Task 1. Compute the interest of the following: 1. P25,000 at 6% simple interest for 1 year. 2. P30,000 at 9.5% simple interest for 90 days. 3. P60,000 at 12.5% simple interest for 2 years and 6 months.
Q: Suppose you take out a loan for 180 days in the amount of $11,500 at 14% ordinary interest. After 60...
A: A loan is an amount borrowed by a party in exchange for its repayment along with some interest.
Q: 1. What is the future amount of my Php 100, 000 after 5 years if I invest today at a rate of 12 % co...
A: Invested amount (X) = Php 100000 n = 5 years Interest rate = 12% Inflation rate = 8% Let the actual ...
Q: The interest rate for an investment is 7% pa compounded monthly. Find the effective interest rate pa...
A: The effective annual rate (EAR) is the actual rate of return earned after taking the compounding eff...
Q: Problem 12-14 Expected Returns (LO2) Consider the following two scenarios for the economy and the ex...
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question...
Q: You wish to buy a house. The market value of the house is $650,000 and you have saved $120,000 as a ...
A: Interest Rate = 6.5% Time Period = 26 Years Market Value = $650,000 Down Payment = $120,000
Q: Imagine that you work for OstBank, a fictional European bank, as part of the team that manages repur...
A: A repurchase agreement with a central bank is an agreement where the central bank agrees to loan out...
Q: 13. Calculating Profitability Index following set of cash flows if the relevant discount rate is 10 ...
A: Profitability Index = (NPV + Initial Investment ) / Initial Investment NPV can be calculated by ...
Q: An amount of 50,000 was borrowed at an interest rate of 10% per year and was to be repaid over a 5-y...
A: Cash Flow Diagram: Income and expenses over some time interval are visually represented in cash flow...
Q: xactly 140 years ago my great grandmother deposited $190 in a large bank. She forgot all about the d...
A: Here we can use the concept of time value of money. As per the concept money earns interest and henc...
Q: Zebra Corporation currently has 2,500,000 shares of stock outstanding that sell for RM45 per share. ...
A: Since you have asked multiple questions, we will solve the first question for you. If you want any s...
Q: You have 24 quarts of brown stock. You need .75 cups to make one serving of kidney beans. How many s...
A: The tracking and evaluation of a firm's cost structure are known as cost accounting. Cost accounting...
Q: A 5-year project will require an investment of $100 million. This comprises of plant and machinery w...
A: Data given: Market price = $500 per share. D1= $4 per share Growth rate = 9% per year for an indef...
Q: Armed with this information, compute: The minimum required return by Cross-Ocean’s debtholders The ...
A: Minimum Required Return: It represents the expected required return to the investors for investing ...
Q: Big Rock is listed on the local stock exchange and its stock has had mixed performance over the last...
A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first t...
Q: A 5-year project will require an investment of $100 million. This comprises of plant and machinery w...
A: NPV is the difference between present value of cash inflows and present value of cash outflows. NPV ...
Q: 8.4 Average Accounting Return Concerning AAR: Describe how the average accounting return is usually ...
A: Average accounting return (AAR) It is a capital budgeting decision tool. It helps to decide on wheth...
Q: BASIC (Questions 1–22) 1. Calculating Payback What is the payback period for the following set ofr c...
A: Year Cash flow 0 -7800 1 3100 2 3200 3 2200 4 1400
Q: Plant Design is a major requirement for you to be able to graduate. Suppose you are a panelist, and ...
A: Project Feasibility: It is an assessment of the practicality of a project or system to objectively ...
Q: damson Corporation is considering four average-risk projects with the following costs and rates of r...
A: WACC refers to weighted average cost of capital. It takes into account each component of capital and...
Q: 4. Calculating AAR You're trying to determine whether or not to expand vour business by building a n...
A: The accounting rate of return is the rate of return which is expected from the investment made by th...
Q: principle invested
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for yo...
Q: Cost of Abalone Country Australia Chile Ireland New Zealand South Africa CLP Abalone Cost AUD 93,500...
A: Data given: $1 US = 104 Yen Offer price = 9.46 million Yen Working Note #1 Offer price in USD: 9.4...
Q: Which of the following statements is not correct about Medicaid? Multiple Choice The Social Security...
A: Medicaid is a government-run health-care programme in the United States for low-income people. Medic...
