(1) The total amount of a loan to which interest has been added is P 200,000. The term of the loan was four and one-half years. a. If money accumulated at simple interest at a rate of 6%, what was the amount of the loan? b. If the annual rate of interest was 6% and interest was compounded annually, what was the amount of the loan?
Q: Old Alfred Road, who is well-known to drivers on the Maine Turnpike, has reached his 70th birthday…
A: Accumulated savings $ 1,80,000.00 Saving Account $ 12,000.00…
Q: Markov Manufacturing recently spent $10.2 million to purchase some equipment used in the manufacture…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: LIFO was designed to protect cash flow in industries where prices increase rapidly. It has been used…
A: In FIFO method of inventory valuation, it is assumed that the inventory which was purchased first…
Q: Toni Torres wants to save $1,300 in the next two years to use as a down payment on a new car. If her…
A: Information Provided: Future value = $1300 Interest rate = 9% Period = 2 years
Q: The credit card with the transactions described on the right uses the average daily balance method…
A: A credit card billing statement has to be prepared. For that we need the average daily balance,…
Q: bond, paying semi-annual coupons of 6% per annum, matures in 18 months time, and has a dirty price…
A: Yield to maturity(YTM) is the rate of return that a bondholder will get if he holds bonds till…
Q: The total amount of a loan to which interest has been added is P 200,000. The term of the loan was…
A: Simple interest is the interest on the principal amount only and there is no interest on interest…
Q: Lance deposited $5,000 at Basil Bank at 9% interest compounded daily. What is Lance's investment at…
A: Initial deposit (I) = $5,000 Daily interest rate (r) = 0.000246575342465753 (i.e. 0.09 / 365) Daily…
Q: (2) Jack has deposited P 1,000 into a savings account. He wants to withdraw it when it has grown to…
A: Initial deposit (I) = P1,000 Future value (FV) = P2,000 Interest rate (r) = 0.04 Period (n) = ?
Q: Exponential Decay) 4\ The value of a car declines exponentially at 7.5% per year. Find the…
A: Given: Interest rate = 7.5% Years = 4 Future value = OMR 14,816.36
Q: Shares in SergeantPepper will earn a return of 6.00% during a bull market, and 6.10% during a bear…
A: To Find: covariance of the two security returns
Q: (4) Given A(5)= P7,500 and A(11) = P9,000. What is principal (beginning) balance assuming compound…
A: Amount at t=5 is P7,500 Amount at t=11 is P9000 To Find: Begining principal balance
Q: A stock has had returns of 16.72 percent, 12.20 percent, 5.90 percent, 26.86 percent, and −13.49…
A: r1 = 0.1672 r2 = 0.1220 r3 = 0.0590 r4 = 0.2686 r5 = - 0.1349 Number of returns (n) = 5
Q: Quade, Inc. bonds have a 4% coupon rate with semiannual coupon payments and a $1,000 par value. The…
A: Annual coupon amount (C) = $40 (i.e. $1000 * 0.04) Current price (P0) = $990 Current yield = ?
Q: A firm is expected to pay a dividend of $6.69 next year and $7.02 the following year and financial…
A: Price of stock can be caluclated as the present value of dividend and present value of future price…
Q: Oral Roberts Dental Supplies has annual sales of $5,520,000. Ninety percent are on credit. The firm…
A: Given, The annual sales are $5,520,000 Accounts receivable are $703,800
Q: Having an opportunity to acquire a certain bond that has a face value of P1M and matures in 5 years,…
A: The coupon rate of interest and market interest rate may be different. Generally, when the bond…
Q: Stephanie was gifted $50,000.00 from grandparents and is looking to invest in stock options.…
A: As per the given information: Amount to be invested in stock options - $50,000Required return -…
Q: Accounting equation refers to the relations between line items on the balance sheet, and can be…
A: A statement has been made about the basic accounting equation. We have to find if it's true or…
Q: es the Ricardo-Barro effect say about the crowding-out effect? A. There is no crowding-out effect.…
A: Ricardo-Barro effect was given by the Professor and economist regarding the impact of the government…
Q: 2.A hospital has the following cost and utilization information Overhead cost: Maintenance…
A: Average cost is total cost divided by number of units where costs are allocated.
