You have a balance of $7500 on your credit card and you make no further charges. If your APR is 12.5% and each month you make only the minimum payment of 5% of your balance, what will be your balance after 24 months? $1703.27 $3789.06 $3307.83 $2808.28
Q: Suppose a trader opens 8 long positions on a stock futures with price $36.40. The number of stocks…
A: Future contract: An agreement between counterparties to exchange an underlying asset at a…
Q: These are the objectives of Central Bank of Malaysia based on Central Bank of Malaysia Act 1958…
A: Central bank is referred as the public institution, which helps in managing the nations' currency…
Q: Problem 1. Ferry Motors' common stock just paid its annual dividend of $1.80 per share. The required…
A: We will use the dividend discount model here. As per the dividend discount model the value of a…
Q: What are investor motivations for acquiring dual-currency and currency-option bonds? Which is…
A: Dual currency bond is a type of bond which will be issued in one currency and which will pay coupon…
Q: You bought a ten-year zero-coupon bond at a 4% YTM. You intend to sell it in one year. How much must…
A: First we need to determine the current price of the 10 year zero bond Price of bond at time of…
Q: What is the expected return on Dunder Mifflin’s stock? What is the weighted average cost of capital…
A:
Q: 21. Under IFRS, research must be expensed but some development expenditures may be capitalized.…
A: The term "developmental expenditure" refers to government spending that promotes economic growth by…
Q: The payoff table below indicates the returns (in RM thousands) of investments in stock, bond and…
A: Expected monetary value (EMV) Decision tree analysis is used to determine the expected monetary…
Q: Based on the following sensitivity report, what would be the impact of changing the objective…
A: Sensitivity analysis: 100% rule If numerous objective function coefficients are changed, the 100…
Q: The most recent financial statements for Mandy Company are shown here: Income Statement Sales Costs…
A: Solution:- Sustainable growth rate means the growth rate at which the company will grow in future…
Q: In alternative universe, the Australian government has decided to enter into a target-zone…
A: Given: 180000 Current rate = 1.5 AUD/$ Central rate = 1.55 AUD/$ Fluctuate 11% ether side.
Q: Find the monthly house payment necessary to amortize the following loan. In order to purchase a…
A: Monthly payments are like annuities. An annuity is a fixed amount of money that has to be paid in…
Q: 3 These are the examples of non-banking financial intermediaries except:* A. Discount house…
A: Non-banking financial intermediaries: A financial institution that lacks a full banking license and…
Q: The internal rate of return is: discount rate that makes the profitability index (PI) greater than…
A: IRR and PI are important tools of capital budgeting along with NPV. IRR refers to the internal rate…
Q: As the project manager of Budget Pty Ltd, you are considering whether the company should invest in…
A: Many Thanks for the Question: Bartleby's Guideline: “Since you have posted a question with multiple…
Q: Which alternative in the table below should be selected when the MARR = 4% per year? The life of…
A: IRR is a rate at which NPV of the project is equal to the zero or it can be said that PV of cash…
Q: Ms. Esperanto obtained a $40,900 home equity loan at 8.3% compounded monthly. (Do not round…
A: Present Value: The present value is the present sum of a series of fixed payments. The series of…
Q: Maria is a divorce attorney who practices law in San Francisco. She wants to join the American…
A: Here, Details of First Part: Details of Second Part:
Q: You have an opportunity to invest $104,000 now in return for $79,800 in one year and $29,600 in two…
A: A discounted method called net present value (NPV) is used to assess the effectiveness of long-term…
Q: rm's cost of capital is 10%.It is considering two mutually exclusive projects X and Y.The details…
A: Payback period is period required to recover the initial amount of investment and net present value…
Q: What rate of interest (in %) compounded quarterly will yield an effective interest rate of 8.6%?…
A: Effective Annual Rate: The effective annual rate of interest is the actual or the real rate of…
Q: a-1. EPS a-2. PE b. Synergy value
A: Earning per share refers to the amount that shows the company’s profit per outstanding share…
Q: 1. The option is currently A. In-the-money B. At-the-money C. Out-the-money 2. Determine the…
A: An in-the-money option shows the option’s profitability equal to the difference between the market…
Q: Find the monthly house payment necessary to amortize the following loan.
