dividends of $825,000 and reported additions to retained earnings of…

A: Stock Price = P/E Ratio x EPS

Q: Given the following information regarding Builtrite's capital structure, calculate its weighted…

A: WACC stands for Weighted Average Cost of Capital. It is a financial metric that represents the…

Q: On January 4, 2019, the DJIA opened at 22,686.22. The divisor at that time was .1474807199 . What…

A: A stock index refers to a group of stocks that are used collectively to measure the performance of a…

Q: Required information [The following information applies to the questions displayed below.] A pension…

A: Required:Portfolio Invested in Stock =?Portfolio invested in Bond Fund =?Expected Return of Optimal…

Q: Determine the future equivalent value of the following cash flow pattern when interest is 6% per…

A: Present Value is a capital budgeting techniques. whihc help in knowing the present value of future…

Q: January 1, 2020, Master Inc. leased new equipment to Kerr Company noncancelable lease, requiring…

A: Implicit rate is at which the present value of cash flow from the assets will make equal to the…

Q: The Jensen Company has compiled the following information about a project they are considering.…

A: Initial Cost = i = $500,000Cash Flow for year 1 = cf1 = $50,000Cash Flow for year 2 = cf2 =…

Q: In December 2020, a pound of lemons cost $1.896, while a pound of bananas cost $0.572. Three years…

A: Given information:Cost of a pound of lemons in Dec 2020 is $1.896Cost of a pound of Banana in Dec…

Q: Use this a pivot table to calcuate the number of total sales revenue, total profit and average…

A: For the given Pivot table,To calculate the number of total sales revenue, total profit and average…

Q: 3M stock started the year at $146, and by the end of the year had increased to $174. 3M also paid $7…

A: The total gain and loss from selling a stock with respect to the price of buying a stock is known as…

Q: . What to the nearest cent is the value of the long forward contract?

A: A financial agreement between two parties to purchase or sell an asset at a defined future date for…

Q: question 2,3,4

A: To determine the volume traded we need to look at the sales in the given table. To determine the…

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

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: Computation

VIEW

Step 2: Computation

VIEW

Solution

VIEW

Step by step

Solved in 3 steps with 1 images

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

Sally is in the business of purchasing accounts receivable last year Sally purchased an account receivable with a face value of 83,000 for 60,000. During the current year, Sally settled the account, receiving 65,000. Determine the maximum amount of the bad debt deduction for Sally for the current year.
Mrs Cruz has a debt of P90,000.00 which she will settle by making monthly payments of P4,000 each. If money is worth 19% compounded quarterly, and payments are made at the end of each month, how many regular payments of P4,000 are needed? how much is the smaller payment? What is the oustanding balance after the 15th payment?
Margo borrows $1400, agreeing to pay it back with 7% annual interest after 217 days. How much interest will she pay?
Caren Rodriguez borrows P1,500 with simple interest at 3% per month. Whatpayment at the end of 10 months could settle her obligations?
Mariel owes P30,000 in 5 months with interest at 7% and another P14000 is due in 11 months with interest at 9%. These two debts are to be replaced with a single payment due in 9 months. Determine the value of the single payment if money is worth 6.5%, using the end of 9 months as the focaldate.
Margarita borrows R10,000 from her uncle and agrees to repay it in monthly instalments of R200. Her uncle charges 0,5% interest per month on the balance. How long will it take her to repay all the money?
Karl borrows P200,000 and agrees to pay the principal and interest by making equal payments at the end of every 6 months for 4 years. Find his semi annual payments if the lender charges 12% compounded semi annually.
Diane borrowed $8000 at a rate of 7.5%, compounded monthly. Assuming she makes no payments, how much will she owe after 9 years? Do not round any intermediate computations, and round your answer to the nearest cent.
Mrs Cruz has a debt of P90,000.00 which she will settle by making monthly payments of P4,000 each. If money is worth 19% compounded quarterly, and payments are made at the end of each month, a)many regular payments of P4,000 are needed? b)how much is the smaller payment? in 2 decimal values. c)What is the oustanding balance after the 15th payment? 2 decimal values
Javion Minerva owes P25,000 due in 1 year and P75,000 due in 4 years. He agrees to pay P50,000 today and the balance in 2 years. how much must he pay at the end of two years if the money is worth 5% compounded semi-annually?
Lamis borrowed OMR 10,000 from Bank Muscat with an interest rate of 5% for 3 years. The amount she has to pay after 3 years is
Coco borrowed ₱100,000 and wishes to repay Kobe at the end of each month with payments of ₱3,000 for as long as necessary. Coco is charged by Kobe 9% interest compounded monthly. How many regular level payments does Coco have to pay?