Q: Firms often pursue international mergers and acquisitions instead of forming a cross-border…
A: Mergers and acquisitions are related to combining two companies into one. The companies generally…
Q: This question assumes the standard mean-variance utility function. A pension scheme offers investors…
A: Given: Cash fund return = 1.90% Balance fund return(Expected return) = 5.50% Balance fund…
Q: a. How long will it take an investment to double in value if the interest rate is 3% compounded…
A: Here, Present value (PV) = 1 Future value (FV) = 2 Interest rate = 3% No. of compounding periods =…
Q: A bond, paying semi-annual coupons of 2% per annum, matures in 8 months time. The interest rate…
A: Accrued interest= (100*2%*6/12)+(101*6.2%*2/12) Accrued interest = 1+1.04367 = 2.04367 Dirty price…
Q: How much can be accumulated for retirement if $2,000 is put aside at the end of each of the next 40…
A: The Future Value of an Ordinary Annuity refers to the concept which gives out the compounded or…
Q: Find the commission # 8 Real Estate 9 Computers 10 Major Appliances 11 Clothing 12 Computer Supplies…
A: A sales commission is the sum of money given to someone based on the volume of sales they produce.…
Q: 47. Use the following information relating to a float-adjusted market-capitalization-weighted equity…
A: The market-capitalization index is an index where the component stocks are given their weightage…
Q: Seven months ago, Rosetta purchased a bond for $3,000. Initially, she calculated the bond would be…
A: Purchase price of Bond is $3000 Time period of Rossets bond is 7 months Equivalent rate for 8 months…
Q: When evaluating capital projects, the decisions using the NPV method and the IRR method will…
A: Several statements have been given explaining why results from NPV and IRR method will differ. We…
Q: The Federal Reserve has the power to fix the min rate of interest that commercial banks may pay on…
A: Federal interest rate-Federal Reserve pays interest on bank's reserve balance, and it is a common…
Q: (4) Given A(5)= P7, 500 and A(11) = P9,000. What is principal (beginning) balance assuming compound…
A: Balance at year 5 (A5) = P7,500 Balance at year 11 (A11) = P9,000 Period from year 5 to 11 (n) = 6…
Q: Corporate bonds are riskier than US Treasury, so they pay default risk premium over what Treasury…
A: A statement is given about US treasury and corporate bonds. We have to find if the statement is True…
Q: The NXP fund has an expected return of 2.40%, with volatility 23.00%. The risk free rate is 1.40%,…
A: Given: NXP expected return = 2.40% Volatility or standard deviation of NXP = 23.00% Risk free rate =…
Q: You own a house along a river that floods severely and destroys the house once every 30 years. If…
A: Data given: Worth of House= $ 210000 Expected life of House without seawall=30 years If seawall is…
Q: Lauren deposits: • $240 at the beginning of year 1; $220 at the beginning of year 2; • $100 at the…
A: We have a series of cash flows that needs to be accumulated till 3 years after the last investment.…
Q: The credit card with the transactions described in the popup below uses the average daily balance…
A: A credit card statement shows the unpaid balance on the first day of the billing period, cash…
Q: Consider two mutually exclusive projects with the following expected cash flows : Cash Flows…
A: In a typical capital budgeting project, we have to choose one out of two projects first using…
Q: . How much new long-term debt financing will be needed in 2020? (Hint: AFN - New stock = New long-…
A:
Q: What do you think of the Business Analyst Maturity Model, and can it be a good roadmap for…
A: A business Analyst helps in identifying the business areas that improve efficiency and strengthen…
Q: To finance some manufacturing tools it needs for the next 3 years, Waldrop Corporation is…
A: Leasing The process of using an asset without actually owning the asset is known as leasing. When an…
Q: Previously, you purchased a European call option on Parlicoot Inc shares. The option has just…
A: Payoff on European call option on Parlicoot Inc shares is calculated using following equation…
Q: You are allocating your wealth between two shares, Tinkle.com and Circumbendibus Wheels. Tinkle.com…
A:
Q: Compound interest at the end of 8 years. with a principal amount of 10,000 and an annual intrest…
A: This is a case of compounding. The final amount is obtained after compounding the principal amount.
