Not use excel Q)You take out a home loan for $250,000, with an annual interest rate of 6% for 30 years. What is your monthly payment? You must use the formula to find the PVAF.
Q: 8) What lump sum should you deposit now at 1.6%, compounded continuously, to attain $750,000? 9) The…
A: Time value of money (TVM) refers to the method used to measure the amount of money at different…
Q: i. Determine the outstanding balance on your current loan for the remaining 240 payments. ii. If…
A: Mortgage amortization refers to a schedule which is prepared to shows the periodic loan payments,…
Q: The following are sentences relating to types of mergers and acquisitions. Which is/are true? [S1]…
A: Merger and Acquisition (M&A) is the process of bringing together of two or more companies, where…
Q: Phyllis invested 49000 dollars, a portion earning a simple interest rate of 4 percent per year and…
A: Given, Amount invested is $49000 Interest earned on both the investments is $2320
Q: A number of cases have considered the auditor’s liability in relation to persons other than the…
A: Generally, it is considered that the auditor's liability in relation to person other than the…
Q: As part of your analysis, you are required to investigate DEVCON Industries' cash flows and selected…
A: Ratio analysis is the method of checking the company's operational efficiency, liquidity, and…
Q: Flo East has $25,000 to invest in a financial institution for a period of three years. Institution A…
A: Explanation : When we are calculating the Compounded Interest calculation Monthly Compounding…
Q: A recent college graduate buys a new car by borrowing $16,000 at 7.2%, compounded monthly, for 5…
A: Any cashflow of equal instalments can be called as an annuity. A loan with equal repayments at equal…
Q: I. Find the value (using Binomial Tree) of a European style call option on an underlying stock which…
A: Options are derivatives. The value of option is derived from the value of an underlying asset.…
Q: Palmer products has outstanding bonds with an annual 8% coupon. The bonds have a par value of $1,000…
A: Solution: Yield to maturity (YTM) means the rate of return yield by the bond if it is held till…
Q: expansion purposes. You decided to issue semi- annual R1 000 bonds which pay a coupon of 10% for a…
A: Price of bond is present value of coupon payment and present value of par value of the bond at…
Q: Exclusions from gross income, except: O Interest on the price of land covered by the Presidential…
A: As per Bureau of Internal Revenue(BIR) of republic of Philippines, certain items have been specified…
Q: ABC Construction Corporation is planning to purchase STUVW Mining Corporation which is owned by S,…
A: When two or more companies join together or one company tends to acquire the other company, it is…
Q: Cost of Equity with and without Flotation Jarett & Sons’s common stock currently trades at $30.00 a…
A: Cost of Equity without floatation cost: Given, Next Year's Dividend = 1 Share Price = 30 Growth = 4%…
Q: Henrie's Drapery Service is investigating the purchase of a new machine for cleaning and blocking…
A: The net present value is the measure of profitability in which we add up the discounted cash flows.…
Q: Amy will need PHP 1.75M on July 4, 2015. To prepare for this, she places equal deposits at the end…
A: Future value required on July 4 2015 (FV) = PHP 1,750,000 Interest rate (r) = 8% Number of annual…
Q: Question The following economical indictors are referring to types of project (A and B). Answer the…
A: Investment Appraisal: It is the analysis to consider profitability , affordability and strategic…
Q: The following information relates to the acquisition of M plc by D plc: Recent dividend of M plc:…
A: When a company buys most of the shares of another company, it is called acquisition. Acquisition…
Q: +ve risks and -ve risks
A: A risk is an unexpected event that may impact and affect any area of your project says, people,…
Q: A company has a choice between two machines with identical production capacity but different costs.…
A: Incremental IRR is the incremental rate of return a project generates. It is used to compare two…
Q: site, find another.) Type in a nome price of $300,000. Leaving all other entries as they are, enter…
A: “Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…
Q: The company expected to pay dividend of $4 at end of the coming year (December 2022). The…
A:
Q: One of the mutually exclusive alternatives below must be selected Base your recommendation on…
A: Incremental Analysis: When two mutually exclusive projects have equal lives, incremental analysis…
Q: a. What is the company’s total book value of debt? (Enter your answer in dollars, not millions of…
A: Cost of debt (yield to maturity) refers to the total return generated by a bond until it matures.…
Q: The investor plans to invest 2000 UAH and chooses between two investment options: one-year bond that…
A: An investor chooses the investment which provides the highest return. Annual percentage yield is…
Q: At what rate converted annually will make PhP 3,287 accumulate to PhP 3,969 in 4 years?
