A radio commercial for a loan company states: "You only pay 29g a day for each $500 borrowed." If you borrow $1,586 for 166 days, what amount will you repay, and what annual interest rate is the company actually charging? (Assume a 360-day year) a. Amount you repay $(Round to two decimal places.)
Q: 1. find the interest rate. (round your final answer to the nearest percent) P=$55, I=$3.30,t= 6…
A: Bartleby honor code states that when motile questions are asked, the expert is required only to…
Q: Create a comparative financial statement from the followi
A: Financial Statement comprises of Income Statement, Balance Sheet, cash flow statement and Notes to…
Q: ou borrow 300,000 to buy a new house. The loan is a conventional 30-year loans and…
A: Borrowed amount is $300,000 Time period is 30 years Monthly payment is of $2,948.01 To Find:…
Q: Consider the following two mutually exclusive projects: YEAR CASH FLOW (A)…
A: The difference between the current value of cash inflows and outflow of cash over a period of time…
Q: A design studio received a loan of $4,250 at 3.90% compounded semi-annually to purchase a camera. If…
A: The periodic payments are made at regular intervals to amortize or repay loan periodic, the payments…
Q: Iko purchased a house through Stockholm Bank Pvt., Ltd. A year later, Iko wanted to make…
A: A mortgage is a loan availed against the purchase of the real estate. A collateralized mortgage is…
Q: IBM stock currently sells for 64 dollars per share. The implied volatility equals 40.0. The…
A: A financial tactic used with call-and-put options is delta hedging. This tactic lessens the risks…
Q: What is Ferrari’s cost of debt, after-tax, in euros? What is Ferrari’s cost of equity in euros? What…
A: The WACC analysis of component costs helps a firm understand the cost of its different sources of…
Q: Barbie and Ken agrees to lend Dora money in exchange of monthly payments of P = P 5,000 begin- ning…
A: Honor Code: Since you have posted a question with multiple sub-parts, we will solve the first three…
Q: 10. Fred wants to withdraw $1800 every month for two years from his account .How much should Fred…
A: The future of deposit includes the amount that was being deposited over the period and also amount…
Q: WEIGHTED AVERAGE COST OF CAPITAL (WACC) Pure Step operates as a gym in South Africa and is currently…
A: There are multiple sources from which an entity can acquire funds. The collection of all the sources…
Q: Take Rf=4%, E[RM]=8%. Gamma Corporation has a CAPM beta of 1.1 and its earnings are expected to grow…
A: The P/E ratio is the ratio of price per share and earnings per share. It compares the market price…
Q: Discuss the similarities and differences in depository institutions and non-depository institutions
A: Depository institutions and non-depository institutions The financial institution that receives…
Q: For his business, Nicholas leased equipment valued at $23 000. The terms of the lease required…
A: In contrasts to a fee that the borrower may pay the lender or another party, interest is a payment…
Q: Starware Software was founded last year to develop software for gaming applications. The founder…
A: Data given: Initial investment =$1,000,000 Shares of stock received=10,000,000 Investment by venture…
Q: You have purchased a home for $515000 by paying a down payment of 18% and then refinancing the…
A: Homes are purchased by the mortgage loans by paying small down payments and rest is paid by the…
Q: What is the impact to the market value of a company’s equity as its book value of equity increases
A: Book Value of a company indicates Net worth of a company as per books of accounts. Book value…
Q: Calculate the Accrued interest in dollars and the total purchase price in dollars of the Bond…
A: Accrued interest The interest amount that is due on bond or any other debt is known as accrued…
Q: ou have 4 types of assets in your portfolio: Corporate bonds earn 2% return and make up 5% of your…
A: Corporate bonds earn a 2% return and makeup 5% of your portfolio. Large-cap stocks earn a 15% return…
Q: ISK AND RETURN: Stock A and Stock B have the following distribution of rates of return: State of the…
A: Market Condition Probability Stock A Return Recession 10% -20% Normal 60% 10% Boom 30% 70%…
