A business loan of 800,000 is to be repaid in full after 2 year. What is the amount to be paid if the effective rate of interest is 8%

Q: Spotless Cleaning Ltd wishes to evaluate an investment on a particular washing machine. In your role...

A: Net present value is the difference between present value of cash inflows and present value of cash ...

Q: ohn is in a high income-tax bracket and wishes to minimize current taxes payable. He also has a size...

A: As the dividend policy will have no impact on the value of the firm the dividend policy should be su...

Q: Suppose that the treasurer of IBM has an extra cash reserve of $100,000,000 to invest for six months...

A: Exchange rate risk is the risk of unexpected changes in the two countries' exchange rates. The excha...

Q: Short term financing includes which of the following:

A: A company needs financial capital to carry out its various projects and thereby by increase the weal...

Q: Compute for the Effective Interest Rate Payment Period = Quarter 10% Compounded Yearly = 10% Compou...

A: To Find: Effective interest rate payment period= Quaterly

Q: The following is the excerpt of financial information of WATANABE Corporation on December 31, 2022, ...

A: Inventory: Inventory can be described as a good or material that a company holds for the purpose of ...

Q: F G H Monthly Monthly Еxcess Excess return for Market Stock 1 Returns 0.09 0.03 -0.07 0.01 0.02 0.02...

A: Risk and return are two main components of investment. Beta a measure which shows the degree of risk...

Q: You are to pay a bill in Meralco every month for 5 years. The accumulated amount of the payment you ...

A: Annuities are financial contracts that provide a stable cash flow, typically to retirees. The accumu...

Q: 15. A new employee charged $3120 on his credit card to relocate for his first job. After noticing th...

A: 15)  In the given question, Principle = $3120 Rate of interest = 18% compounded monthly. n = 12 t = ...

Q: CDE Co. has the following liabilities and equity: Accounts payable = P305,200 Income tax payable = P...

A: When one party borrows something from another, usually money, it is referred to as debt. Debt is use...

Q: chine could be purchased for £800,000; it would be used for 3 years and then sold for £580,000. It w...

A: The depreciation of machine have tax advantages and tax on the depreciation reduces the impact of th...

Q: Everything else equal, an industry with more leverage will have a: higher return on assets. higher r...

A: More leverage means more use of debt and less use of equity. 

Q: Adil is paid a commission amount of 2280 RO. During January 2020, his sales were 38,000 RO. What is ...

A: Commission is the amount paid to the salesperson or agent in exchange of services provided by such i...

Q: for Market Price per S

A: Step 1 The market price or market capitalization of a company is calculated using the market price p...

Q: Differentiate between the Passing of Risk and the Passing of Ownership.

A: when the goods are sold the risk remains with the seller until the property in the goods is transfer...

Q: What principal amount is equivalent to a withdrawal of 10,600 on the 2nd year,  4,000 on the 4th yea...

A: Let the principal amount = P Withdrawal in year 2 (W2) = 10600 W4 = 4000 Deposit in year 5 (D5) = 54...

Q: An installment contract for the purchase of a car requires payments of $346.89 at the end of each mo...

A: Present Value:  The present value is the value of cash flow stream or the fixed lump sum amount at t...

Q: $72,650.07     $72,358.82     $72,000.00

A: Present Value: It represents the present worth of the future sum of money and is computed by the pr...

Q: Cash flows cannot be added together unless

A: The concept of time value of money states that value of money and hence value of cash flows changes ...

Q: What is the formula for the NET FIXED ASSET if it is not given in the financial statement?

A: The net value of a company's fixed assets is measured using net fixed assets. It's computed by addin...

Q: A demand loan of $3000.00 is repaid by payments of $1500.00 after two years, $1500.00 after four yea...

A: Initial principal amount = $3000 Rate of interest for Ist 2 years = 5% per year Total amount after 2...

Q: A lock-out provision Prevents even small payments in excess of the contracted amount.

A: Lockout provision is basically prohibit for any advance payment during a specified period. In simple...

Q: Closing Market Index value Closing Price for PIM 01/02/2017 2278.87 41.96 Calculate the month...

A: All stock prices have the nearest price when the stock exchange closes the date.The price quoted at ...

Q: For your footwear company, you need to explain the following thinks for projection  Trends in; o ...

A: The forecasted growth and revenues are the important tools which are used by the research analysts f...

Q: At an interest rate of 10% per year, the perpetual equivalent annual cost of $70,000 now, $100,000 a...

A: Perpetual equivalent annual cost in simple words is an annual cost of one period considering the who...

Q: Differentiate annuity dues and deferred annuities.

