Post an interest rate calculation question for your peers that incorporates any of the following elements: Nominal interest rate calculations Effective interest rate calculations Simple interest rate calculations Compounding interest rate calculations

Q: Tokyo Corporation must pay its supplier P500,000. Tokyo Corp's bank has advertised a 270-day loan…

A: Compensating Balance: Compensating balance means the amount that a borrower deposits in the…

Q: Vigo Vacations has $300 million in total assets, $7 million in notes payable, and $35 million in…

A: Debt ratio: The debt ratio measures the proportion of the asset paid for with debt. It is calculated…

Q: P45,000 is deposited in a savings account that pays 5% interest compounded semi-annually. Equal…

A: Here, Deposited Amount is P45,000 Interest Rate is 5% Compounding Period is Semi Annual i.e. 2

Q: Angela Montery has a five-year car loan for a Jeep Wrangler at an annual interest rate of 5.7% and a…

A: Data given: N=5 year Interest rate = 5.7% PMT= $595.50 After 3 years, Angela decides to purchase a…

Q: While Mary Corens was a student at the University of Tennessee, she borrowed $9,000 in student loans…

A: Present value of annuity is the current value of the future payments that are calculated using the…

Q: You are deciding between two mutually exclusive investment opportunities. Both require the same…

A: The internal rate of return is a capital budgeting technique that helps in calculating a discount…

Q: 5. What principal (present value) invested for 3 years at 10% compoun total future value of P4,000?…

A: The present value is the equivalent value today of the future cash flow considering the interest and…

Q: Tarmac Co made sales of $1,930,200 during the year ended 31st March X3.  Inventory decreased by…

A: Answer -  Step 1 - Calculation of Cost of Goods Sold- = Sales / Markup percentage  = $1930,000 /…

Q: Describe what would happen to a company if it ran out of cash. Explain the importance of good…

A: Funds are the basic necessity to run the business. Funds are like blood for the business. No…

Q: give your own perspective on why financial literacy is important

A: The knowledge and use of diverse financial abilities is referred to as financial literacy.…

Q: Are the following statements true or false? Justify your answer. Mergers inspired by vertical…

A: Merger is referred as an agreement, which used to unite for two existing corporations into new…

Q: 5,027 is invested with 7% simple interest, find the exact interest using exact time and approximate…

A: Simple interest is simple interest without any need of compounding and in exact interest we need to…

Q: oration receives checks that amount to P400,000 each day, whereas the amount of checks the company…

A: Net float is  difference of amount to be received and amount to be paid considering check clearing…

Q: Q38   A company's master budget for October is to manufacture and sell 31,300 units, for a total…

A: A budget is a projection of revenue and spending for a given time period. Budgets are used by…

Q: Signature Corporation, which is currently operating at full capacity, has sales of $75,0 $4,500,…

A: External financing are needed to fund the increase in sales so company has to plan the for that…

Q: To pay its supplier, Tokyo Corporation requires P300,000. The bank of Tokyo Corporation offers a…

A: Compensating balance Sometimes it is required at bank to keep a deposit of funds to qualify for the…

Q: s. How much is his monthly payment? How much total interest will he pay?

A: Loan payments: These are payments made by the borrower to the lender for amortizing the loan…

Q: Suppose that you are in the fall of your senior year and are faced with the choice of either getting…

A: Present value of growing annuity Annuity is a series of equal payment at equal interval over a…

Q: A. Complete the information below using Ordinary Simple Annuity. 1. R=P900 An = Sn = P11,504.14 t=…

A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…

Q: P LIC Use PMT= to determine the regular payment amount, rounded to the nearest dollar. The price of…

A: A mortgage is a type of loan that is linked to real estate. It is a form of a secured loan on the…

Q: Please answer immediately.  A certain equipment has a first cost of P 12,000 and a salvage value of…

A: Sinking fund method is a method to provide a depreciation by considering a discount rate. This…

Q: As a finance manager in a company, you considering purchasing a call option on the stock of Crude…

A: An option is a financial instrument whose value is calculated on the basis of underlying securities.…

Q: Stop and Go has a 4.5 percent profit margin and a 15 percent dividend payout ratio. The total asset…

A: Sustainable growth rate:  The rate of growth that a firm may anticipate seeing, in the long run, is…

Q: Innovation Company is thinking about marketing a new software product. Upfront costs to market and…

A: Here, Initial Investment is $4.98 million Annual Profit for 10 years is $1.15 million Annual Cost…

Q: Which amount is worth more at 14 percent, compounded annusly $1,000 in hand today or $2.000 due in 6…

A: Future Value: The future value is the amount that will be received at the end of a certain period.…

