The present rate for deutsche marks per dollar is 1.79 and 90-day forward rate is 1.78. Compute the annualized discount rate in dollar assuming 365 days in a year. A. -2.266% В. -2.37% С. -2.97% D. -2.164%
Q: If a company purchases merchandise on terms of 1.1/20, n/30, the cash discount available (assuming a…
A: Calculating Cost of credit Days when payment is normally due - Days to avail credit = 30-20=10 360…
Q: What nominal annual discount rate compounded semiannually is equivalent to a nominal rate of…
A: Nominal Interest Rate: When the market inflation is not taken into consideration while computing the…
Q: The approximate effective cost (EC) of financing the discount price of trade credit under terms…
A: Discount (d) = 2% for 10 days and then net on last day, which is day 30. Total days (T) = 30…
Q: The Central bank of Oman issued treasury bills with 180 days maturity and at a discount rate of 6…
A: Treasury Bill: An unsecured short-term government financial obligation guaranteed by the Treasury…
Q: MULTIPLE OPTIONS The conditions of sale for Mulch Corporation are net/90. On average, their…
A: The average investment in receivables can be estimated with the help of days sales outstanding…
Q: RECEIVABLES INVESTMENT McDowell Industries sells on terms of 3 10, net 30. Total sales for the year…
A: Hi student Since there are multiple subparts, we will answer only first three subparts.
Q: GFB Co. buys on terms of 2/15, net 30 days. It does not take discounts, and it typically pays 30…
A: Free Trade credit refers to a type of financing wherein the buyer gets a credit period of…
Q: Calculate the present value of R1 700 received at the end of each month for 6 successive months…
A: Present value is the value obtained by discounting future cash flows at the given discount rate.…
Q: Calculate the annualized discount rate and annualized investment rate on the purchase of 91- day…
A: Given: Face value =$3000Purchase price =$2900
Q: Compute the rate (in %) for the loan. Round answers to the nearest tenth of a percent; use ordinary…
A: Ordinary interest for a loan is a type of simple interest that uses 360 days instead of 365 days as…
Q: Company X sells on a 2/10, net 90, basis. Company Y buys goods with an invoice of $1,500. a. How…
A: Given values: Invoice value = $ 1500 if paid within 10 days discount = 2% with in 90 days it should…
Q: PPG Co. buys on terms of 2/15, net 30 days. It does not take discounts, and it typically pays 30…
A: Credit financing is a type of financing in which a purchase is made on credit, that is, the purchase…
Q: If a company purchases merchandise on terms of 2.7/10, n/30, the cash discount available (assuming a…
A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…
Q: What is the present value of $452,000 to be received in 6 years from today. Assume a per annum…
A: Compound interest is one of the form of interest in which interest is charged on both principal as…
Q: Calculate the annual effective rate equivalent to a nominal rate of 8.84% compounded quarterly.…
A: Given: Nominal rate for quarterly compounding = 8.84% Annual effective rate = (1 + rq/ n)n -1 where…
Q: 17. Compute the rate (in %) for the loan. Round answers to the nearest tenth of a percent; use…
A: Principal = $54000 Interest rate = r Period = 60 days Interest = $864
Q: Given an annual credit sales value of 365 million; accounts receivable beg. 36.5 million, cost of…
A: Solution:- Average Collection Period means the average days it takes a firm to collect money from…
Q: ; 80% of Nadak's accounts receivable are paid within the discount period. Required: a. What is…
A: Given : Annual credit sales total $337.3 million. 2.25% cash discount for payment within 10 days…
Q: P100 is received at the end of one year, P500 at the end of two years, and P1000 at the end of three…
A: Present value is the sum of discount value of all future cash flows.