A: Loan: It is the amount of credit or amount borrowed by the borrower from the lender for the purpose…
Q: Compute the price of the bonds based on semiannual analysis.
A: Bond: It is one of the debt security issued by the firm (issuer) to raise capital from the…
Q: Use the following data for the next three questions: Line of Business Paint Hair dye Chalk Widgeta…
A: Herfindahl index show how much is market share and how market share is concentrated and how is…
Q: You shorted a call option on Intuit stock with a strike price of $34. When you sold (wrote) the…
A: Strike Price of $34 Premium received is $6 Time to expiry is 3 months To Find: Payoff profits
Q: A 3 year straight note was executed by a buyer. The interest paid over the term was $3,431.70. The…
A: Given: Years = 3 Interest paid over term = $3,431.70 Interest rate = 9.3%
Q: A company just paid $10 million for a feasibility study. If the company goes ahead with the project,…
A: The question is related to capital Budgeting. The Net Present Value is the excess of Present value…
Q: Jack Harlem owes 10,000 php due in 1 year, and 35,000 php due in 4 years. He agrees to pay 20,000…
A: Given, The amount paid in 1 year is Php 10000 And Php 35000 in 4 years rate is 5.7% compounded…
Q: Prisha received a loan of $8,100 at 5.25% compounded monthly. He settled the loan making periodic…
A: Loans are paid by the periodic payments these are paid by equal periodic payments that carry payment…
Q: 1) What are the critical issues a partnership should address in a buy - sell agreement? 2) what are…
A: Sole proprietorship, partnership, and company: In a sole proprietorship, the business's owner is…
Q: Donna enters into an investment contract that will guarantee her 4% per year if she deposits $3,500…
A:
Q: Heavy Metal Corporation is expected to generate the following free cash flows over the next five…
A: The enterprise value is used to determine the economic value of a company. It gives the whole…
Q: Jack asked Jill to marry him, and she has accepted under one condition: Jack must buy her a new…
A: FV or Future value = PV or Present value * (1 + interest rate)^n "N" or number of compounding…
Q: päring two banks. One bank Is online and offers a savings account Interest rate of 1.75% compounded…
A: SAving banks: Saving banks are financial institutions that collect savings and reward savers with…
Q: What is the future value at end of year 5 for $4K payments made at the beginning of the preceding 5…
A: Future Value: The future value is the value of annuity or the sum lump amount after a certain period…
Q: Under this new and more debt-oriented arrangement, the after-tax cost of debt is 8.8%; the cost of…
A: The question is related to cost of capital. The Weighted Average Cost of Capital WACC is calculated…
Q: Harley worked for many years to save enough money to start his own residential landscape design…
A: External rate of return is the rate at which the extra cash flow form the project is expected to…
Q: A fixed capital investment of 10,000,000 is required for a proposed manufacturing plant and…
A: Accounting rate of return is a ratio in capital budgeting that does not take into account the time…
Q: 14 Risk related to counterparty failure to meet their obligation based on the initially agreed terms…
A: Counterparty risk is the possibility or likelihood that one of the parties to a transaction could…
Q: Banks use to hedge against risk through options and futures contracts in order to:* A.…
A: Banks often enter into various contract wherein a lot of risk may be involved including but not…
Q: A man uses a loan program for small businesses to obtain a loan to help expand his vending machine…
A: The simple interest is one of the method of calculating interest. In simple interest, the interest…
Q: efer to the photo below. Please provide a complete and correct solution.
A: i) Inventory turnover-This ratio shows the number of times a business replaces its stock of goods…
Q: 3.4. The following information is available about Dnieper Company. Number of shares = 100,000 EBIT =…
A: PE Ratio is ratio of market price and earning of shares. Interest coverage ratio is ratio of…
Q: 7 The function of Central Bank of Malaysia are to act as financial advisor, banker and financial…
A: Malaysia's central bank is known as the Central Bank of Malaysia (BNM; Malay: Bank Negara Malaysia).…
Q: He also wants to know how the portion of the home payment that comprises interest changes over the…
A: Interest Payment: It is the monetary charge made by the borrower to the lender. It is computed by…
Q: If P100,000 is invested for 6 months at 1.5% per annum, how much interest is earned? P750 P100,750…
A: Interest Earned = Principal Amount * Rate of Interest * Number of months/12
Q: Suppose you want to save in order to purchase a new car. Take the APR to be 3.6%. If you deposit…
A: Future value of annuity The future value of annuity refers to the total value of the investment at…
Q: An apartment building is generating income of $250000. Maintenance expenses total 40% of this income…
A: Years to purchase means a period in which the value will be recovered from property. It can be…
Step by step
Solved in 3 steps
- Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual interest rate of 6%, and payable in four months. How much interest will Marathon Peanuts owe at the end of four months? A. $2,600 B. $7,800 C. $137,800 D. $132,600A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an annual interest rate of 11%. If 6 months have passed since note establishment, what would be the recorded interest figure at that time? A. $7,150 B. $65,000 C. $14,300 D. $2,383You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.
