The manager of the Top Star Bakery wishes to give each of 120 employees a holiday bonus. How much is needed to invest monthly for a year at 12% nominal interest rate compounded monthly, so that each employee will received a P1,000.00 bonus?
Q: Suppose UZALO and MUVHANGO are involved in a Heritage Day project. They need to hire two acting…
A: Here, To Find: NPV =?
Q: What is the market price of a $1,000, 9 percent bond paying a semiannual coupon if comparable market…
A: Information Provided: Par value = $1000 Semi-Coupon Rate = 9% Interest rate = 6% Years = 15
Q: . What are the expected rate of return and standard deviation of the portfolio? (Do not round…
A: A portfolio is a collection of different type of investments or financial assets or financial…
Q: An investment opportunity requires a payment of $620 for 12 years, starting a year from today. If…
A: We are given Annual payments(pmt)=620 Rate=6% number of years=12 We have to calculate present value…
Q: Calculate expected demand for the coming week if nothing else changes.
A: The demand is expected to grow as a conference nearby will increase the number of coffees sold.…
Q: what is the compound interst rate per year that makes an amount $1000 two years ago worth $1345.60…
A: Future value (FV) = $1345.60 Initial value (IV) = $1000 Period (n) = 2 Years Interest rate = ?…
Q: Find the final amount of money in an account if $500 is deposited at 7% interest compounded…
A: Future Value refers to the compounded value of a single cash flow received today or multiple cash…
Q: PROBLEM: what is the present equivalent value of BP's proposed payment schedule? GIVEN: F₁ = $3…
A: Present equivalent value is a concept of time value of money and it helps in determining the current…
Q: Profitability ratios help in the analysis of the combined impact of liquidity ratios, asset…
A: A group of financial measurements known as profitability ratios are employed to evaluate a company's…
Q: Using the information in the tables above, please calculate the current market conversion price and…
A: Convertible bonds are bonds that has the pay coupons and can be converted to equity. Only if the…
Q: Healthy while Dags of grapes to the military the variable costs of grapes are $0.10 per pound. a.…
A: As per the Honor code of Bartleby we are bound to given the answer of first question only, please…
Q: Using balance sheet information, the ____ ratio indicates your ability to meet current debt…
A: Balance sheet is a statements which gives amount of assets and liabilities at a point of time.
Q: A company estimates that it will need $375,000 in 11 years to replace an important machine. If it…
A: We need to use future value of annuity formula to calculate payment size PMT =FVn(1+i)n -1i Where…
Q: Suppose that you decide to buy a car for $28,635, including taxes and license fees. You saved $7000…
A: concept. formula to find monthly payment is where , pmt = monthly payment r = interest rate t =…
Q: We have often heard that a dollar today is worth more than a dollar tomorrow. In light of what you…
A: As stated above, the dollar today is worth more than a dollar tomorrow because of the inherent…
Q: Assume a firm's inventory level of $11,000 represents 32 days' sales. Required: a. What is the…
A: The inventory turnover ratio indicates how many times the inventory was sold. It also indicates the…
Q: You receive a $9,000 check from your grandparents for graduation. You decide to save it toward a…
A: Investment The process of investing money in various financial assets or with financial institutions…
Q: 28) 7.25% comp: monthly: if $1,000 is deposited into mouthly, how much is in acct. after Is years?…
A: (Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: Question 8 Christina bought a new car for $21,000. She paid a 10% down payment and financed the…
A: Cost of car=21000 Down payment=10%*21000=2100 Remaining amount=21000-2100=18900 Time period=60…
Q: Cristina borrowed P50,000.00 from Social Security System in the form of calamity loan, with interest…
A: Annuity referes to a series of regular payments being made over a period. If the payments are made…
Q: ASAP. Use 2 decimal places for the final answer 3. If I loaned 167,569 today and promised to pay it…
A: Present Value of Ordinary Annuity refers to the concept which gives out the discounted or today's…
Q: Kasey corporation has a bond outstanding with a coupon rate of 5.96 percent and semiannual payments.…
A: Par value (FV=Future Value) =2000 Coupon payment (PMT)=5.96%*2000=119.20 Rate=5.3% Number of years…
Q: manufacture of such a stopper would imply that the company will buy a machine whose cost would be…
A: IRR is internal rate of return at which net present value is zero and present value of cash flow is…
Q: Which of the following BEST explains the difference between a corporation and an LLC? a) LLCs…
A: Corporation A corporation is a type of business that has its own identity and signature. Companies…
Q: c) You are an engineer working for the city of Seoul. You have estimated the annual toll revenues…
A: The PV analysis is undertaken to measure the profitability of a project by discounting the future…
Q: Determine the simple interest earned on $10,000 after 20 years if the APR is 14 %.
