Miller invested P15,250 for 10 years and received P9,150 in simple interest. What was the rate of that investment? Nick borrowed P6000 at 9% simple interest fro 1 ½ years to repair his rice threshing-machine. Find the simple interest, future value, and equal monthly installments? Benjamin deposited P600 in a saving account that pays 4% simple interest. How long did it take for his deposit to earn an interest of P72. What amount was invested for 5 years at 2 ¼ % if it earned interest of P2,500? At what interest rate will P15,000 earn an interest of P2,500 at 1.8%

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A: Income taxes is the amount of taxes which needs to be paid by the individual or business to the gove...

Q: If beta of Stock A with market is 0.72 and and the market variance is 225 , the covariance between A...

A: Beta of stock A = 0.72 Market Variance = 225  Covariance between A and B = 202.5   

Q: A decrease in the will cause an increase in common stock value. O A. growth rate O B. required rate ...

A: Value of the common stock depends upon following parameters: a) Last dividend b) Growth rate c) Requ...

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A: Given, Loan taken 10,000,000 with 20% interest. After 5 years, refinanced with 20 year loan at 24% p...

Q: An analyst has gathered the following information for a Company: Expected earnings per share $9.31 E...

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Q: The cash price of a motorcycle is Php325,000. A fixed amount is to be paid at every end of the month...

A: Cost (PV) =Php 325000 Interest rate = 9% Monthly interest rate (r) = 9%/12 = 0.75% Period = 1.5 Year...

Q: Assume that the real interest rate is 2% per year, the default risk premium is 3%, the liquidity pre...

A: Given: Real interest rate = 2% Default risk premium = 3% Liquidity risk premium = 1%

Q: How much is the total assets for 2021?

A: Total Assets = Net Book value of Non current assets or Plant and equipments + Total current assets

Q: What is the yield on this 5-year corporate bond? Round your answer to two decimal places.

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Q: Why is trading volume an important consideration when undertaking technical analysis?

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Q: Corporations often offer ________ to investors as some tangible evidence that the corporation is doi...

A: The firms get capital form different sources such as equity, debt and loans from any financial insti...

Q: A $40,000 loan at 4% dated June 10 is due to be paid on October 11. The amount of interest is (assum...

A: Loan amount (P) = $40000 Interest rate (r) = 4% Period from June 10 to Oct 11 (d) = 123 Days

Q: The investor has set aside an amount of Rs 5,00,00 to be equally divided into aggressive and defensi...

A: Trigger point is 20%  

Q: You bought a car and borrowed $25,067 for 48 months. If the rate is 3.56%, what is your monthly paym...

A: Loan amount (L) = $25067 n = 48 months r = 3.56% per annum = 0.29667% per month X = Monthly payment

Q: You own a stock portfolio invested 33 percent in Stock Q, 20 percent in Stock R, 37 percent in Stock...

A: Stock Weight Beta Q 33% 1.02 R 20% 1.08 S 37% 1.48 T 10% 1.93

Q: EBIT is $12,000 and interest expense is $3,000. If the tax rate is 20%, what is the net income? O $7...

A: EBIT = $12000 Interest expenses = $3000 Tax rate = 20%

Q: How is investment banking different from retail and corporate banking? Explain in a flowchart.

A: Retail Banking is the type of Banking which provides banking services or financial services to the c...

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A: To Find: NPV

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Q: Which of the following statements is false? A) In bankruptcy, management is given the opportunity t...

A:

Q: You will invest $200 per year. If the rate is 8.83%, how much will you have in 13 years?

A: Amount invested per year is $200 Rate of interest is 8.83% Time period is 13 years To Find: Future ...

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Q: You can earn $42 in interest on a $1,000 deposit for eight months. If the EAR is the same regardless...

A:

Q: Krei is required to pay P57,000 in 15days or P60,000 in 60days. Find the annual rate of the interest

A: We will use the formula of simple interest to solve the question. The formula is: Total amount=P + (...

Q: Pete's Wheels n' Spokes has a rate of markup on cost of 20% on a model of bikes. This represents a m...

A: Markup on cost = 20% Markup amount = $56

Q: a) What is the general characteristics of Risk Financing – Risk Retention Methods

A: Hi, Thanks for the Question, Since you asked multiple questions, we will answer first question for y...

Q: Tresnan Brothers is expected to pay a $2.20 per share dividend at the end of the year (i.e., D1 = $2...

A:

Q: November 2009, Perrigo Co. (PRGO) had a share price of $39.20.  They had 91.33 million shares outsta...

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Q: The Uptowner has 11,000 shares of stock outstanding with a par value of $1 per share and a market va...

A: The net income earned by the company's shareholders on its invested capital is known as a dividend. ...

Q: QUESTION 4 Jeremiah invested RM100 every month into his Paradise Mutual Fund account for 8 years at ...

A: Note : Since here question 5 is specifically asked to answer,so we are solving the same for you. Pre...

Q: The future value of an investment is Php5,500,000 while its present value is Php3,500,000. It has a ...

A: Let the quarterly rate = r n = 13 years = 52 quarters Future value (F) = Php 5500000 Present value (...

Q: An annuity-immediate has 3 annual payments of $200, followed by a perpetuity of $300 starting in the...

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Q: An investment will have a future value equal to Php180,250 after 6 years. It has a nominal rate of 1...

A: Future value of the investment (F) = Php 180250 r = 10.5% per annum = 2.625% per quarter n = 6 years...

Q: Elgin Battery Manufacturers had sales of $1,000,000 in 2015 and their cost of goods sold is $700,000...

A: Income taxes is the amount of taxes and obligations which needs to be paid by the individual or busi...

Q: f market is efficient, in managing an equity portfolio, you will adopt a. Indexing strategy b. Stock...

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Q: Your insurance agent is trying to sell you an annuity that costs $50,000 today. By buying this annui...

A: In finance annuity refers to that series of payments that are made/received at regular intervals. He...

Q: Why do floating charge holders frequently include a negative pledge clause in the charge.

A: Negative pledge ensures that, in case of insolvency of a firm, other creditors wont be able to obtai...

Q: Candy Company had sales of $320,000 and cost of goods sold of $112,000. What is the gross profit mar...

A: Sales = $320,000 COGS = $112,000 Gross profit = Sales-COGS                     = 320,000-112000     ...

Q: # 7 A debt of P10,000 with interest at 6 % payable quarterly will be discharged, interest included, ...

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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.