Q: Macaulay duration is the optimal holding period to immunize the interest rate risks, namely to make…
A: Solution: Macaulay duration is the time period at which the re-investment risk and the price risk…
Q: A variable-rate mortgage of $147,000 is amortized over 15 years by equal monthly payments. After 12…
A: The mortgage is a loan taken out to purchase real estate. The real estate itself acts as collateral…
Q: You are looking to invest in a chicken farm which produces $5000 worth of eggs in its first year. As…
A:
Q: d the standard deviation for a security that has three one-year returns of -1%,8% , and 16%,…
A: Standard is one of quantative measure used in finance to measure the risk of the return given by the…
Q: Assume that security returns are generated by the single-index model, Ri = αi + βiRM + ei where Ri…
A: A variance of return refers to the risk embedded in a security or an investment portfolio. Variance…
Q: Suppose the effective rate of interest is 4% per annum during 2010 and 2011, and 2.4695% per half…
A: The idea of money's time worth holds that an amount of money is worth greater now than it will be at…
Q: 3) Tired of being broke: Suppose your client "wants" to deposit $10,000 into a bank that pays them…
A: This relates to the application of time value of money. The amount being deposited in the bank will…
Q: Intuit Inc. (INTU) has a capital structure of 38% debt and 62% equity. The expected return on the…
A: The discount rate is the cost of capital of the company. It is the weighted average cost of using…
Q: Joe-Bob wants to buy a car and will need to take out a loan in order to make the purchase. His…
A:
Q: What are the deltas of a call option and a put option with the following characteristics? Round your…
A: Here,
Q: You have an initial capital of $1000 and purchase $800 worth of Stock A. You also sell short $600…
A: Stock A $ 800.00 Stock B $ 600.00 Stock A initial Price $ 10.00…
Q: What information is found on the balance sheet? A) Results of recurring operations for the period.…
A: Financial Statement comprises of Income Statement, Balance Sheet, cash flow statement and Notes to…
Q: what is the value today of a security that will pay you $46 in three years and $87 six years from…
A: The concept of TVM states that the interest-earning capacity makes the money earned today more…
Q: Problems Under Armour, Inc. is an American supplier of sportswear and casual apparel. Following are…
A: As per our guidelines, we are supposed to answer only 3 sub-parts (if there are multiple sub-parts…
Q: On January 1, the long-term liability section of Cracker & Company Balance Sheet showed a balance of…
A: Cash Flow Statement - It is the statement shows the flow of cash and cash equivalent in three…
Q: 1) How much is did Dora borrowed today? 2) Dora failed to settle all monthly dues scheduled but…
A: Monthly Payment = 5000 Interest = 7.2%
Q: Given: an 11% 120-day $9,000 note. Find the adjusted balance (principal) using the U.S. Rule (360…
A: Given the principal $9000 Rate = 11% Interest for a period of 65 days is =…
Q: Keys Printing plans to issue a $1.000 par value, 20-year noncallable bond with a 7.00% annual…
A: A company's average after-tax cost of capital from all sources, including common stock, preferred…
Q: Ninecent Corporation has a target capital structure of 60 percent common stock, 5 percent preferred…
A: A company's average after-tax cost of capital from all sources, including common stock, preferred…
Q: 0.06 0.07 0.05 [0.08 0.06 0.04 Use the annual interest rate lattice above to answer this question.…
A: Given: Risk Neutral Probability(q) = 0.5 Callable Bond Maturity = 2 years Callable Bond Par Value =…
Q: urrently, Hotel California has no debt (i.e., leverage=0). The CEO of Hotel California considers…
A: Weighted average cost of capital is the weighted cost of debt and weighted cost of debt and is cost…
Q: An annual coupon bond with coupon rate of 7.20% and face value of $1,000 is trading with four months…
A: Accrued interest on the bond is calculated using following equation Accrued interest = t/T×Periodic…
Q: Different methods and their rule of retaining or rejecting an investment project.
A: Concept. There are various methods of capital budgeting used for making investment decisions.