Q: Compare the stated annual rate (r) to the effective annual rate (EAR). What relationship exists…
A: The effective annual rate of interest is the real return on the savings account when the effects of…
Q: The present rate for deutsche marks per dollar is 1.79 and 90-day forward rate is 1.78. Compute the…
A: The rate used to calculate the present value of a future value is known as discount rate. Discount…
Q: The present rate for deutsche marks per dollar is 1.79 and 90-day forward rate is 1.78. Compute the…
A: Forward contract- It is an over-the-counter derivative contract between the two parties to buy or…
Q: ECEIVABLES INVESTMENT Ewan Industries sells on terms of 3/10, net 40. Total sales for the year are…
A: Average amount of receivables = total sales × days sales outstanding/365
Q: A 91-day Treasury Bill with a face value of $150,000 is sold to yield 3.01 % p.a. What is the…
A: A T-Bill is a money market instrument issued by the Treasury. The maturity date of such bills is…
Q: Using the tables provided, the present value of $13,265.00 (rounded to the nearest dollar) to be…
A: Introduction:- Present Value Factor is used to calculate a present value of all the future value to…
Q: For the following treasury bill bought in 2007, find (a) the price of the T-bill, and (b) the actual…
A: (a) Price of T-bill P = $21000 r = 3.04% = 0.0396 t = 9/12 = 0.75 Discount = P x r x t = 21000 x…
Q: Assume the following annual payments of notes payable of Demi Company with 10% discount rate. 1st…
A: Time value of money concept says that a sum of money invested today will have more value in future…
Q: A firm sells its accounts receivables to a factor at a 1.7% discount. The average collection period…
A: Effective annual interest rate formula: effective annual interest rate =1+rnn-1where,r=discount…
Q: 6) Calculate the EAR for the following annual nominal rates; Annual Rt. Compounding/yr 10.000%…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: A three-year bank CD paying 7.02 percent compounded quarterly. Calculate effective annual interest…
A: The interest that an investor earns on the investment and a borrower pays on loan after considering…
Q: effective
A: Formula to calculate the Effective Annual Rate is: i = (1+r/m)^m - 1 where r is the interest rate…
Q: nider Industries sells on terms of 2/10, net 35. Total sales for the year are $600,000. Thirty…
A: Days sales outstanding means the average number of days , a customer take , to make payment. This…
Q: FP Co. buys on terms 2/10, net 30, but generally does not pay until the 40 days after invoice date.…
A: Trade credit means purchasing of trade goods on credit basis. If there is any discount period, then…
Q: Queen Corp sells on terms of 2/10, n/30. 70% of customers normally avail of the discounts. Annual…
A: The calculation of average accounts receivable has been made as follows:
Q: The present rate for deutsche marks per dollar is 1.79 and 90 day forward rate is 1.78 Compute the…
A: A forward discount is a concept that refers to a situation in which a currency's forward or…
Q: Treasury bills with a nominal value of TL 1.000, which are 280 days to maturity, to 867 What is the…
A: Annual interest rate = [(Nominal value - purchase price)/purchase price] x 365/260
Q: Calla Lily Corp. purchases on terms of 2/8, net 45 days, does not accept discounts, and pays after…
A: Time = 45 days Terms = 2/8 Pay after A = 58 days Year y = 365 days
Q: A 3 month $19,000 treasury bill with a simple annual discount rate of 0.27% was sold in 2016. Assume…
A: Given information: Simple annual discount rate is 0.27% Principal amount is $19,000 Time period is 3…
Q: In October 2008, six-month (182-day) Treasury bills were issued at a discount of 1.42%. What was the…
A: Treasury bills are short term financial instruments that are issued by the US treasury with a…
Q: Assume an effective compound interest rate i = 3% per annum. Compute the following equivalent rates.…
A: Effective annual rate is the interest actually earned on the investment or paid on the loan, as a…
Q: A bank offers an APR of 3.25% compounded semiannually.Find the annual percentage yield (APY). 3.28%…
A: APR = 3.25% Compounded Semi annually Interest rate for semiannual period(r) = 3.25%/2 = 1.625%…
Q: Rounded to two decimal places as a percent, the yield on a new-issue one-year T-bill priced at…
