A payday loan is structured to obscure the true interest rate you are paying. For example, in Washington, you pay a $30 "fee" for a two-week $200 payday loan (when you repay the loan, you pay $230). What is the effective annual interest rate for this loan? (Assume 26 bi-weekly periods per year.) The effective annual interest rate is ______%.
Q: tion above, us Figure 12.4 on page corresponding tax page 397 to determ owe the governmer 1. Who mus...
A: Because you have asked multiple questions, we will only solve the first question as per policy. Plea...
Q: You want to start saving for your first car which costs R300 000. You decide to save by investing in...
A: The investment made monthly grow to much larger amount due to the power of compounding over the peri...
Q: Bulldogs Inc. loaned a certain amount from a reputable bank for a term of one year at 8% quoted rate...
A: Principal = P 415000 Principal - Compensating balance = P 375000 Nominal interest rate = 8%
Q: pleased to see that you have been given a 5.62% raise this year. However, you read on the Wall Stree...
A: Purchasing power is the ability to buy the goods with given money but inflation is one important fac...
Q: Assume the following ratios are constant. Total asset turnover = 2.16 Profit margin ...
A: Sustainable growth rate can be defined as the maximum growth rate that a company can sustain without...
Q: Convert the following cash flows to a uniform payment series, where n=3 starting at year 3 and i=3%....
A: The value of same amount of money will be different at various point of time. This is because, the v...
Q: blend of equity and debt used by the firm. dividend yield of the firm's stock. maturity date for the...
A: Company uses different modes to raise money for business for the growth and expansion of business.
Q: Delta Sonic, a chain of full service automotive detailers, is considering introducing a new 15-minut...
A: To Find: Projected incremental sales
Q: The __________ is used to determine a sole proprietor’s or company’s worth by listing all the assets...
A: A balance sheet is a financial statement that shows the assets, liabilities, and shareholder equity ...
Q: A management is faced with the problem of choosing one of three products for manufacturing. The pote...
A: Solution:- Decision regarding choice of product should be on the basis of expected value. The produc...
Q: Suppose portfolio mean return is 25% and standard deviation 30%. Find the 2 standard deviation range...
A: We will find out the value of 5% VaR and will check whether it is below -30% or above.
Q: Using either logarithms or a graphing calculator, find the time required for the initial amount to b...
A: Solution:- We know, future value means the amount to be receivable at the maturity after compounded...
Q: A customer is going to buy a brand new pump and motor. It has an initial cost of $10,000. The lifeti...
A: To break even, present value of inflows shall be equal to the initial cost of the project.
Q: International Fabric, Inc. must decide which type of fabric cutting machines it will use - Machine A...
A: we will find the equated annual cost of both machinery A and B and will select the machinery which h...
Q: 2. Find the present value of perpetuity of Php 15,000 payable semiannually if money is worth 8% comp...
A: Since only question 2 is full visible, the following solution also relates to question 2 only. Solut...
Q: Assume that the population of a town (one million people) is exposed to a toxle pollutant. The envir...
A: The benefit of avoiding the chances of death or fatality helps in knowing the economic value is know...
Q: Marcy borrowed P1M in a bank that charged 18% compounded monthly and agreed to make monthly payments...
A: Monthly Compounding: It is the interest of interest to the principal sum of a loan or deposit and o...
Q: 5. A $200 loan is offered with an annual simple interest rate of 6 percent. How much would the borro...
A: Solution:- When a loan is taken, the lender charges interest on it and in simple interest method, in...
Q: hat sum of money must be deposited in a trust fund to provide a scholarship of $1520.00, quarterly f...
A: Present value of amount to be received in the future will give the value of the annuity amount depen...
Q: What are the four different markets in a foreign exchange market
A: There are different types of foreign exchange markets. This depends on the underlying characteristic...
Q: Which one of the following is not true regarding a currency board? Currency board holds internationa...
A: Currency board is one of the way to manage the exchange rate and foreign currency and supply of fore...
Q: Balance sheet Assets (in KD) Liabilities (in KD) Cash 53627 Accounts payable 80000 Accounts receivab...
A: Solution:- Current ratio measures the liquidity of the company ie. the ratio of current assets to cu...
Q: A $90,000 reverse mortgage is for 10 years at 8% interest rate where payments are made monthly at th...
A: In reverse mortgage, the home owner receives monthly payments as income rather than payment which in...
Q: must she
A: An installment that is paid on monthly basis is called PMT. A fixed amount of interest is to be char...
Q: Susie opens a simple interest checking account. After 6 months, her account grew from P5,000 to P506...
