SOLVE STEP BY STEP IN DIGITAL FORMAT TOPIC: SABBING FUNDS 1.- The company Keops will replace a piece of equipment with a value of $630,000, so it plans to have that amount in 2 years with fixed quarterly deposits in a financial institution that offers an annual rate of 7%, compounded quarterly. Develop the calculation of deposits (income), interest, accumulated amounts and build the complete corresponding sinking fund table.
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- Choose the correct letter of answer: Company D's current assets and current liabilities are P200,000.00 and P140,000.00 respectively. How much additional funds can it borrow from banks for short term, without reducing the current ratio below 1.33? a. P13,800.00b. P86,200.00c. P52,612.00d. P35,870.00e. P41,818.00Company Flora has the following items on its B/S: Money at bank ( no maturity) : USD 52,000 at 1% LT securities (2 years) : USD 135,000 invested at 10% Overdraft from bank (no maturity): USD 17,000 at 4% Equity ( 5 years) : USD 100,000 LT borrowings (2 years): USD 120,000 at 3% Financial assets (5 years): USD 135,000 at 1.5% ST borrowings (8 months): USD 119,000 at 8% Identify the time buckets for the company? What will be the Net interest income variation for the period of 2 years, if interest rates have a 2% variation? What will be the Net interest income variation for the period of 5 years, if interest rates have a 1% variation? Calculate the net interest margin for the company? (total inflows from interest - total outflows from interest) *Assume a bank has the following balance sheet. Determine the 2-year GAP. AssetAmount LiabilityAmountCash$100 90-day CDs$1006-month Gbonds$400 360-day CDs$200 2-yearcommercialloans$400 Time Deposits 2- year $900 5-year fixedrate loans$500 Stockholder’s equity$200 Total$1,400 Total$1,400 GAP = (RSA2 yr – RSL2 yr) 0 -$100 -$200 -$300 -$800
- An accounting firm agrees to purchase a computer for $130,000 (cash on delivery) and the delivery date is in 270 days. How much do the owners need to deposit in an account paying 0.55%compounded quarterly so that they will have $130,000 in 270 days? (a) State the type. sinking fundamortization ordinary annuitypresent valuefuture value (b) Answer the question. (Round your answer to the nearest cent.)UPVOTE WILL BE GIVEN! WRITE THE SOLUTIONS LEGIBLY. YOU MAY USE EXCEL. The amount of interest earned in 11 years on Php 1,000,000 deposited in an account paying 8% interest, compounded monthly is Php 1,403,869.28. a. True b. FalseMf3. : An entity took UAH 100,000 loan for 5 at 26% of annual interest rate. Interests are paid annually. A bank is using annuity due scheme. Interest revenue for a bank in period 1 is: An entity took UAH 100,000 loan for 5 at 26% of annual interest rate. Interests are paid annually. A bank is using annuity due scheme. Principal, paid in the fourth period, is: Outstanding loan amount is USD 17,000.00. Annuity is USD 4,315.27, interest rate is 18%. The amount of principal, paid in the given period is: Outstanding loan amount is USD 22,000.00. Annual interest rate is 11%. Interest is paid at the end of each year. In the given period bank received USD 4,300.00 of principal payment. The annuity amount is:
- Study this case and answer question asked below: You have the following quotes from Bank A & Bank B Bank A: Bank B SPOT USD/CHF 1.4650/55 USD/CHF 1.4653/60 3-months 5/10 6-months 10/15 Cash/Spot 1/2 SPOT GBP/USD 1.7645/60 GBD/USD 1.7640/50 3-months 25/20 6-months 35/25 If you want to buy 1 million GBP Spot against CHF you have to pay Minimum Amount you have to pay is a. CHF 2.5866 Million b. CHF 2.5881 Million c. CHF 2.5875 Million d. CHF 2.5863 MillionA bank gives a loan to a company to purchase equipment which is worth of Tk.1250000 at an interest rate of 11.5% compounded annually. This amount should be repaid in 12 yearly equal installments. Find the installment amount that the company has to pay the bank. Also Draw the cash flow diagramA fund is created by making equal monthly deposits of P4,000 at 9% converted monthly for half a year. Find the following: 1. the sum after half a year2. periodic depositChoices a. 0.75b. 0.0075c. 6d. 1/2e. P24, 454.53f. P16, 180.90g. P4,000.00
- You borrowed $10,000 from a bank to invest in IT & Mobile technology with payback the loan in graduated payment plan. If your first payment is $1,000 at the end of first year and i=10% over 5 years. Note: (P/G, 10%, 5) = 6.86 Q/Find the total earned interest by the bank at the end of period?Series of deposits worth P10, 000, P20, 000 P8, 000 and P5,000 were made at t=0,1,4,6 quarter, respectively. Withdrawals were made on the 2nd and on the 4th quarter respectively. Money is worth 10% CSA (a) Solve for X (b) the amount of money in the bank at t=5Part 1 You have P10,000 to invest. You do not want to take any risk, so you will put the funds in a savings account at the local bank. Of the following choices, which one will produce the largest sum at the end of 22 years? An account that compounds interest. please explain 1.1 Annually 1.2 Daily 1.3 Quarterly 1.4 Monthly 2. The company is setting aside funds to acquire a property for its new warehouse. The company needs P74,735 to make the down payment. The company deposits P5,000/month in the fund account which pays 1% per month. As the financial manager you have been tasked to determine how long it will take to accumulate enough funds to acquire the property? 3. Suppose you are 40 years old and plans to retire in exactly 20 years. Twenty one years from now you will need to withdraw P50,000 per year from your retirement fund to add to your SSS pension. Assume you are to live for 85 years, how much money should you place in the retirement fund each year for the next 20…