Q: Tom borrowed 300,000 for his son Remy's law school tuition at the University of Missisippi. Tom…
A: We need to use Simple interest formula to calculate maturity value of loan. A =P(1+r*t) where A=…
Q: A firm with sales of $500,000, net profits after taxes of $20,000, total liabilities of $200,000,…
A: To calculate the return on equity we will use the below formula Return on equity = Net profit…
Q: A P100,000, 6% bond pays dividend semi-annually and will be redeemed at 120% on December 31, 2015.…
A: Semiannual coupon payment (C) = P3,000 (i.e. P100,000 * 0.06 / 2) Semiannual Yield to maturity (r) =…
Q: Mature in 7 years, have a face value of $1,000, and make an annual coupon interest payment of $60.…
A: P0 = Price of the bond C = Annual coupon amount i.e. $60 r = Yield to maturity i.e. 0.08 n =…
Q: Inventory is not part of the liquid assets because it is mostly physical in nature. True False
A: Liquid assets are the assets which can easily be converted into cash in short duration of time.…
Q: orrisey Company is in the process of constructing a new plant at a cost of $25 million. It expects…
A: The payback period is the period required to recover the initial amount of investment and it…
Step by step
Solved in 3 steps
- Find the interest paid on a loan of $2,700 for one year at a simple interest rate of 11% per year. The interest on a loan is S1. Let's assume that a loan of $100,000 with an annual interest rate of 6% over 30 years pays monthly payments of $500. a. Calculate the accumulation rate b. Calculate the payment rate . c. Answer : How will the balance of the principal be at the end of the loan in relation to the original amount of the loan? Less, equal or greater? Provide calculations.1. Mary made a loan of P58,000 to supply her new business. It is to be amortized by ten equal payments of P6,300 at the end of each quarter. a. What is the semi-annual interest needed to amortize the loan? b. Make an amortization schedule showing the distribution of the payments.
- A loan of $8000 made at 6% compounded monthly is amortized over five years by making equal monthly payments. What is the size of the monthly payment? What is the total amount paid to amortize the loan? What is the cost of financing?a) For a loan of $55,000, with an annual interest rate of 5 % p.a. compounded monthly, and monthly repayments of $1,100. Find the number of payments required to repay the loan. How many years is this?What is the total interest paid on a loan of $5,000 at APR = 6% for one year.
- what is the total amount of the monthly payments for a 5-year loan is $10,692. The APR is 7%. How much money was originally borrowed?Consider the following loan. Complete parts (a)-(c) below. An individual borrowed $87,000 at an APR of 6%, which will be paid off with monthly payments of $594 for 22 years. a. Identify the amount borrowed, the annual interest rate, the number of payments per year, the loan term, and the payment amount. the annual interest rate is %, the number of payments per year is The amount borrowed is $ payment amount is $ b. How many total payments does the loan require? What is the total amount paid over the full term of the loan? payments toward the loan and the total amount paid is $ c. Of the total amount paid, what percentage is paid toward the principal and what percentage is paid for interest? The percentage paid toward the principal is% and the percentage paid for interest is (Round to the nearest tenth as needed.) There are %. the loan term is years, and theSuppose you take on a loan that is subject to an annual interest rate of 12%, with the interest rate being calculated at the end of each month. Two years later you pay back the loan in full by making a payment of $1,020. What was the original amount of the loan?
- a. Set up an amortization schedule for a $19,000 loan to be repaid in equal installments atthe end of each of the next 3 years. The interest rate is 8% compounded annually.b. What percentage of the payment represents interest and what percentage representsprincipal for each of the 3 years? Why do these percentages change over time?A loan of $1500 is repaid with a check for $1575. If the annual simple interest rate was 15%, what was the time length of the loan in years? In months?A loan made at an annual rate of 2% has 12 remaining payments of 1900. What is the loan balance?