What will be the monthly payment on a home mortgage of $75,000 at 12% interest, to be amortized over 30 years?

Q: A four-year project has an initial cost of $20 000, net annual cash inflows of $10 000, and a…

A: IRR (internal rate of return) It is a capital budgeting tool to decide whether the capital budget…

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A: This question can be solved in light of normal annuity and growing annuity. Annuity is a series of…

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A: When loan repayments are made in equal instalments, the relationship between initial loan principal…

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A: Current price of stock may be calculated using dividend discount method using following formula…

Q: An investor purchases a 197 days to maturity T-Bill in the secondary market. The market interest…

A: To Find: Annual effective yield for investors

Q: could you explain computation (1 i )how to find the growth rate and write the formula cle

A: The explanation about the growth rate is given as follows:

Q: steps that you would take to mitigate the risk of interest rate risk

A: The important steps in mitigating interest rate risks are as follows: Diversification: One of the…

Q: ce Which of the following is correct as it relates to using Excel Solver in case of capital…

A: In capital rationing we need to find out the net present value of all projects and one with maximum…

Q: Is the value of money affected by time, and if it is, in which direction? O a. It is not affected O…

A: The value of time of money is the idea that the money currently available is worth more than the…

Q: The beta of Treasury bills is:   Multiple Choice: A) +1.0 B) +0.5 C) −1.0 D) 0.0

A: Beta is a systematic risk of a security (i.e. bond, stock, treasury bills etc.) or portfolio (i.e.…

Q: Explain how risk-return trade-off works in relation to residential and commercial property…

A: The rate of return is the change in the price of an asset, investment, or project over time and can…

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A: The following information has been provided in the question: Default risk premium=2 percent…

Q: A 25-year coupon bond pays an annual coupon of 5 and has a face value of 100. If the current price…

A: Annual Interest = 5% FV = Face Value of the Bond = 100 Price = Current Market Price = 100 Maturity =…

Q: An investor is considering an investment in a short-term debt instrument with time to expiration of…

A: Face value (F) = 150,000 EUR Maturity period (t) = 87 Days Discount rate (r) = 0.038 Days in a year…

Q: purpo Badgeting 3. Keeping track of all income and expenses is very important to achieving your…

A: Financial objectives plays a vital role in the economy , As if we maintain our finances then we will…

Q: Discuss the MODIGLIANI AND MILLER (MM) propositions I and II in a no-tax world. Then, discuss MM…

A: Modigliani and Miller Theorem was proposed by F. Modigliani and M. Miller in 1958, while both of…

Q: What will be the approximate population of the United States, if its current population of 280…

A: To calculate the population after 25 years we will use the below mentioned formula   Population…

Q: What is the present value of the following set of cash flows at an interest rate of 5%; $2000 at the…

A: Interest rate = 5% Year Cash flow 1 2000 4 6000

Q: D. Consider assets A & B where a portfolio of 2 rish risky ECRA) 20% A = 10% : CA, B = 0.4 CAIB 6 E…

A: In a minimum variance portfolio, the portfolio is constructed in such a way that its variance or…

Q: The cost of capital for a firm, rWACC, in a tax-free environment is: I) equal to the market value…

A: Formula for cost of capital= Wt. of equity * Cost of equity + Wt. of debt * Cost of debt * (1- Tax…

Q: In a year in which corporate bonds offered an average return of 9%, treasury bonds offered an…

A: Market risk premium is the difference between the expected return of the stock and the risk free…

Q: The CWI for common stocks (S&P 500) for 1926-2010 (85 years) was $5364.78 based on a geometric mean…

A: Data given: CWI for common stocks (S&P 500) for 1926-2010 (85 years) = $5364.78  Average…

Q: You can buy a piece of land today that you except will be worth $15000 in 9 years. Assuming your…

A: To calculate the value of property today we will use present value formula as follows:   Present…

Q: An insurance company must make payments to a customer of £10 million in one year and £4 million in…

A: Bonds are the long-term financing measures to create debt. Interest (coupon) is paid periodically on…

Q: The total assets of a mutual fund amount to ₱40M and the total liabilities of ₱8M. If you invest ₱1M…