A: Here, Present Value is Php 3,287 Future Value is Php 3,969 Time Period is 4 years
Q: Normal backwardation maintains that, for most commodities, there are natural hedgers who desire to…
A: Futures options are a type of asset that allows traders to buy and sell futures contracts at…
Q: Determine the weights of a portfolio with a standard deviation of 7% created by combining T-Bill and…
A: Expected Return on Portfolio: It is estimated by adding the individual security returns that are…
Q: Use the average daily balance method to compute the finance charge on the credit card account for…
A: Finance charge is an additional amount which is charged on an amount financed through external…
Q: be included in the capital budgeting decision because it is:
A: Given the cost is used for development and time and money is expended
Q: a) The Hanover based company, We Know Capital Limited (WKC), has been hired as consultants by a…
A: The Weighted Average Cost of Capital(WACC) refers to the financial ratio that calculates the overall…
Q: A company purchases a new asset for $400,000. It has a useful life of 8 years with a $80,000 salvage…
A: Explanation : Net Present value ( NPV) is that technique under capital budgeting which help for…
Q: You have $2,100 to invest for 2 years. Which account should you choose to have the largest account…
A: Future Value: It is the future worth of the current amount and is computed by compounding the…
Q: If the cost of capital is 18 percent and an investment costs $51,000, should you make this…
A: Cost of capital is 18% Initial cost is $51,000 Cash flow years 1-3 is $8,000 Cash flow Year 4-6 is…
Q: What does a high credit score mean? The person is considered a higher risk and less likely to pay…
A: Credit score is calculated to find the creditworthiness of a borrower. Higher the credit score,…
Q: Consider a borrowing of $400,000, with monthly payments to be made over 15 years with a 15% add-on…
A: Annual Percentage Rate = [( 1 + r/n)n ] -1 r = 15%/12 = 1.25% n = 12
Q: April May June Credit sales $ 312,000 $ 292,000 $ 352,000 Credit purchases 120,000…
A: Cash budget can be defined as the document showing evaluation of cash outflows and cash inflows…
Q: real life examples of systematic and unsystematic risk
A: Systematic risk - Systematic risk refers to that risk that is inherent to a market segment or the…
Q: An investment pays $2,000 every third year for 45 years (a total of 15 payments). Your opportunity…
A: Annuity amount per three years is $2,000 Total number of payments are 15 Interest rate compounded…
Q: A project requires an initial outlay at t = 0 of $25,000, its expected cash inflows are $5,000 per…
A: Discounted payback period is the period required to collect any project's initial outlay after…
Q: nator of the increment or of Diluted EPS is?
A: DEPS= Earnings availble for Equity shareholders + Savings in earnings or interest due to conversion…
Q: ABC Broadcasting Inc. acquires GO Telecommunications Inc. ABC runs TV channels while GO sells TV and…
A: When one company combines with another company in order to expand the business by either merging or…
Q: Harvey LLC’s capital structure consists of a 25-year bond issued 5 years ago with a coupon of 6% and…
A: WACC is the average cost of capital calculated by multiplying the weight with cost of funds. WACC…
Q: 4. Batman Products Inc. manufactures two items, masks and capes. Each item passes down two assembly…
A: In this finance question we have to find the product mix so that revenue will be maximized. Here the…
Q: You purchase a plot of land worth $54,000 to create a community garden. To do so, you secure a…
A: Future value of a present amount With present value (PV), discount rate (r) and period (n), the…
Q: Given cash of 3 million; accounts payable of 5 million, gross profit of 30 million, sales of 20…
A: Current ratio = Current assets/Current liabilities
Q: You are given the following information on two traded bonds making semi-annual coupon payments.…
A: YTM or Yield to maturity is the rate of return expected on a debt instrument considering the fact it…
Q: Which of the following statements is correct? The NPV method assumes that cash flows will be…
A: Solution:- Net Present Value (NPV) means the net of the present value of cash inflows and initial…
Q: Consider a coupon bond that has a $1,000 par value and a coupon rate of 10%. The bond is currently…
A: Solution:- Bond’s Yield to Maturity (YTM) means the rate of return the bond is providing to the…
Q: Suppose Federal National Mortgage Association sells mortgage-backed securities (MBS) backed by a…
A: Here,
Not use excel
Q)You take out a home loan for $250,000, with an annual interest rate of 6% for 30 years. What is your monthly payment? You must use the formula to find the PVAF.
Step by step
Solved in 2 steps
- Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $2,500 over the next 4 years when the interest rate is 15%, how much do you need to deposit in the account? B. If you place $6,200 in a savings account, how much will you have at the end of 7 years with a 12% interest rate? C. You invest $8,000 per year for 10 years at 12% interest, how much will you have at the end of 10 years? D. You win the lottery and can either receive $750,000 as a lump sum or $50,000 per year for 20 years. Assuming you can earn 8% interest, which do you recommend and why?Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.
- You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.Calculating interest earned and future value of savings account. If you put 6,000 in a savings account that pays interest at the rate of 3 percent, compounded annually, how much will you have in five years? (Hint: Use the future value formula.) How much interest will you earn during the five years? If you put 6,000 each year into a savings account that pays interest at the rate of 4 percent a year, how much would you have after five years?Del Hawley, owner of Hawleys Hardware, is negotiating with First City Bank for a 1-year loan of 50,000. First City has offered Hawley the alternatives listed here. Calculate the effective annual interest rate for each alternative. Which alternative has the lowest effective annual interest rate? a. A 12% annual rate on a simple interest loan, with no compensating balance required and interest due at the end of the year b. A 9% annual rate on a simple interest loan, with a 20% compensating balance required and interest due at the end of the year c. An 8.75% annual rate on a discounted loan, with a 15% compensating balance d. Interest figured as 8% of the 50,000 amount, payable at the end of the year, but with the loan amount repayable in monthly installments during the year
- You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuitythere is a house on sale for $800,000. You believe you can finance the home for $500,000 for 20 years at a 2% interest rate. What would the monthly principle and interest payment be for the acquird loan? Calculate using the PV funtion in excel.you want to buy a car for $8300 with $360 monthly payments for 4 years, what is the annual interest rate? please answer as an excel spread sheet, thank you!
- You lend a friend $10,000, which your friend will repay in 5 equal annual end-of-year payments of $3,000, with the first payment to be received 1 year from now. What rate of return does your loan receive? I need to be able to use excel and manually calculate as well.You need to have $30,000 for a down payment on a house in 6 years. If you can earn an annual interest rate of 3.3 percent, how much will you have to deposit today? USE EXCEL FORMULAS ONLY! NO ALGEBRAICALLY!You want to buy a car, and a local bank will lend you $33,000. The loan would be fully amortized over 6 years (72 months), and the nominal interest rate would be 13%, with interest paid monthly. What is the monthly loan payment? What is the loan’s EFF%?