Q: Aaron Heath is seeking part-time employment while he attends school. He is considering purchasing…

A: The net present value method is used to find the profitability of a project by discounting future…

Q: ► 1. Consider projects A and B and a cost of capital of 10%. Use the profitability index to select…

A: The profitability index  is an index that depicts the relationship between a proposed project's…

Q: Your company currently has an equity beta of 1.2, risk-free debt, and a constant D/E ratio of 0.20.…

A: Here, Equity Beta is 1.2 Debt is Risk Free D/E Ratio is 0.20 FCF in one year time is $20 million…

Q: which is also its expected return on new investment; this is expected to continue forever. What do…

A: The Current market price per share is calculated using Gorden's Model. The Current Stock price is…

Q: A 5-year project will require an investment of $100 million. This comprises of plant and machinery…

A: (Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…

Q: Suppose that the risk-free rate is 3% and the market risk premium is 8%. According to the CAPM,what…

A: To calculate the CAPM we need to identify the market risk premium,risk-free rate and Beta.   Given…

Q: What agencies regulate securities markets? How are start-up firms usually financed? Differentiate…

A: A business that is considering to issue equity by selling its shares to public will have to follow…

Q: Linkcomn expects an Eamnings after Taxes of 7500005 every year. The firm currently has 100% Equity…

A: Earnings after tax(EAT) = 7500005 Cost if Equity (ke) = 12% Value of a firm is the present value of…

Q: Poultry Pete’s regularly purchases laying hens. The terms of payment are 3/15 net 60. Pete is not…

A: Cost of not taking discount=Discount rate100%-Discount rate×Number of days in a yearLast day of…

Q: Consider a firm that has debt D and keeps it forever. The tax rate is Te. Debt is risk free and pays…

A: A tax shield is a deduction in taxable income that a company can claim. It can be due to…

Q: Selma and Patty Bouvier are twins and both work at the Springfield DMV.  Selma and Patty Bouvier…

A: Compounding is a technique to compute the future value (FV) of the present amount by considering the…

Q: ​(Related to Checkpoint​ 6.5)  ​(Present value of a growing​ perpetuity)  What is the present value…

A: Year one cash flow = $2500 Growth rate = 0.02 Discount rate = 0.13 Discount rate = 0.11 Present…

Q: A 5-year project will require an investment of $100 million. This comprises of plant and machinery…

A: Working Note #1 Calculation of depreciation:  Year 1 2 3 4 5 Opening Balance ($) 80000000…

Q: Brendon Walsh wants to borrow $30,000 from the bank. The interest rate is 6% and the term is for 5…

A: A loan is an agreement between two parties where an amount is exchanged in return for future…

Q: Assume you purchased a house on January 1, 2020 for $200,000. You had made a down payment of 20% on…

A: Calculating your monthly payments will allow you to determine if you can afford to finance an item…

Q: If the company was calculating its weighted average cost of capital(WACC),the proportion of…

A: WACC: It represents the average cost of capital for the company or a firm. It is estimated by the…

Q: -Cropiva manufactures agricultural equipment, and they are planning on introducing a new product…

A: The question is based on the concept of investment appraisal for the long term. The net present…

Q: write a short report on Y Combinator, on its business model and the amount and sources of capital it…

A: A business model is a firm's primary strategy for operating financially. Models often include…

Q: A washer- dryer combination listed at $ 1136 has a net price of $760. What is the rate of discount?…

A: List price = $1136 Net price = $760 Discount amount = $1136 - $760 = $376 Discount rate = ?…

Q: that produces batik and other traditional clothing. The company's financial data is as follows.…

A: When a corporation raises funds by issuing debt instruments to investors, this is referred to as…

Q: Part 1 ​(Comprehensive problem)  Over the past few​ years, Microsoft founder Bill​ Gates' net worth…

A: Present value of annuity is the current value of the future payments that are calculated using the…

Q: Better plc is comparing two mutually exclusive projects, whose details are given below. The…

A: The process of evaluating potential investments and projects is known as capital budgeting. It…

Q: The going annual interest rate for a loan with a term of 30 years is 6% compounded monthly. The…

A: Going interest rate refers to the interest rate prevailing in market for loans or bonds. It is used…

Q: Haswell Enterprises' bonds have a 10-year maturity, a 6.25% semiannual coupon, and a par value of…

A: Data given: Par value = $1000 N= 10 year Coupon= 6.25% (semiannual) Interest rate =10.5% (semi…

Q: Smiling Elephant, Inc., has an issue of preferred stock outstanding that pays a $5.30 dividend every…

A: The dividend discount model states that the share price can be calculated by adding up the…