What do you mean by balloon payment?

Q: What is the amount of each payment?

A: Time value of money (TVM) refers to the method used to measure the amount of money at different…

Q: payback period?

A: Payback period is when the initial cash outflow is recovered via cash inflows

Q: 1. What is the payback period

A: Payback Period is the Period the company is able to recover the investment it has made for a project…

Q: What are the special forms of payment? Give examples for each.

A: Unless otherwise stated, the obligation to deliver begins when the contract is signed. The creditor…

Q: Increasing interest expense will have what effect on EBIT?

A: EBIT stands for Earnings before Interest and Tax, the amount earned by the company from the…

Q: of computing vat payable

A: VAT refers to the type of tax imposed by the government over the sale of goods and services.

Q: When are credits increases? When are credits decreases?

A:

Q: What is meant by Short-term financing?

A: Finance refers to the study of money , currency as well as the capital assets.There are basically…

Q: What is an annuity? How does it differ from a lump sum payment?

A: Annuity:An annuity refers to a series of payments made at regular time intervals. These are…

Q: What are the trade bills?

A: Trade bills are also called Trade Acceptance / Accepted draft

Q: What are the most frequent uses of contingent payments?

A: A contingent payment is a mechanism used in M&A whereby, in addition to an upfront payment,…

Q: What does the time value of money (TVM) mean?

A: Time value of money (TVM): The TVM is the thought that, due to its conceivable gaining control, cash…

Q: What do we mean by a uniform series payment?

A: Under uniform series of payment, payment of same amount is made or received at a regular time…

Q: What is interest rate?

A: Answer: At a particular situation, an interest rate determines how much money a borrower promises to…

Q: Explain Payment Caps and Negative Amortization?

A: Payment Caps: A payment cap is a customer protection that bounds the amount that your monthly…

Q: What is the discounted-payback method?

A: Payback period states the number of years that is taken by the project to recover the investment of…

Q: What is ordinary annuity?

A: Ordinary annuity: An ordinary annuity is a sequence of equivalent payments made at last of…

Q: What is issue of payments deficits

A: Introduction:- payment of deficit means:- Country imports more goods, services, and capital than…

Q: What is a floating rate system?

A: We know that there are two types of rate Fixed Rate System Floating rate system   Fixed Rate…

Q: What is Inflation Premium?

A: Inflation premium: An inflation premium is the piece of the common interest rate coming about…

Q: ired to remit this payment?

A: As per IRS ,if the due date for payment of  federal tax falls on Saturday , Sunday or national…

Q: ermine the amount of each payment?

A: Loan: The loan is a value that is borrowed from external sources like banks and this amount is…

Q: What is the single-payment present-worth factor?

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: Explain mezzanine loan?

A: Mezzanine financing is a blend of both debt and equity financing. It is a way for firms to raise…

Q: What does “nonrecourse” financing mean?

A: Nonrecourse financing is a branch of commercial lending. It makes the lender only to repay from the…

Q: What is net interest margin(NİM)?

A: There are various profitability ratios

Q: What are the essential differences among demand deposits, savings deposits, and time deposits?

A: Deposits refers to the sum of money that are deposited with banks or any financial institution.…

Q: Explain super floating rate tranche?

A: Tranche:  The is the coatings of pooled securities having diverse risk factors for diverse level on…

Q: Where does the discount rate from present value came from? How to solve it?

A: In finance, a reduction rate is that the rate of come wont to discount future money flows back to…

Q: How much is the VAT Payable?

A: VAT payable is the amount of vat tax which is to be paid to the tax authority of the country and…

Q: What is the present worth of a uniform series payment?

A: The present worth is the value of an asset at present considering an assumed discount rate, which…

Q: What is the future worth of a uniform series payment?

A: The future worth is the value of an asset at a predefined future date which increases at a specific…

Q: Does Compounding Occur at a Different Rate than that at which payments are made? How?

A: Answer: The answer is no, because the compounding takes place at the same rate as that at which…

Q: What would be the value the payment?

A: In this question, we will use the excel function for calculating the maturity value of loan from the…

Q: Why Pay back period method is not as effective as NPV?

A: Payback method  It doesn't consider account inflation as well as the cost of capital. It ignores…

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,…

Q: Is a cap rate the same as an IRR? Which is generally greater? Why?

A: The capitalization rate or cap rate cant be considered as similar to the IRR or the internal rate of…

Q: What is inflation premium (IP)?

A: Inflation premium is considered to be a very popular concept as this is considered to be a major…

Q: Which loan should Spike take and why?

A: Simple interest method is a method of computing interest on borrowed amount where interest is…

Q: What is the discounted payback period?

A: Discounted payback period is period for which present value of cash flow is equivalent to initial…

Q: What is premium on forward rate?

A: A forward rate is referred as an interest rate which is applicable on financial transactions which…