A: Stocks are stocks of corporate capital. In some companies, stocks exist as financial assets that can…

Q: a-1. Using the information above, compute the amount of Roy's Toys quick assets. (Enter your answer…

A: Quick Assets: These are assets that can be easily converted to cash. Therefore, quick assets…

Q: The EPA proposes to cap emissions of ground-level ozone promoting emissions in both Illinois and…

A: Marginal abatement cost is the cost that the concerned institution needs to incur to reduce an…

Q: Given fixed costs is Rs 1,00,000 selling price per unit is Rs 10 and variable cost per unit is Rs 6.…

A: As you have asked more than one question, we will answer the first question for you. To get answers…

Q: how deposits became now a days?

A: Money is stored in banking organizations for safety and is known as bank deposits. These deposits…

Q: Return on asset is a term often used to express income earned on capital invested in a business…

A: The financial ratio of a company's profitability to total assets is known as return on assets (ROA).…

Q: rate" is characterized by being The "discount administered by the Federal Reserve System and not…

A: The discount rate is the rate that the Fed charges to commercial banks and other financial…

Q: Depreciation expense is used to

A: Depreciation is gradual decrease in the value of asset due to normal wear and tear, obsolescence and…

Q: Steve wants to have $5,000, after 3 years, in a savings account that pays 4% interest compounded…

A: Present value of annuity is the current value of the future payments that are calculated using the…

Q: A project has the following cash flows: Year 0 £10,500 initial investment Year 1 4,486 cash inflow…

A: Companies undertake numerous projects in order to enhance income or reduce expenses. A fantastic new…

Q: Anderson Manufacturing Co., a small fabricator of plastics, needs to purchase an extrusion molding…

A: As per the information provided: Principal (P) = $140,000 n = 5 g = 9% or 0.09 i = 13% or 0.13

Q: 1. What are three significant differences between income property finance and owner occupied single…

A: In the world of home financing and commerical and residential real estate financing we come across…

Q: How much did Mr. Chavez gain?   a. Php33,567.00 b. Php34,024.00 c. Php40,274.00 d. Php65,879.00

A: Capital gain or loss refers to a method which shows the relationship between capital gain and…

Q: Suppose a young couple deposits $900 at the end of each quarter in an account that earns 7.6%,…

A: This question is an application of annuity. The future value of an annuity with equal periodic…

Q: If you can earn 13% percent on similar-risk investments, what is the most you would be willing to…

A: We will use the dividend discount model here. As per the dividend discount model the intrinsic value…

Q: 1 A 0 $1,000 $800 YR NPWB 0 A=$1,200 1 2 3 YF

A: Net present value is difference between the present value of cash flow to the initial investment of…

Q: Question 1 You recently went to work for Ndejiku Company, a supplier of auto repair parts used in…

A: The payback period is used to calculate the time required to cover the initial investment. The net…

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A: Given, Two projects A and B with cashflows The cost of capital is 12%

Q: trofitted space-heating system is being considered for a small office building. The system can be…

A: Present worth method is to determine the present value of all cost and benefits from the project.…

Q: You have 1 account:   The balance owed is $625 and a $2500 credit limit.   What is your…

A: Debt-to-credit ratio = Debt availed/Credit limit

Q: A stock model has the parameters u = 1.6, d = 0.4, So = 18. A European call option, expiring at t =…

A: All calculations are done in excel, So, there is no intermediate rounding. Workings: If upward…

Q: Joshua is saving up to buy a house. He invested $10000 at 3.5% per year, compounded quarterly. He…

A: Future Value: The future value is the amount that will be received at the end of a certain period.…

Q: where do the collateral and security in the mortgage market belong? a. securities b. properties…

A: Collateral and security in the mortgage market belong to a. securities.

Q: Why would a company's ROA be positive and its ROE negative

A: ROA refers to return on assets. ROE refers to return on equity.

Q: Suppose that Charles and Nancy are saving to buy a house. They have $20,000 in the bank, but know…

A: The concept of the time value of money states that the same amount of money has more value today…

Q: Compute the payback statistic for Project Y and recommend whether the firm should accept or reject…

A: Answer -   Payback Period -  Payback Period is defined by calculating the time needed (usually…