A: Principle amount is $10,000 Time period is 20 years APR is 14% To Find: Simple interest earned
Q: Suppose you receive$130 at the end of each year for the next three years. a. If the interest…
A: The PV of an asset is the value of all its cash flows today discounted at an assumed interest rate.…
Q: A young company currently does not pay a dividend. The company retains all its earnings to finance…
A: Data given: Expected dividend =$ 1.50 g= Growth rate=5% annually forever r= required rate of return…
Q: a) How much is the principal repayment in the first year for a USD 100'000 annuity loan with an…
A: Data given: Loan amount= USD 100,000 Interest rate= 2.5% (assumed compounded annually) n=4 years
Q: Calculate the monthly mortgage payment. Round to the nearest cent. $120,000 is financed for 15 years…
A: Amount=120000 Rate=4.5% number of years=15 We have to calculate monthly payments For this we will…
Q: you are trying to build credit by using a credit card, each time you make a purchase with the credit…
A:
Q: their parents after 5 years. The plan is for each to make semi-annual deposits of P20,000 in their…
A: Future value of deposit includes the amount being deposited and amount of interest being accumulated…
Q: ENGINEERING ECONOMY UPVOTE WILL BE GIVEN. PLEASE WRITE THE COMPLETE SOLUTIONS LEGIBLE. FOLLOW THE…
A: Solution:- When an amount is deposited each period at beginning of period, it is called annuity due.…
Q: A benchmark index has three stocks priced at $50, $26, and $30. The number of outstanding shares for…
A: Index value today= (Market capitalization today/Market capitalization on previous day)*Index value…
Q: As one of the loan officers for Grove Gate Bank, calculate the monthly principal and interest, PI…
A: The loan can be paid by making monthly payments which are also called periodic payments. The monthly…
Q: Problem 3-5 Calculating Leverage Ratios [LO2] Mobius, Incorporated, has a total debt ratio of .36.…
A: Debt to equity ratio is a measure that shows the information on how much of the assets are funded by…
Q: Q2: Following is the contribution margin income statement of a single product company: Sales Less…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Chik’s Chickens has average accounts receivable of $5,533. Sales for the year were $9,000. What is…
A: Average collection period is the days taken by the firm to collect the payment against its account…
Q: 21. Year 2 3 5 6 Machine A cash flow (GH) 15000 21000 32,000 35,000 40,000 43,000 Machine B cash…
A: The payback period is used to measure the time it takes a project to recoup its initial investment.…
Q: Your investment advisor wants you to purchase an annuity that will pay you $81,491 after 10 years.…
A: The present value of an annuity refers to the value of the future payments on the current date…
Q: a) Calculate the main statistic measures to explain the relationship between stock A and the market…
A: Covariance determines the direction of relationship between two variables. Here the two variables…
Q: A firm has a long-term debt-equity ratio of 0.4. Shareholders’ equity is $839,800. Current assets…
A: Solution:- Total debt ratio means the percentage of total debt in the total assets of the entity.…
Q: Acquirer Shares Outstanding Target Shares Outstanding Acquirer Share Price Target Share Price Cash…
A: Given, Acquirer Shares Outstanding = 800,000 Target Shares Outstanding = 5,000 Acquirer Share Price…
Q: Generally, as income rises, the average propensity to consume Group of answer choices stabilizes…
A: Propensity to consume (in economic terms) refers to the consumers willingness to consume within the…
Q: Luisa is concerned about risks and liabilities involved with business ownership. What actions can…
A: There are different legal structure of business such as proprietorship, partnership, corporation…
Q: On the London Metals Exchange, the price for copper to be delivered in one year is $5,820 a ton.…
A: Present value refers to the money available today being more worthful than the amount will receive…
Q: An engineer deposits 7000 pesos every year end in a savings account that pays nominal annual…
A: Future Value of Ordinary Annuity when the interest rate is compounded continuously refers to the…
Q: Ramoncito deposited P15,000.00 today and he deposited the same equal amount each month for the next…
A: Future value of annuity due Annuity is a series of equal payments at equal interval for a specified…
Q: You want to have $46,000 in your savings account 6 years from now, and you're prepared to make equal…
A: Annuity is a series of payments being made in order to receive more value in future. Under ordinary…
Q: What are the differences between a money market and a capital market?