A: Bond: It is a debt instrument that is issued by the company for raising capital. The cost of…
Q: The present rate for deutsche marks per dollar is 1.79 and 90-day forward rate is 1.78. Compute the…
A: The annualized forward discount rate is the rate at which the forward price of a currency is less…
Q: Company X sells on a 2/15, net 90, basis. Company Y buys goods with an invoice of $1,000. a. How…
A: Credit sale term =2/15, net 90 Company Y buys goods of =$1000 Meaning of 2/15, net 90: It means if…
Q: A tresury bill with a face value of 100,000 dollars and 120 days until maturity is selling for…
A: Discount yield of T-bill for a year is Discount yield =[(Face value-selling price)]*360/120
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- The present rate for deutsche marks per dollar is 1.79 and 90-day forward rate is 1.78. Compute the annualized discount rate in dollar assuming 365 days in a year. A. -2.26 B. -2.3 C. -2.9 D. -2.16 4%7%7%6% -2.164%If the annualized cost of the trade credit discount is 7.37%, what is the net trade credit period? Assume a discount percentage of 1% for payments received on or before 20 days. Select one: a. 20 days b. 30 days c. 50 days d. 70 daysAssume the following annual payments of notes payable of Demi Company with 10% discount rate. 1st Year - P300,0002nd Year - P200,000 3rd Year - P400,000 What is the present value of the annual payments?
- 1000 dollars is deposited into an account at the beginning of the year and the value at the end of five years is 1276.30. If the discount was converted monthly, the nominal discount rate is? (That is, d(12) = )If a company purchases merchandise on terms of 2.7/10, n/30, the cash discount available (assuming a 360-day year) is equivalent to an effective annual interest rate ofQueen Corp sells on terms of 2/10, n/30. 70% of customers normally avail of the discounts. Annual sales are P900,000, 80% of which is made on credit. Cost of approximately 75% of sales. Use 360 days. What is the average investment in receivable?
- A one-year floating-rate note pays 6-month Libor plus 90 bps. The floater is priced at 98.67 per 100 of par value. Current 6-month Libor is 1.17%. Assume a 30/360 day-count convention and evenly spaced periods. What is the annual discount margin for the floater in basis points?Sunland Company sold $131000 of goods and accepted the customer's $131000 10%, 1-year note receivable in exchange. Assuming 10% approximates the market rate of return, how much would be reported for the year ending december 31 if sales was made of june 30? $13100. $0 $3275 $6550McEwan Industries sells on terms of 3/10, net 20. Total sales for the year are $971,000; 40% of the customers pay on the 10th day and take discounts, while the other 60% pay, on average, 90 days after their purchases. Assume 365 days in year for your calculations. What is the days sales outstanding? Round your answer to two decimal places. days What is the average amount of receivables? Do not round intermediate calculations. Round your answer to the nearest cent. $ What is the percentage cost of trade credit to customers who take the discount? If your answer is zero, enter zero. Round your answer to two decimal places. % What is the percentage cost of trade credit to customers who do not take the discount and pay in 90 days? If your answer is zero, enter zero. Do not round intermediate calculations. Round your answers to two decimal places. Nominal cost: % Effective cost: % What would happen to McEwan’s accounts receivable if it toughened up on its collection…
- Calculate the annualized discount rate and annualized investment rate on the purchase of 91- day T-bill, if the face value is $3,000 and purchase price is $2,900.Insert an answer for each of the following p= $ 3,200, r=.023, t= 3months. interest ? ________________________. p=$ 1,700, r=.055, t= 90 days. interest ? ____________________________. sales $ 3,790, returns $ 390, sales terms 2/10 n 30. discount ________________? and remittance ( paid) __________________________? ( assume paid in discount period)Salma Corporation sells on terms of net/90. Their accounts receivable are on average 20 days past due. If annual credit sales are P800,000, what is the company’s average investment in accounts receivable? choose the letter of correct answera. P44,444.00b. P144,444.00c. P224,444.00d. P244,444.00e. P344,444.00