A: An annuity can be divided into two types: Annuity due: Unlike a regular annuity, annuity due paymen...

Q: You are a financial manager for Shah Corporation. The firm is facing financing issues because of the...

A: Given , Mr. Shah wants to reduce the annual dividend by 1.05%. Constant dividend = $0.30 per share i...

Q: A student purchases a laptop computer by obtaining a simple interest loan. The computer costs ₱35,00...

A: Computer cost (C) = P 35000 Interest rate (r) = 8% Total weeks in 1.5 years (n) = 52 * 1.5 = 78  

Q: A company deposited $14,500 into an investment fund at the beginning of every quarter for 7 years. I...

A: The accumulated value of any fund is equal to the sum of future value of all the deposits made durin...

Q: weighted average cost of capital

A: Weighted Average Cost of capital refers to the cost changed on capital invested in the firm invested...

Q: Based on the following data, calculate the items requested:   Rental Costs Buying Costs Annual ren...

A: Capital budgeting involves evaluation of various options available for Investments or projects. It i...

Q: In your company-owned business, you are contemplating to purchase a new machine for $100,000 that wi...

A: Cost of new machine = $100000 Net Revenue = $10000 Number of years = 4 Interest rate = 15%

Q: How much downpayment should you put at the time of purchase? how would i calculate this in excel?

A: Downpayment: It refers to the amount of money paid by the buyer in the early phase of purchasing go...

Q: You are planning to retire in 25 years time. Immediately after your retirement, you wish to go for a...

A: We are required to find the solution to this question with the help of an Excel  Formula,

Q: What does it mean by "acquisitions versus alliance" when pertaining to diversifying and managing acq...

A: A company or a corporate entity or an organization can diversify and grow using different strategies...

Q: A pump is required for 10 years at a remote location. The pump can be driven by an electric motor if...

A: Interest Rate = 7% Time Period = 10 Years First cost = $3,400 Annual operating cost = $1,200 Annual ...

Q: You are to pay a bill in Meralco every month for 5 years. The accumulated amount of the payment you ...

A: Future Value with compounding other than annual  With frequency of compounding in a year (m), annual...

Q: What is the difference (term of investment) between Money Market, Bond Market, Equity Market, Foreig...

A: Financial markets encompass any marketplace where securities are traded, such as the stock market, b...

Q: For a sum of money invested at 11.5​% compounded for 5 years state the following values. i) The num...

A: Compound interest is when you reinvest the interest earned back so in the next period we earn even m...

Q: Lush Gardens bought a new truck for $85,000. It paid $10,000 as a down payment and financed the bala...

A:

Q: Compute for the Effective Interest Rate Payment Period = Monthly   10% Compounded Yearly = Blank 1...

A: An effective rate of interest is defined as the loan's rate of interest or financial product, which ...

Q: A profitability index of 0.50 for a project means that The project returns 50% in present value for ...

A: Profitability index is calculated by dividing present value of benefits by Investment amount

Q: quire comprises plant an machinery worth $80 million and a net working capital of $20 million. The e...

A: As per the guidelines, in the case of multipart questions, we are required to answer only the first ...

Q: A = ? n = 00 i = 3% P = $12,000,000 Find: A

A: Discounting is a technique to compute the present value (PV) of a future amount by using an appropri...

Q: Calculate the present value and future value of an uneven cash flow stream.

A: A stream of cash flow is uneven  when all the amounts in the series of cash flows are unequal .i.e.,...

Q: A ShanmukhaRao Kosuri Pvt. Ltd. has a target capital structure of 65 percent debt and 35 percent equ...

A: Here, Equity percentage (w1)  = 35% Debt percentage (w2) = 65% Cost of equity (Ke) = 7.5% Cost of de...

Q: You purchase a 8 - year bond at $ 97 per $ 100 par value that pays a 7.3 % coupon per annum . Furthe...

A: Coupon per period = (Coupon rate / No of coupon payments per year) * Par valueCoupon per period = (7...

Q: A ShanmukhaRao Kosuri Pvt. Ltd. has a target capital structure of 65 percent debt and 35 percent equ...

A: Cost of capital = (Cost of debt x Debt percentage) + (Cost of equity x Equity percentage)

Q: An engineer deposits $550 each month into a retirement account. After 30 years, the balance in the a...

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

Q: RM 200 is invested every month for 2 years 7 months at 10 % compounded monthly. What is the future v...

A: Monthly investment (P) = RM 200 Period = 2 Years and 7 Months Monthly period (n) = (2*12)+7 = 24+7 =...

Calculating the Return On A Loan