Q: Usando un MARR de 12 % y presumiendo una vida útil de 10 años para las tres alternativas A , B y C ,...
A: Given: Particulars Amounts MARR 12% Years 10 Initial cost $150.00 Annual benefit $33.50
Q: 3. If money is worth 8% compounded quarter ly, determine the present value of the following: a. An a...
A: Annuity is a series of equal cash flows occurring at regular intervals. A perpetuity is an annuity t...
Q: rejecting it? LO 3 8. Calculating IRR What is the IRR of the following set of cash flows? Year Cash ...
A: Net Present Value: Net present value (NPV) is the excess of present value of cash inflows over the p...
Q: P. to determine the regular payment amount, rounded to the nearest dollar. Consider the following pa...
A: A mortgage is a loan usually on a property where the collateral is the property itself.
Q: New parents wish to save for their newborn's education and wish to have $37,000 at the end of 18 yea...
A: Given P=$37,000 r= 7.8% n=1 t=18 years
Q: Jim has an annual income of $300,000. Jim is looking to buy a house with monthly property taxes of $...
A: Let the monthly mortgage = X Monthly property tax = $1200 Monthly homeowner's insurance = $300 Month...
Q: 4. An annuity pays $6500 at the beginning of every year for 10 years. If the payments are deferred f...
A: The cash value of annuities is the present value of annuities considering the interest rate and peri...
Q: еВook The Paulson Company's year-end balance sheet is shown below. Its cost of common equity is 18%,...
A: Weighted average cost of capital WACC gives the firms combined cost of capital, including the equity...
Q: Suppose an opportunity arises to invest $10 million that will pay $5.5 million at the end of year 1 ...
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for you...
Q: Calculate the simple interest earned. Round to the nearest cent. P = $3900, r = 5.3%, t = 6 months
A: P = $3900 r = 5.3% t = 6 monnths
Q: Chuong Ngo borrows $3200 from a bank that advertises a 8% simple interest rate and repays the loan i...
A: Given: Borrowed amount = $3,200 Simple interest = 8% Monthly payments =4
Q: Suppose there are two investments A and B. Either investment A or B has a 4.5% chance of a loss of $...
A: Value at risk (VaR) is a financial statistic that evaluates an investment's risk. VaR is a statistic...
Q: A mortgage balance of $25,o00 is to be repaid over a 10-year term by equal monthly payments at 5.6% ...
A: Here,
Q: now costs $25.25, and the price has increase exponentially, write an equation that will - Barnaby's ...
A: Future value: Because of the basic principle of the time value of money, one dollar now is worth mo...
Q: A $290,000 house in Hamilton was purchased with a down payment of 20.00% of its value and a 20 year ...
A: Here,
Q: . You buy a 6 year bond with an annual 5% coupon at par value, $1000. If the yield to maturity at th...
A: Since you have asked multiple questions, we will solve the first question for you. If you want any s...
Q: How would an increase in the interest rate or a decrease in the number of periods until the payment ...
A: Interest rate is defined as an amount of an interest due per period as the proportion of amount, whi...
Q: "ou are considering a loan with an annual rate of 8%. The mortgage is $130,000 with 180 monthly paym...
A: The table above is a loan amortization table. We are given with the monthly payment amount and we ne...
Q: Assume that you start with a balance of $3900 on your credit card.During the first month you charge ...
A: Here, Balance on Credit Card is $3900 APR is 29% Charges for first Month is $400 Charges for Second ...
Q: 12. A 20-year 1000 par value bond is purchased at a discount. The bond pays annual coupons of 4%. Th...
A: Bonds are issued at discount or at premium of the par value of bond and discount is below par value ...
Q: A 30 year 1/1 ARM has an initial rate of 3.75%. In the future, the rate will reset to 325 basis poin...
A: LIBOR at the first reset (After 1 year) = 1% In 1/1 ARM, interest rate resets 325 basis points above...
Q: Tanysha plans to invest $15,000 at the beginning of each year for the next 10 years. If her invested...
A: An annuity is defined as the series of payment made each year for a definite period of time. In annu...
Q: 22. A firm may seek to avoid exchange-rate risk by a. Maintaining a net monetary debtor position in ...
A: A firm that is required to pay or receive the amount in foreign currency always has risk that paymen...