A: Solution:- Interest rate means the rate at which the amount invested grows to give high return of mo...
Q: Which of the following will increase the WACC for a tax-paying company? Decrease the proportion of e...
A: WACC or the weighted average cost of capital implies for the cost incurred for raising the total amo...
Q: Investment Proposals for Orio Coffee House Daniel Jackson, CEO of OCH, has approached you to work o...
A: Net Present Value: It is the difference between the the present value of cash outflows and present v...
Q: How much larger will the value of an RRSP be at the end of 20 years if the contributor makes month-e...
A: Future Value of Ordinary Annuity refers to the concept which determines the sum total of all the cas...
Q: To start saving for retirement, Michelle opens an RRSP that earns interest at a rate of 4.4% compoun...
A: Given, Quarterly payment is $580 Number of years is 12 Rate is 4.4% compounded quarterly.
Q: Russ and Roz Rosow have a ten-year-old loan with which they purchased their house. Their interest ra...
A: (Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the questio...
Q: .Use the exact interest method (365 days) and the ordinary interest method (360 days) to compare the...
A: Exact Interest: Exact interest computes the interest that is based on a year having 365 days. Ordi...
Q: Bulldogs Inc. offered a one-year loan to a customer client. The instrument is a discounted note with...
A: Discount rate (DR) = 15%
Q: A 5-year project will require an investment of $100 million. This comprises of plant and machinery w...
A: Project life is 5 years Initial investment is $100 million Incremantal revenue is $120 million Expen...
Q: Amiel paid P1,400 interest for his loan from a cooperative that charges simple interest rate of 3.5%...
A: Answer - Based on the given conditions, formulate: 1400=3.5%×x 0.035x=1400 Step 1 - Divide both si...
Q: What is the accumulated value of deposits of $1020.00 made at the end of every six months for three ...
A: Accumulated deposits include the amount deposited and compounding interest accumulated over the peri...
Q: How much interest is earned in 4 years on P12,000 deposited in an account paying 4% compounded semi-...
A: Interest earned = Future value - Present value
Q: Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over t...
A: Market value is another term for current pricing. It is the most recent price at which a share of st...
Q: Regarding MM 1958 proposition, a firm's value is not influenced by O interest rate paid on debt. req...
A: Modigliani-Miller's approach is considered to be one of the most important theorems in corporate fin...
Q: Determine the initial cash flow for the project. Determine the earnings before taxes for years 1 thr...
A: Since you have asked a multi-part question, we will answer the first three subparts for you. Investm...
Q: The Salad Oil Storage Company (SOS) has financed a large part of its facilities with long-term debt....
A: As SOS has financed a large part with long term debt so there is a chance that the shareholder can l...
Q: Which do you prefer: a bank account that pays 5.3% per year (EAR) for three years or a. An account t...
A: Here, Current EAR is 5.3% per year Time Period is 3 years Case-a: When interest rate is 2.9% every s...
Q: The working capital financing policy that would put a company to the highest level of risk is the on...
A: Working capital is the management of the current assets of a company and paying the short term oblig...
Q: Correlations change over time. Assets more strongly positively correlated wh market crashes, and les...
A: A portfolio is a collection of financial assets such as stocks, bonds, commodities, cash and cash eq...
Q: You borrow $5000 now and agree to pay this whole amount back in three payments Poyment 1. SX in 2 mo...
A: Discounting of money is the process of determining the present value of future cash flows. The inter...
Q: For each of the companies described here, would you expect it to have a low, medium, or high dividen...
A: Dividend payout ratio indicate how much earning of a company is paid to shareholder as a reward in t...
Q: You borrow $5000 now and agree to pay this whole amount back in three payments: Payment 1. SX in 3 m...
A: The value of a certain amount of money at current time will not be the same as value of same amount ...
Q: mplete the table below by computing the unknown component of annuity. R No. r A Php 900 6% 6 4 yrs M...
A: Since you have posted a multiple question therefore we will be solving the first question only as pe...
Q: Inc., a corporation that issues ordinary shares with par value, completed a 2-for-1 stock split on a...
A: New Par Value = Existing Par Value * (1/stock split ratio) = 175 * (1/2) = 87.5 New par value is 87....
Q: Preferred stocks are characterized by all the following, except voting rights are generally not ...
A: As per Bartleby honor code, when multiple questions are asked, the expert is required only to answer...
Q: NEKO Inc. has forecasted that its net income will be P400,000. The company has debt ratio of 30%. Th...