A: Two main sources of finance are: Internal sources External sources. Company requires funds for…
Step by step
Solved in 2 steps with 2 images
- If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?Now assume that it is several years later. The brothers are concerned about the firm’s current credit terms of net 30, which means that contractors buying building products from the firm are not offered a discount and are supposed to pay the full amount in 30 days. Gross sales are now running $1,000,000 a year, and 80% (by dollar volume) of the firm’s paying customers generally pay the full amount on Day 30; the other 20% pay, on average, on Day 40. Of the firm’s gross sales, 2% ends up as bad-debt losses. The brothers are now considering a change in the firm’s credit policy. The change would entail: (1) changing the credit terms to 2/10, net 20, (2) employing stricter credit standards before granting credit, and (3) enforcing collections with greater vigor than in the past. Thus, cash customers and those paying within 10 days would receive a 2% discount, but all others would have to pay the full amount after only 20 days. The brothers believe the discount would both attract additional customers and encourage some existing customers to purchase more from the firm—after all, the discount amounts to a price reduction. Of course, these customers would take the discount and hence would pay in only 10 days. The net expected result is for sales to increase to $1,100,000; for 60% of the paying customers to take the discount and pay on the 10th day; for 30% to pay the full amount on Day 20; for 10% to pay late on Day 30; and for bad-debt losses to fall from 2% to 1% of gross sales. The firm’s operating cost ratio will remain unchanged at 75%, and its cost of carrying receivables will remain unchanged at 12%. To begin the analysis, describe the four variables that make up a firm’s credit policy and explain how each of them affects sales and collections.A construction firm wishes to give each 80 employees a holiday bonus. How much is needed to invest monthly for a year at 12% nominal interest rate, compounded monthly, so that each employee will receive a P5,000.00 bonus?
- The president of a growing engineering firm wishes to give each of 50 employees a holiday bonus. How much is needed to invest monthly for a year at 12% nominal interest rate, compounded quarterly, so that each employee will receive a $1,200 bonus? A.$3,945 B.$3,844 C.$2,075 D.$4,734The president of a growing engineering firm wishes to give each of 20 employees a holiday bonus. How much needs to be deposited each monthfor a year at a 12% nominal rate, compounded monthly, so that each employee will receive a $2,500 bonus? a. $2,070 b. $3,840 c. $3,940 d. $4,170.company aaa wishes to give each 25 employees a christmas bonus how much is needed to invest monthly for a year at an 8% interest rate compounded quarterly so that each employee will receive a 1500 cash bonus
- An employee borrows P50,000 for seven months at an interest rate of 12% per year. Find the interest earned and the total amount he has to payJayne Company presently pays its employees at the end of each week. The weekly payroll totals $500,000. If Jayne Company were to extend the pay period so as to pay its employees 1 week later throughout an entire year, the employees would in effect be "lending" the firm how much for the year? And if Jayne company gets a discount loan at a 12 percent interest rate. They borrow $100,000 for one year. What is the effective interest rate?Under a factory savings plan, a workman deposits P 25 at the beginning of each month for 4 years, and the management guarantees accumulation at x% compounded monthly. If the workman's credit at the end of 4 years amount to P 1,359, what is the value of x?
- An employee is entitled to a 10 yearly grant of 25,000 pesos each starting at the end of the eleventh year from now. Using an interest rate of 7% compounded annually, what is the value of these grant now? need answer in 20 mins sorry for rushing you guys :(An engineer has received $10 000 from his employer for a patent disclosure. He has decided to invest the money in a 15-year savings certificate that pays 8% per year, compounded annually. What will be the final value of his investment, in terms of today's dollars, if inflation continues at the rate of 6% per year?1. Compute the difference in the future amount of P500 compounded annually at nominal rate of 5% and if it is compounded continuously for 5 years at the same rate? 2. Compute the effective annual interest rate which is equivalent to 5% nominal annual interest compounded continuously? 3. A construction firm wishes to give each 80 employees a holiday bonus. How much is needed to invest monthly for a year at 12% nominal interest rate, compounded monthly, so that each employee will receive a P5,000.00 bonus? 4. A debt of P10,000.00 with 10% interest compounded semi-annually is to be amortized by semi-annual payments over the next 5 years. The first due is 6 months. Determine the semi-annual payments? 5. Mr. Ramirez borrowed P15,000.00 two years ago. The term of the loan is 10% interest for 10 years with uniform payments. He just made his second annual payment. How much principal does he still owe? 6. A service car whose cash price was P540,000.00 was bought with a down-payment of…