Q: You have just married and are already worried about college for your kids even though you don't have…
A: The concept of money's time value elaborates that any sum of money is worth more currently than it…
Q: (5) Case Study: ABC Bank is interested in knowing the risk exposure of their assets for various…
A: Solution:- Value at Risk (VaR) means the amount at stake. It represents the maximum amount of…
Q: M stock currently sells for 100 dollars per share. The implied volatility equals 20.0. The risk-free…
A: Delta of call option indicates that how much change in price of call option will be there with…
Q: Pina Colada Manufacturing Company is considering three new projects, each requiring an equipment…
A: The time span in which the project earns back its initial investment indicates its payback period.…
Q: Empirical evidence suggests that IPO issues are generally: priced efficiently by the market.…
A: Empirical evidence refers to teh information that is obtained after the observation and the…
Q: You were hired as a consultant to Quigley Company, whose target capital structure is 35% debt, 10%…
A: A company's average after-tax cost of capital from all sources, including common stock, preferred…
Q: Calculate the short-term premium and refund for the policy (in $). Use Table 19-5, if necessary.…
A: The short rate refers to the premium of insurance that should be charged in less than a year of…
Step by step
Solved in 2 steps
- 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 radio commercial for a loan company states: "You only pay 36¢ a day for each $500 borrowed." If you borrow $2,710 for 162 days, what amount will you repay, and what annual interest rate is the company actually charging? (Assume a 360-day year.) a. Amount you repay=$(Round to two decimal places.) IDA 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?A radio commercial for a loan company : “You only pay 30 cents a day for each $ 500 borrowed.” If you borrow 2,570 for 269 days, what amount will you repay , and what annual interest rate is the company actually charging? (Assume a the 360-day year)If you borrow $9000 at an annual percentage rate (APR) of r (as a decimal) from a bank, and if you wish to pay off the loan in 3 years, then your monthly payment M (in dollars) can be calculated using: M = 9000 (er/12-1) / 1 - e-3r 1) Describe what M (0.035) would represent in terms of the loan, APR, and time. 2) If you are only able to afford a max monthly payment of $300, describe how you could use the above formula to figure out what the highest interest rate the bank could offer you and you would still be able to afford the monthly payments. In addition, determine the maximum interest rate that you could afford.
- Today, you borrowed $5,400 on a credit card that charges an interest rate of 13.2 percent, compounded monthly. How long will it take you to pay off this debt assuming that you do not charge anything else and make regular monthly payments of $110? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)Suppose you borrow $15,000 and then repay the loan by making 12 monthly payments of $1,297.92 each. What rate will you be quoted on the loan? NO EXCEL2. You deposit $1500 in an account earning 3.75% interest compounded monthly. A. B.₁ ) How much will you have in the account in 7 years? 5.) How much interest will you have gained? 欢 3. (-) A payday loan company charges a $60 fee for a $700 payday loan that needs to be repaid in 14 days. Treating the fee as interest paid, what is the equivalent simple interest rate? Use the fact that there are 365 days in a year. Round to the nearest hundredth of a percent. Don't be surprised if the answer is more than 100%. 4.1 You pay $450 a month for a loan on a car purchase. You are getting a rate of 5.5% compounded monthly, how much is the remaining balance of the loan for the last 2 years?
- Assume that interest is the only finance charge. Use financial calculator to answer the questions. How much interest would be paid on a $8,000 installment loan to be repaid in 48 monthly installments of $211.10? Round the answer to 4 decimal places. % per month What is the APR on this loan? Round the answer to 2 decimal places. %www Will 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, th bank also charges you a loan initiation fee of $25, which is taken out of the initial proceeds of the loan. What is the effective annuall interest rate on the loan, taking account of the impact of the initiation fee? (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 19.98 % < PrevIf $6,840.00 is loaned for 4 months at an annual simple interest rate of 3.5%, how much interest is earned? (Note: Your answer should include a dollar sign and be accurate to two decimal places)