The Royal Bank pays an interest rate of 0.6% on redeemable GICs and 0.75% on non-redeemable GICs. In order to retain the redemption privilege, how much interest must be sacrificed on an investment of $15,000 for 120 days?
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The Royal Bank pays an interest rate of 0.6% on redeemable GICs and 0.75% on non-redeemable GICs. In order to retain the redemption privilege, how much interest must be sacrificed on an investment of $15,000 for 120 days?
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- A bank that provides overdraft protection charges 12 percent for each $100 (or portion of $100) borrowed when an overdraft occurs. a. What amount of interest would the customer pay for a $188 overdraft? (Assume the interest is for the full amount borrowed for whole year.) b. How much would be saved by using the overdraft protection loan if a customer has three overdraft charges of $30 each during the year?A bank pays a simple interest rate of 4.1% on 30 to 179-day GICs of at least $100,000. What is the effective annualized rate of return:a) On a 40-day GIC?b) On a 160-day GIC?Cerise Company would record a note payable of_____, if the terms of the loan with a bank are as follows: Cersie Company would have to make one $102,000 payment in two years. Assume the market interest rate is 10% per year and the company rounds to the nearest dollar. (The present value of $1 for two periods at 10% is 0.82645). a.) $94,498 b.) $84,298 c.) $10,200 d.) $74,098
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- CBA collects its receivables after 25 days on the average, so that they amount to P75,000. A proposal has been made to shorten the credit term to 20 days or by 5 days. Said proposal will reduce receivables (or reduce cash requirement) by P15,000, Assuming 15% cost of money, how much is the expected savings in financing charges?15000 php was loaned from a bank. The choices below show four possible borrowing schemes that the bank offers to repay the loan. Which of the following is the best scheme that offers minimal interest charge? a. quarterly installement of 1,960.35 php for 2 years b. 1.5% interest rate compunded monthly, payable for 3 years c. semi-annual amortization equivalent to 3,844.22 php, payable for 24 months d. 05% interest rate compunded anually, payable after 5 yearsHot issue company sold its machine with a carrying amount of P2,000,000 in exchange for 2,500,000 non-interest bearing note that requires five annual payment of 500,000 starting on January 1, 2022 the market interest for similar notes was 10% and the relevant present value factors are:present value of a single payment at 10% for 5 periods 0.621present value of an ordinary annuity of 1 at 10% for 5 periods 3.791present value of annuity due of 1 at 10% for 5 periods 4.170how much is the gain or loss on sale of machine?a. 104,500 gainb. 85,000 lossc. 85,000 gaind. 104,500 loss
- Hot issue company sold its machine with a carrying amount of P2,000,000 in exchange for P2,500,000 non-interest-bearing note that requires five annual payment of P500,000 starting on January 1, 2022. The market interest for similar notes was 10% and the relevant present value factors are: Present value of a single payment at 10% for 5 periods 0.621 Present value of an ordinary annuity of 1 at 10% for periods 3.791 Present value of an annuity due of 1 at 10% for 5 periods 4.170 How much is the interest income for the year 2022?a. 139,550b. 158,500c. 379,100d. 189,550A bank pays simple interest at the rate of 8% per year for certain deposits. If a customer deposits P10,000 and make no withdrawal for three years what is the interest earned in that period of time? A person borrow P100,000 for a period of 6 months. What simple interest rate is being charged if the amount A that must be paid after 6 months is P104,500?Tokyo Corporation must pay its supplier P500,000. Tokyo Corp's bank has advertised a 270-day loan with simple interest at a rate of 12 percent. On business loans, the bank requires a 20 percent compensating balance. What is the loan's effective annual rate (rEAR) if Tokyo Corporation currently holds no funds with the lending bank? In your calculations, assume that a year has 360 days. a. 12.00% b. 11.35% c. 15.00% d. 11.25% e. 15.27%