Q: Cris Li decided to go into the business at the age of 23, he deposits a certain amount and will incr...
A: Depositing a fixed amount of money in equal intervals of time for a certain period is called annuity...
Q: Find the present value of an annuity P20,000 payable annually for 8 years, with the first payment at...
A: Annual payment (P) = P20,000 Interest rate (r) = 5% Number of annual payment (n) = 8 Years First pa...
Q: R-Kraine Inc. is considering acquiring an existing project (with financial backin government). The p...
A: YTM the yield to maturity of bond is the discount rate at which the discounted value of coupon and p...
Q: The bonds of a company have a face value of $1,000, pay an annual coupon of 7%, and have 5 years rem...
A: Yield to Maturity Yield to maturity refers to the total return of a bond that is expected by the i...
Step by step
Solved in 2 steps
- Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual interest rate of 6%, and payable in four months. How much interest will Marathon Peanuts owe at the end of four months? A. $2,600 B. $7,800 C. $137,800 D. $132,600Samuel Ames owes 20,000 to a friend. He wants to know how much he would have to pay if he paid the debt in 3 annual installments at the end of each year, which would include interest at 14%. Draw a time line for the problem. Indicate what table to use. Look up the table value and place it in a brief formula. Solve.Next Level Potter wishes to deposit a sum that at 12% interest, compounded semiannually, will permit 2 withdrawals: 40,000 at the end of 4 years and 50,000 at the end of 10 years. Analyze the problem to determine the required deposit, stating the procedure to follow and the tables to use in developing the solution.
- Jain Enterprises honors a short-term note payable. Principal on the note is $425,000, with an annual interest rate of 3.5%, due in 6 months. What journal entry is created when Jain honors the note?Use Future Value and Present Value Tables to Apply Compound Interest to Accounting Transactions Kristen Quinn makes equal deposits of $500 semiannually for 4 years. Required: What is the future value at 8%? (Note: Round answers to two decimal places.)Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank in the amount of $500,000. The terms of the loan are 2.9% annual interest rate and payable in 8 months. Interest is due in equal payments each month. Compute the interest expense due each month. Show the journal entry to recognize the interest payment on October 20, and the entry for payment of the short-term note and final interest payment on May 20. Round to the nearest cent if required.
- Beginning three months from now, you want to be able to withdraw €1,200 each quarter from your bank account to cover university expenses over the next four years. Required: If the account pays 1 per cent interest per quarter, how much do you need to have in your bank account today to meet your expense needs over the next four years? Assume the money is withdrawn at the beginning of the quarter. (Round your answer to 2 decimal places (e.g., 32.16). The program includes a margin of error of +/- 0.1%.) PVAQuestion 1 You borrow $50,000 for 5 years. This is an amortized load, meaning that payments are the same each month, and the loan is fully paid off with final payment. The quoted interest rate (or APR) is 12% per year. What is the beginning balance, Payment, Interest, Principal and Ending Balance in months 10 and 25? Enter all the necessary information in an Excel spreadsheet as the example in class, by entering the right formulas in each column. Also copy and paste the final table from Excel in a word document and attach it with your answer.Please show all formulas and the process in Excel for each question. You borrow a GPM of $450,000 with annual payments and 15-year term. The interest rate is 4.5% and the payment factors from year 1 to year 15 are: 50%, 50%, 50%, 50%, 50%, 75%, 75%, 75%, 75%, 75%, 100%, …, 100%. Questions: What are the annual payments for years 1 to 15? What is remaining balance at the end of each year? What are the interest payment and principal payment for years 1 to 15? Answer the questions (1) to (3) above if annual payment is changed to monthly payment.
- Sidney Poitier accumulated $620,000 in an RRSP. He converted the RRSP into a RRIF and started to withdraw $17,500 at the end of every 3 months. If interest is 4.68% compounded monthly, how many withdrawals can be made? Answer to one decimal.Provide formula, step by step manual solution, and diagram for given problem. An employee borrowed P200,000 with 16% interest compounded semi-annually promised to pay every 6 months for 10 years starting today. What amount should he pay every 6 months?2.- $3,500 is deposited into a savings account at the end of each semester for eight and a half years. If no withdrawals are made, how much money will be in the account? The interest rate is 5.5% per semester compounded every semester. Options: 100137.28 102512.37 96789.21 94487.41
