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- Zerox Copying Company plans to borrow $174,000. New Jersey National Bank will lend the money at one-half percentage point over the prime rate at the time of 12.50 percent (13 percent total) and requires a compensating balance of 24 percent. The principal in this case will be funds that the firm can effectively use in the business. This loan is for one year. a. What is the effective rate of interest? (Input your answer as a percent rounded to 2 decimal places. Use a 360-day year.) b. What would the effective rate be if Zerox were required to make four quarterly payments to retire the loan? (Input your answer as a percent rounded to 2 decimal places.)22. If $120,000 is borrowed to AIB at 15% interest to be paid back over 20 years, how much of the fifteen year's payment is interest (assume annual loan payments)? Hint: 1. Compute PMT 2. Compute the PV at the end of year 14 and the PV at the end of year 15. Compute the difference; you get third year's principal payment. 3. Interest = PMT - 15th year's principal payment. A. $10,883. B. $15,598. C. $16,789. Please provide an accurate answer.5. A recent government study reported that a college degree is worth an extra P150,000 per year income compare to high school graduate. If the interest is 6% per year and you work for 40 years, what is the future compound amount of this extra income? Final Answer = PHP Blank 1]
- Course: Financial MathematicsA capitalist places a sum of $12,500 at 4% per annum and 3.5 months later, another sum of $28,500 at 4.75%. After how much time will two (2) sums placed have yielded equal interest, and how much would first sum have yielded at twice the time, and how much would first sum placed at twice the time and with a discount of 0.5% in rate have yielded? Answers: 5.6 months of time and $408.33 yields the first sum. Please procedures are needed to get answer by professor THANKS :Dsd subject-Accounting You are considering an investment that will pay $24668 in 20 years. If the interest rate is 13.79%, what is the most you should be willing to invest today? (Round to 2 decimal places.)you buy a store worth $250,000 with 20 percent down. The balance is to be paid off with equal annual payments at the end of each year over 30 years at a 9 percent rate of interest. What is the amount of the annual payment? a $ 27,312 b $ 26,691 c $ 23,070 d $ 21,449 e $ 19,467
- May I ask for an explanation and solution to the question for a better understanding. Thank you! 14. Your firm rents office space for P250,000 per year, due at the BEGINNING of each year. If your firm's hurdle rate is 10%, what is the present value of five years' worth of rent? a. P1,042,466.36 b. P170,753.36 c. P402,627.50 d. P155,230.33WhenyoubuyabondforPhP2,000anditpays3%annualinterestfor10years.Howmuchinterest payments would you receive every year? a. PhP 50 b. PhP6 c. PhP5 d. PhP 50A debt of $10,000 is to be repaid by equal Monthly payments at the end of every month for 1 year. Interest is 6% compounded Semi-Annually. What is the size of the payment? Question options: $810.94 $851.72 $860.33 $856.10 Solve on white paper or typed. Not in excel
- McEwan 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…A 91-day Treasury bill issued three weeks ago is quoted at 4.23. How much would you pay for a bill with a face value of $1000? Using dollar figures rounded to the nearest penny, what is the continuously compounded return (on an actual/365) basis?Direction: Solve what is being asked and show your complete and neat solution. (ROUND OF PV FACTORS TO 4 DECIMAL PLACES, ROUND OF FINAL ANSWER TO TWO DECIMAL PLACES. IN MCQs CHOOSE THE BEST ANSWER) If $100 is placed in an account that earns a nominal 4 percent, compounded quarterly, what will it be worth in 5 years?