How is the Compounding Period equal to Payment Period? Give an example?

Q: What is the amount of each payment?

A: Time value of money (TVM) refers to the method used to measure the amount of money at different…

Q: What are the special forms of payment? Give examples for each.

A: Unless otherwise stated, the obligation to deliver begins when the contract is signed. The creditor…

Q: of computing vat payable

A: VAT refers to the type of tax imposed by the government over the sale of goods and services.

Q: When are credits increases? When are credits decreases?

A:

Q: Why does the time value of money component arise?

A: Time value of money: The value of amount on hand today is more value than the value of amount…

Q: Does the Compounding occur at a different rate than that at which payments are made?

A: No, as compounding occurs at the same rate as compared to that at which payments are made.

Q: Explain the sequential payout tranche structure?

A: Sequential payout tranche structure In this type of structure interest payments are received by…

Q: What are the most frequent uses of contingent payments?

A: A contingent payment is a mechanism used in M&A whereby, in addition to an upfront payment,…

Q: What do we mean by a uniform series payment?

A: Under uniform series of payment, payment of same amount is made or received at a regular time…

Q: Describe the two forms that the calculation of the payback period can take?

A: The payback period alludes to what extent it takes for a speculator to hit breakeven to recoup the…

Q: Explain Computing Holding Period Returns?

A: Introduction: Holding period returns (HPRs): Holding period return (HPR) is one of the investment…

Q: How much is the estimated payment to liabilities with priority?

A: The determination of estimated payment to Liabilities with priority is shown hereunder : The…

Q: Comparison of NPV, IRR or Payback period

A: The net present value (NPV) is the difference between the present value of cash inflows and…

Q: Please explain the difference between the terms interest rate and required return by defining each.

A: The amount which is charged by the lender to the borrower in order the use assets is known as the…

Q: How is the payback period determined?

A:

Q: Write an equation for determining the value of the series of end-of-period payments?

A: Formula:

Q: What are Equal-Payment Series?

A: Equal payment refers to the equal net periodic cash flows that an investor receives during the life…

Q: What is meant by the term payback period? How is the payback period determined? How can the payback…

A: Meaning: The payback period is the time required to earn back the amount invested in a particular…

Q: Define payback period.

A: Capital investment analysis: Capital investment analysis is the process of decision making, planning…

Q: Explain the Accumulation of a Future Sum?

A: The concept which gives the value or worth of money held today at the future date due to its…

Q: Define Interest cost.

A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…

Q: What is Form of payments

A: Payments are the consideration paid for buying goods or for receiving services. Goods include…

Q: Interest cost is calculated by multiplying the______by the ______?

A: Interest cost is calculated by multiplying the  Principle amount by one plus the annual interest…

Q: Define the Equal-Payment Series?

A: Answer: The main goal of this investment method is to calculate the present value of equivalent…

Q: what is the formula for compounding interest?

A: Compound interest can be defined as the interest earned on principal amount and on all previous…

Q: what is payback period

A: Capital Budgeting: It is the planning process used to determine whether an organization invests in a…

Q: ired to remit this payment?

A: As per IRS ,if the due date for payment of  federal tax falls on Saturday , Sunday or national…

Q: ermine the amount of each payment?

A: Loan: The loan is a value that is borrowed from external sources like banks and this amount is…

Q: What is the single-payment present-worth factor?

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: What is the proposal’s internal rate ofreturn?

A: The internal rate of return is a metric used in financial analysis to estimate the profitability of…

Q: What is the process of consideration of the payback period?

A: Payback period It computes the required time to recover back the project’s investment by way of…

Q: Create a chart reflecting the convention payback period?

A: The chart is presented below:

Q: What is the present worth of a uniform series payment?

A: The present worth is the value of an asset at present considering an assumed discount rate, which…

Q: What is the future worth of a uniform series payment?

A: The future worth is the value of an asset at a predefined future date which increases at a specific…

Q: Does Compounding Occur at a Different Rate than that at which payments are made? How?

A: Answer: The answer is no, because the compounding takes place at the same rate as that at which…

Q: Explain payables deferral period (PDP)

A: Payable deferral period (PDP) is a period or number of days that firms take to pay their creditors…

Q: What would be the value the payment?

A: In this question, we will use the excel function for calculating the maturity value of loan from the…

Q: How is the PW analysis dependent on the rate of interest used for the PW computation?

A: Net present value (or) PW analysis is one of the capital budgeting techniques. When a company is…

Q: What do you mean by balloon payment?

A: Balloon payment:  A balloon payment is a big imbursement made at or nearby termination of a loan…

Q: How is the payback period is calculated?

A: Payback period is the amount or length of time taken by an investment to recover its cost.

Q: Define the term the equal-payment-series compound-amount factor?

A: Equal-payment-series compound-amount factor: Equal payment series compound-amount factor is utilized…

Q: Do the Compounding Occurs More Frequently than payments are made?

A: Compound interest - In this method, the interest is calculated on the balance at the end of each…

Q: Describe the methods of calculating interest?

A: In the finance industry, every decision revolves around the interest rate. This is a crucial…

Q: What is meant by the term payback period?

A: The Payback Period helps to determine the extent of time required to recoup the initial cash outlay…

Q: Define the term Non-comparable Compounding and Payment periods?

A: The question is based on the concept of interest rate calculation, which depend on the compounding…