- Whole Leaves wants to upgrade their equipment, and on January 24 the company takes out a loan from the bank in the amount of $310,000. The terms of the loan are 6.5% annual interest rate, payable in three months. Interest is due in equal payments each month. Compute the interest expense due each month. Show the journal entry to recognize the interest payment on February 24, and the entry for payment of the short-term note and final interest payment on April 24. Round to the nearest cent if required.Sub-Cinema Inc. borrowed $10,000 on Jan. 1 and will repay the loan with 12 equal payments made at the end of the month for 12 months. The interest rate is 12% annually. If the monthly payments are $888.49, what is the journal entry to record the cash received on Jan. 1 and the first payment made on Jan. 31?Assume that you have a balance of $4500 on your Discover credit card and that you make no more charges. Assume that Discover charges 21% APR and that each month you make only the minimum payment of 2.5% of the balance. a) Find a formula for the balance after t monthly payments. b) What will the balance be after 30 months? c) What will the balance be after 10 years?
- Assume that you have a balance of $4200 on your Discover credit card and that you make no more charges. Assume that Discover charges 25% APR and that each month you make only the minimum payment of 2.2% of the balance. What will the balance be after 10 years? (Enter your answer rounded to the nearest cent.)Suppose that on January 1 you have a balance of $3100 on a credit card whose APR is 17%, which you want to pay off in 1 year. Assume that you make no additional charges to the card after January 1 a. Calculate your monthly payments.b. When the card is paid off, how much will you have paid since January 1?c. What percentage of your total payment from part (b) is interest?1. Suppose that on January 1 you have a balance of $5600 on a credit card whose APR is 17%, which you want to pay off in 1 year. Assume that you make no additional charges to the card after January 1. a. Calculate your monthly payments. b. When the card is paid off, how much will you have paid since January 1? c. What percentage of your total payment from part (b) is interest? a. The monthly payment is? Then round to the nearest cent as needed.) 2. Compare the monthly payments and total loan costs for the following pairs of loan options. Assume that both loans are fixed rate and have the same closing costs. You need a $160,000 loan. Option 1: a 30-year loan at an APR of 8%. Option 2: a 15-year loan at an APR of 7.5%. Question content area bottom Part 1 Find the monthly payment for each option. The monthly payment for option 1 is $enter your response here. The monthly payment for option 2 is $enter your response here. (Do not round…
- Suppose your Visa credit card charges an APR of 13.5%, compounded monthly and your current statement shows a balance of $758.50.a) If you make no payments and no additional purchases for one year, what will bethe amount owed at the end of that year?b) How much total interest will be paid?c) What is the nominal rate?d) What is the effective annual rate (EAR)?e) Suppose this credit card company requires a minimum monthly payment of $25.Assuming that no additional purchases are made and also assuming that this minimum amount is paid every month, prepare an amortization schedule for the first three months of payments.If your Visa credit card has an APR of 14.49%, compounded monthly and your current balance is $425.69. a) If you make no payments and no additional purchases for one year, what will bethe amount owed at the end of that year?b) How much total interest will be paid?c) What is the nominal rate?d) What is the effective annual rate (EAR)?e) Suppose this credit card company requires a minimum monthly payment of $15.Assuming that no additional purchases are made and also assuming that this minimum amount is paid every month, prepare an amortization schedule for the first three months of payments.You have a balance of $9700 for your tuition on your American Express credit card. Assume that you take no more charges on the card. Also assume that American Express charges 13% APR and that each month you make only the minimum payment of 4% of the balance. What will the balance be after 32 months? At what balance do you begin making payments of $60.00 or less? How long will it take to get the balance below $50?