A: Net income (NI) = P400,000 Debt ratio = 30% Equity ratio (ER) = 100%-30% = 70% Investment requiremen...
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- A payday loan is structured to obscure the true interest rate you are paying. For example, in Washington, you pay a $30 "fee" for a two-week $200 payday loan (when you repay the loan, you pay $230). What is the effective annual interest rate for this loan? (Assume 26 bi-weekly periods per year.) The effective annual interest rate is%. (Round to two decimal places.)A payday loan is structured to obscure the true interest rate you are paying. For example, you pay a $15 "fee" for a two-week $180 payday loan (when you repay the loan in two weeks, you pay $180+$15). What is the effective annual interest rate for this loan? Assume 26 bi-weekly periods per year. Enter your answer as a decimal, rounded to 4 decimal places. Your Answer:A payday loan is structured to obscure the true interest rate you are paying. For example, in Washington, you pay a $30 "fee" for a two-week $200 payday loan (when you repay the loan, you pay $230). What is the effective annual interest rate for this loan? (Assume 26 bi-weekly periods per year.) The effective annual interest rate is _________________% %.(Round to two decimal places.)
- A payday lender lends money on the following terms: “If I give you $100 today, you will write me a check for $120, which you will redeem or I will cash on your next payday.” Noting that calculated rates would be even higher for closer paydays, assume that the payday is two weeks away. (a) What nominal interest rate per year (r) is the lender charging? (b) What effective interest rate per year (ia) is the lender charging? (c) If the lender started with $100 and was able to keep it, as well as all the money received, loaned out at all times, how much money does the lender have at the end of one year?You borrow $1,000 from the bank and agree to repay the loan over the next year in 12 equal monthly payments of $90. However, the bank also charges you a loan initiation fee of $18, which is taken out of the initial proceeds of the loan. What is the effective annual interest rate on the loan, taking account of the impact of the initiation fee? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Use a financial calculator or Excel. Effective annual interest rate 1.49 %A payday loan company charges a $25 fee for a $550 payday loan that will be repaid in 14 days using ordinary simple interest.Treating the fee as interest paid, what is the equivalent annual interest rate?
- You've worked out a line of credit arrangement that allows you to borrow up to $70 million at any time. The interest rate is .391 percent per month. In addition, 5 percent of the amount that you borrow must be deposited in a noninterest - bearing account. Assume that your bank uses compound interest on its line of credit loans. What is the effective annual interest rate on this lending arrangement? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e. g., 32.1 Suppose you need $15 million today and you repay it in eight months. How much interest will you pay? Note: Do not round intermediate calculations and enter your answer in dollars, not millions, rounded to 2 decimal places, e.g., 1, 234, 567.89.You've borrowed $6,903.71 and agreed to pay back the loan with monthly payments of $270. Assume the interest rate is 15% stated as an APR. a. How long will it take you to pay back the loan? Note: Do not round intermediate calculations. Round your answer to the nearest whole number. Number of months b. What is the effective annual rate on the loan? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Effective annual rate %You've worked out a line of credit arrangement that allows you to borrow up to $70 million at any time. The interest rate is .375 percent per month. In addition, 4 percent of the amount that you borrow must be deposited in a noninterest-bearing account. Assume that your bank uses compound interest on its line-of-credit loans. a. What is the effective annual interest rate on this lending arrangement? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.1 b. Suppose you need $25 million today and you repay it in eight months. How much interest will you pay? Note: Do not round intermediate calculations and enter your answer in dollars, not millions, rounded to 2 decimal places, e.g., 1,234,567.89. a. Effective annual rate b. Total interest paid %
- Banks sometimes quote interest rates in the form of “add-on interest.” In this case, if a 1-year loan is quoted with an interest rate of 8.0% and you borrow $1,000, then you pay back $1,080. But you make these payments in monthly instalments of $108 each.a) What is the true APR on this loan?b) What is the effective annual rate on the loan?7. The remainder on a home loan is refinanced by a bank. The refinanced loan is a 15-year loan for $176,200 scheduled to be paid off using monthly payments. The annual percentage rate for the loan is 3.15% a. Identify the APR for this loan in decimal form. Use four decimal place accuracy. b. Identify the number of payments per year used in the loan payment formula. C. Calculate the monthly payment required to pay off this loan. d. Calculate the total amount of all the payments required to pay off this loan. e. Calculate the total amount paid towards interest after the loan is paid off. f. Calculate the percentage of the total amount that is paid towards interest.Pursell Bank offers you a five-year loan for $100,000 at an annual interest rate of 6.8 percent. What will your annual loan payment be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Annual loan payment